As we enter September, it is worth taking a look back over the summer months to remind ourselves what has been happening down at the JFSC-Towers.

1. Amendments to codes of practice
   1. On May 18, 2016, the JFSC published feedback on its Consultation on Amendments to Codes of Practice.
   2. These amendments seek to:
      1. ensure that all notification requirements are clear and unambiguous;
      2. update regulatory requirements on the handling of consumer complaints following the establishment of the Channel Islands Financial Ombudsman; and
      3. make minor updating and consequential changes.
   3. The amendments will come into force on September 1, 2016.
   4. To assist regulated entities, clean and tracked changes versions of the codes are available on the JFSC website.

2. Increases to fees
   1. A number of Jersey firms have responded to the Jersey Financial Services Commission’s (JFSC’s) consultations on how fees paid by regulated business are calculated and levied.
   2. Based on the feedback it received, the JFSC has decided to modify some proposals contained within the consultation paper and delay implementation for 12 months.
   3. The JFSC agreed to drop the proposed “complex” fee that would have created unwelcome uncertainty for fund managers.
   4. The proposed fee increase of 7% came into force on July 1, 2016, in relation to alternative investment funds (AIFs), AIFMs, certified fund certificate holders, recognised fund permit holders, control of borrowing funds and registered persons.
3. JFSC Consultation 3/2016: MiFID II
   1. Published on April 25, 2016, Consultation 3/2016 sought input as to whether Jersey should introduce an EU Markets in Financial Instruments Directive (2014/65/EU) (MiFID II) equivalent regime and set out certain potential benefits and costs of doing so.
   2. The introduction of a MiFID II equivalent regime could create an opportunity for Jersey’s investment businesses to participate in the EU passport for professional investors, as long as Jersey’s investment regime is judged to be equivalent to MiFID II. The consultation closed on July 15, 2016.
   3. Industry players, in conjunction with the Jersey Funds Association, have been involved in submitting an industry response that considers the potential disadvantages to the fund’s industry in adopting a MiFID II compliant regime, particularly in the context of the UK public’s vote to leave the European Union.
4. JFSC change programme – second paper
   1. The JFSC issued the second paper in its Change Programme on April 15 2016.
   2. This paper explains how the JFSC is changing the way that it will supervise and interact with firms in the future, and how those changes are likely to affect regulated businesses by simplifying and speeding up their interaction with firms.
5. JFSC publishes crowdfunding FAQs
   1. The JFSC published a set of frequently asked questions (FAQs) in respect of crowdfunding on May 20, 2016, which:
      1. introduce the different types of crowdfunding;
      2. explain the existing regulatory treatment of crowdfunding in Jersey; and
      3. discuss the risks of investing in business through a crowdfunding platform.
      4. The publication of the FAQs comes at the same time as the Financial Conduct Authority’s call for input on crowdfunding rules, seeking views on both loan-based and investment-based crowdfunding.

6. MONEYVAL report published
   1. On May 24, 2016, the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) published a report assessing Jersey’s compliance with the Financial Action Task Force standards.
   2. The report noted that Jersey has a mature and sophisticated anti-money laundering regime, as well as an internationally recognised mechanism to ensure transparency of beneficial ownership information.
7. Amended outsourcing policy
   1. On July 18, 2016, the JFSC issued a consultation paper seeking input on proposed changes which will:
      1. amend the scope of the policy regarding outsourced activity;
      2. define key terms to remove ambiguity;
      3. remove the distinction between delegation and outsourcing in relation to certified funds and fund services businesses;
      4. make changes to the core principles in order to provide clarity and align with international standards; and
      5. provide additional guidance, including FAQs.
   2. A draft of the amended outsourcing policy and guidance notes is available for review. The consultation closes on September 30, 2016.

8. Draft Proceeds of Crime (Miscellaneous Amendments) (Jersey) Regulations 201-
   1. On May 4, 2016, the chief minister lodged the Draft Proceeds of Crime (Miscellaneous Amendments (Jersey) Regulations 201-.
   2. The draft regulations focus mainly on the implementation of a policy to regulate virtual currency in Jersey.
   3. This reflects the growing importance of financial technology to Jersey, as the technologies being developed have a huge economic potential for the island.
9. Jersey and Mossack Fonseca.
   1. On May 10, 2016, the JFSC announced that it had issued a request for information from financial services firms to be fully informed on any material connections between Jersey and Mossack Fonseca.
   2. So far, only a small number of relevant connections have been found, all of which are being examined by the JFSC.