The Jersey Financial Services Commission (JFSC) has extended its law on civil financial penalties for contraventions of its Code of Practice to apply to a “principal person”.
The new legislation, which came into force on 26 October, allows the commission to impose fines of up to £400,000 ($510,000 €450,000) on the rule-breaking individual(s) rather than the company they work or are doing business for.
The regime will be applied if “a significant and material contravention of a Code of Practice by a registered person” was committed.
Under the legislation a registered person is someone who exercises banking business or has a permit to work in the insurance business or works within financial services in Jersey.
Concerns raised
The law passed after concerns were raised that companies would be found liable for their employees’ wrongdoings, rather than the workers themselves.
The penalties can be applied if the Code of Practice had been broken either intentionally or recklessly.
The nature of the contravention in the amendment law falls under ‘Band 3’ fines, according to the JFSC Financial Penalties Order 2015, which was originally reserved for“intentional and reckless” wrongdoings.
This follows the conviction in September this year of the ex-Lumiere chief Chris Byrne, who was remanded in custody for funnelling £3m into a risky fund.
