Regulator calls for improvements after assessment reveals failings

Monday 21 February 2022

13 businesses will be required to submit formal remediation plans after an examination programme by the financial regulator identified “a large number" of areas in need of improvement.

The Jersey Financial Services Commission (JFSC) has published a feedback paper after a thematic examination of supervised businesses.

Within the paper it was noted that 14 businesses - none of which were named - were examined in total, with findings identified for all but one. Over the 13 other businesses, 47 findings were identified with 18% “considered to be of a more serious nature”. 

At 49% almost half of the findings related to systems and controls, while 19% were attributed to customer risk assessment issues.

11% of findings were attributed to business risk assessment, 6% to ongoing monitoring and 4% concerned politically exposed persons.

Identification measures, relating to matters such as evidence of identity and beneficial ownership, comprised most of the remaining findings. 

Pictured: A diagram charting the number and category of the JFSC's findings.

In addition to the examined businesses, 19 more were issued with a related questionnaire. “A number of deficiencies” were revealed from the received responses.

The JFSC also praised examples of good practice identified during both the responses and the examinations, encouraging all businesses to build upon this by considering enhancements to existing systems and controls.

Each business that received findings from either the questionnaire or examination will be subject to “follow-on supervisory engagement” from the JFSC, which includes the submission formal remediation plans to agree a timescale and scope of corrective action. 

Click HERE to read the JFSC’s feedback paper in full.