Protecting clients and their rights have been the focus of regulators across a range of industries for many years. None more so than in the financial services industry. The financial crisis brought to the fore the importance of how firms in the financial services industry manage clients and their assets.
Financial services firms have seen increased instances of claims being brought for loss of assets, misappropriation or indeed misuse. They are driven by a failure of firms not understanding their client’s objectives or providing an inappropriate product. Consequently, regulation has increased to ensure that firms act appropriately in safeguarding clients.
A strong regulator and well-developed regulation, support Jersey's financial services industry. The protection of clients and their assets have long underpinned this regulatory environment. For example, regulated businesses are required to adhere to a Code of Practice applicable that include two core principles:
These core principles have never changed. Indeed, their relevance today is just as significant as when they were first introduced. New changes to the Codes of Practice in Jersey will see the introduction of a specific requirement to ensure that regulated businesses have appropriate controls in place to prevent against the loss, misuse or misappropriation of client money. So, what do these changes in regulations mean for regulated businesses such as Fiduchi, and more importantly our clients?
Being a regulated provider of trust and company services in Jersey, Fiduchi has continued to grow as the regulatory environment has evolved. When regulation of trust and company service providers was first introduced in Jersey in 1998, the core principles of integrity and having the highest regards for the interests of clients drove the direction of regulatory development. Since then, specific regulation has been introduced around how client money should be handled. In reality, the new regulations continue to reinforce the regulatory environment what has existed for the last twenty years.
Fiduchi has a long history of acting in a fiduciary capacity. Where Fiduchi acts as Trustee, it does so in accordance with the requirements of the Trust (Jersey) Law, 1984. This law includes the requirement that a Trustee must exercise their duties acting with due diligence, to best of their skills and ability and in observing the utmost faith. Furthermore, that the value of the trust property shall be preserved and enhanced, wherever possible.
Essentially, Trust law in Jersey has long held that those acting as Trustee must act with integrity and with the highest regard for the interests of clients (the beneficiaries of the Trust). All of which is at the heart of regulation and the new changes that are being introduced.
For further information on the law covering the protection of client assets, please click the link below:
We're six weeks into 2020 and Brexit has happened. So now what do Jersey Financial Services and it's clients need to consider? It's time to look ahead to the rest of 2020 (and beyond) and consider what changes are on the horizon. However, whether anyone can truly do so with the clarity of 20/20 vision is questionable. What we do know is that the world in which our clients and we operate in continues to be one of uncertainty.
The Government of Jersey has a long-standing commitment to Jersey being a well-regulated international finance centre, which complies with international standards in transparency. Such an approach can confuse clients as to the applicability of EU legislation to Jersey.
Paul Coundley examines what makes Jersey and Fiduchi so appealing for international clients and their businesses look for a safe harbour in these uncertain times.
Fiduchi’s foundations are built on those of the chartered accountancy profession, which is itself built upon the foundations of integrity and professionalism. Fiduchi has embedded at its heart integrity and how clients’ interests should be met. Therefore, Fiduchi is more than well placed to continue being able to meet the requirements of regulation as it evolves and more importantly to ensure that the interests of clients continue to be met well into the future.