The proposals are principally aimed at bringing greater certainty to the PoA Law as it is applied within the cross-border finance sector, as well as providing a clear mechanism for non-corporate bodies with separate legal personality, such as Limited Liability Partnerships and Limited Liability Companies, to grant powers of attorney under Jersey law. This is particularly timely given that the Limited Liability Companies (Jersey) Law 2018 will be coming into force in September of this year.

In summary, the changes are intended to:

  • provide that particular entities with separate legal personality that are not body corporates are able to execute powers of attorney;
  • clarify the applicability of the PoA Law to foreign-law governed powers of attorney granted by Jersey persons;
  • confirm that an attorney may, in certain circumstances, sign a power of attorney on behalf of a donor;
  • confirm that an irrevocable power of attorney can be granted for longer than a year where it secures the performance of an obligation owed to the donee (at present this is expressly permitted in relation to defined Jersey security interests or interests secured under foreign law);
  • confirm that the PoA Law does not affect arrangements created under the customary law of agency;
  • clarify that nothing in the PoA Law shall be interpreted so as to preclude the grant of a power of attorney under the PoA Law by an entity incorporated or established outside of Jersey.

The consultation does not deal with electronic or remote witnessing of Powers of Attorney or other documents; nor will the amendments have any effect on Lasting Powers of Attorney made under the Capacity and Self-Determination (Jersey) Law 2016. The consultation closes on 12 August 2022.

For the finance industry, the changes are likely to be welcomed. Powers of attorney are important for financing transactions and executing foreign law documents in which limited liability partnerships and separate legal partnerships are often used and it is anticipated that limited liability companies will also be similarly used. These entities were (and will be) introduced into Jersey law since the introduction of the PoA Law. The PoA Law currently provides a mechanism by which individuals and bodies corporate may execute powers of attorney, but there is currently no express provision for entities with separate legal personality to do so. The amendments will therefore provide clarity and certainty by way of expressly providing for such entities to execute powers of attorney.

The proposed changes, together with amendments to the Probate (Jersey) Law 1998 expected later this year, to provide new arrangements for the management of movable estate in Jersey, and the ongoing consultation launched by the Government of Jersey and the Jersey Financial Services Commission on facilitating the adoption of digital ID systems will each have a practical impact on the way business is done in Jersey. If implemented, the changes are likely to necessitate adaptations to procedures and processes used by fiduciary businesses and those registered for deposit-taking business, in particular.

Do get in touch with your usual Appleby contact should you wish to discuss what this could mean for you and your business.

Key contacts

Andrew Weaver

Partner: Jersey

T +44 (0)1534 818 230
E Email Andrew

Gemma Whale

Counsel: Jersey

T +44 (0)1534 818 163
E Email Gemma

Twitter LinkedIn Email Save as PDF
More Publications
27 Sep 2022

Similar but Different

While the basic features of the trust remain, there are some notable differences in how trusts can b...

1 Aug 2022

Register of Overseas Entities: A Jersey perspective

The Register of Overseas Entities at Companies House (ROE), as contemplated by the Economic Crime (T...

30 Jun 2022

Digital Identification in Jersey

There have been considerable changes made to the way we do business in recent times. These changes w...

Contributors: Gemma Whale, Paul Worsnop
9 Jun 2022

Trustee Knowledge Series: Masters Paper Two: Family Governance

Appleby Private Client & Trust Partner David Dorgan has authored and distributed a series of Tru...

17 May 2022

Navigating the Jersey M&A landscape (3 of 3)

This is the third of a series of three articles, each dealing with topics to be considered when buyi...

Contributors: Andrew Weaver
5 May 2022

The Economic Crime (Transparency and Enforcement) Act 2022: a Jersey perspective

The new Economic Crime (Transparency and Enforcement) Act received Royal Assent on 15 March 2022 (th...

Contributors: Andrew Weaver, Gemma Whale
21 Apr 2022

Listing Private Equity Acquisition Debt on The International Stock Exchange

This article provides a summary of Appleby listing agent services in the Channel Islands, and also o...

12 Apr 2022

Trustee Knowledge Series: Masters Paper One: PTC Structures

Appleby Private Client & Trust Partner David Dorgan has authored and distributed a series of Tru...

16 Mar 2022

Trustee Knowledge Series: Advanced Paper Eight: Amending Mistakes

It is almost inevitable that during the life of most trusts (which can now last indefinitely in many...

4 Mar 2022

The International Stock Exchange (TISE) has launched its new bespoke auction trading system, NOVA

Appleby is a leading listing agent with TISE, which listed 1,111 securities during 2021 against the ...