The Jersey Financial Services Commission (JFSC) from 23 June, 2015 will have the power to impose financial penalties on regulated businesses of up to £4 million, for significant and material breaches of the Codes of Practice, including contraventions of the Handbook for the Prevention and Detection of Money Laundering and the Financing of Terrorism.
The proceeds from the financial penalties will be used to reduce, or mitigate required increases in the fees for regulated businesses; effectively ensuring that in the future, those companies that invest in compliance with Jersey’s regulatory standards will no longer have to carry the financial burden of dealing with those companies that fail to comply with regulatory standards.
Director-General John Harris commented:
“The introduction of financial penalties strengthens the sanctions that the Jersey Financial Services Commission can impose to deal with significant and material breaches of our Codes of Practice. This will bring us in to line with similar powers exercised by counterpart regulators around the world. We will exercise such powers in a reasonable and proportionate manner with the aim of protecting consumers, the reputation of Jersey’s finance industry, and deterring and preventing financial crime. A credible regulator needs appropriate sanctions and the ability to impose financial penalties for serious misconduct, ensuring that Jersey will continue to be a well regulated finance centre.”
The enabling legislation, the Financial Services Commission ( Amendment No. 6) (Jersey) Law 2015 came into force as from the 20 March 2015 and the Financial Services Commission (Financial Penalties) (Jersey) Order 2015, that sets the financial penalty tariff, will come into force as from the 23 June 2015.