The Jersey Financial Services Commission has confirmed that it recognises the challenges facing regulated businesses due to coronavirus, as staff work from home, working practices are revised and there are shortages among board and staff members.
As a result, it is extending some forthcoming deadlines, and will be reviewing other upcoming deadlines and approaches to regulatory requirements.
An area of the JFSC's website has been dedicated to information relating to Covid-19, for both regulatory matters and registry users – click here
Key announcements
Audited financial submissions – The JFSC is giving a three-month extension for submissions due between 31 March and 31 July 2020 – click here for more details
Unaudited financial submissions – The Commission may ask businesses to provide unaudited financial submissions before the revised deadline, so these must be prepared as near as possible to the usual submission deadline.
Other regulatory submissions – Some of the deadlines for other regulatory submissions due between 31 March and 31 July 2020 have been revised – for more details click here
Capital and solvency requirements – To meet regulatory obligations, businesses are required to maintain adequate financial resources at all times. The current economic environment may place pressure on the financial resources of some businesses, so it's important capital, financial resource and solvency requirements are actively monitored:
• Ensure finance functions are regularly monitoring forecast budgets against actual performance
• Increase the frequency of Adjusted Net Liquid Asset (ANLA) and Margin of Solvency calculations to maintain specified thresholds
• Update and document that directors (partners, certificate holders or other senior managers) are satisfied that the organisation can maintain adequate resources to meet business commitments.
Outsourcing – Many regulated businesses will have already undertaken a detailed review of their outsourcing arrangements; if not, this must be carried out as a priority. It is important to assess contingency plans and make alternative arrangements if the outsourced party can no longer continue to fulfil the activities.
Cyber and financial crime – During such times of economic and social stress, criminal activity does not diminish, so businesses have been urged to notify the JFSC of any attempted or successful cyber-attack.
Notifications – Attention must be paid to Principle 6 of the Codes of Practice (Principle 5 of the Money Services Business Code of Practice) and to making all required notifications. The JFSC uses this information to identify thematic risks and emerging trends across industry. The scope of Principle 6 extends to unregulated activities undertaken by regulated businesses and their corporate groups.
Examination programme – The JFSC's onsite examination programme is being postponed for an initial four weeks. Any business currently engaged in the examination process will be contacted directly about next steps.