Financial Services Regulation
Pure lending in Jersey is not itself an activity regulated by the Jersey Financial Services Commission (JFSC), but if lenders are also taking deposits, they will be caught by the requirements of the Banking Business (Jersey) Law 1991 (Banking Law). Under the Banking Law, a person needs to be registered with the JFSC if they carry on, or hold themselves out as carrying on, a deposit-taking business in or from within Jersey.
Where lenders do not take deposits in Jersey from customers, are not incorporated in Jersey and do not hold themselves out as accepting deposits in Jersey, registration with the JFSC should not be required. Particular care should, however, be taken when entering into agency and/or services agreements with providers established in Jersey as this may have an impact on the need for registration. Similar care should be taken if the corporate name of the institution lending into Jersey contains the term “Bank” (e.g. “[Name] Bank Limited”) and that institution intends on using this name in any transactional or ancillary documentation. Early discussion with the JFSC is recommended.
