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2021 ANNUAL
REPORT
R.100/2022
Our vision
to be a high performing
2 regulator, 3
building for
the long-term success of
Jersey
Contents
6 2021 - Highlights at a glance
8 Chair s statement - A vision from the top
12 Director General s view - A year of challenges and
opportunities
16 Our key projects in 2021:
18 1. Enhancing how we fight and prevent financial crime
20 2. Transforming the way we supervise
22 3. Building a modern and resilient registry
26 Our strategy refresh
28 Our Vision
29 How we will deliver our strategy our core projects
30 Beyond the key projects:
32 Supervision
4 34 Enforcement 5
36 Conduct and Prudential
37 Sustainable Finance
2021
39 Innovation Hub
40 Committing to Environmental, Social and Governance ANNUAL 42 principles (ESG)Our Risk Framework
REPORT 444858 Our PFinance and rIndependent auditeople esourorcess report
52 Governance statement
66 Financial statements
72 Notes to the financial statements
84 Appendix
2021 - Highlights People Enforcement
at a glance Anovumbervereragthees grpaofos3.8%wt fivth in se peryeartaannfsf um 631 inranepord shttsarerwedneral inewicompilttheloliurgenedce
Supervision teams
Enhancing how we fight and prevent Builplatfding orm s a maw an inoderc n reaanse d r in et silienotal submissionst Registry 32 94 94 Enfcoracsemes henant dlopered batyionsthe team financial crime
Transforming the Registry to a digital self-service
1,200 80% 32 new starters and 100+ interviews
15 public statements £111,000 Jersey business licensed or
about scams relating to impersonating a legitimate
2nd phase NPO risk assessment questionnaire to 1,200
operating from Jersey NPOs with 80% response rate Approx 200 internal training webinars and £111K
learning and development spend
275 275 separate engagement Annual Confirmation
29,570 processed;
activities were recorded with Statements were
Inmduseetingtrysoanutrdeawcorh,koninge grtooonupes 3,227 Strengthening Organisational Resilience 1,600 separate pieces of
Total registrations; We outlined in our intelligence assessed
6 109,743 Total submissions; bthusinat tehsse fin planan cfialor 2021 7
66,988 Chownangerse s/ conto bentrolelficers.ial rkus.NeeosilienyvR semberetvieracteewgicr complevie prwiorewittaedysfainor
15 cases assisting Commenced work to consolidate 4 handbooks into 1 Engagement myJFSC (supervision overseas regulators
portal), upgraded
CRM system in
Supervision and further
advancement of our risk
model Supervision
37 external meetings of
working groups
20 Webinars and 5 Events for 2021 -
Innovation Hub Total number of attendees = 7870
Participated in 62 separate
engagements and events Transforming the way we supervise focussed on innovation in
financial services in Jersey
184 Examinations 434 Authorisations for conducted across a range of different
255 entities activities and sectors
77 enquiries responded
895
433,289 website visits 14,000 views of our to, spanning all financial Risk reports captured by 864 PQ applications processed videos on Vimeo services sectors our Supervision team
Chair s statement
8 9
Chair s
statement Italttoo linodidelivwing uscgireatiserseedoturhtoeirourobjec hanprcapabiliodlctivee insse ocetfrsy eabecoming whilansded bsctapaausinutcomaitehiyss,a gh-perent vingolablingumourfores,s.mingfir ms In a world wherfirms and their clients benefit fre om
2022 will see us continue this investment programme
A vision from the top regulator. jurisdictional choices,
how do we ensure
OurBanodarordeutsilienanwdartds,hcee aEesxn ecablinganutorivge anisuss tthaoetunionbanderdurdwidthstingand2 tt021ohelook c gh aal vahelengteahede s they choose Jersey? that Jersey faces as an International Financial Centre
(IFC). It allowed us to formulate how we can best
prepare ourselves and create the resilience needed for
the future.
Our investment in people and processes will ensure
In our 2020 annual report, I looked forward Our starting point was to accept that we have no that we are a high-performing organisation. This isn t us
to the Island emerging from the pandemic automatic right to remain a leading IFC. In a world being introspective, it recognises that we need the right
and the challenges we needed to face. As we where firms and their clients benefit from jurisdictional internal infrastructure if we are to support the Island
now know, the pandemic lasted far longer choices, how do we ensure they choose Jersey? We as a high-quality IFC. The three year strategy that we
than many of us had hoped, and so did the concluded that we wanted Jersey to remain a high- launched in November last year draws upon several
disruption that it caused. Whilst the effective roll out of quality jurisdiction where it was straightforward to do strands of existing activity that build our capacity and
the vaccination programme reduced the impact of Covid business. capability to respond to changes in the International
on our health, it continued to disrupt our businesses. To remain high-quality, we concluded that we needed landscape. These activities will intensify over the
Therefore, for most of us, 2021 was a year when to build on the work we are undertaking for next year s coming years as the pace of change accelerates.
the resilience of our businesses and organisations MONEYVAL inspection. During 2021, the Commission
continued to be tested. I am pleased to report that, staff have been heavily focused on preparations Rase silienChaircoef demthe Commission,onstrates itsel thf in mere isanony ew Ia wys,an bt ut to
10 thanks to the resilience of its people and systems, the for that inspection. This involved extensive effort highlight a change of leadership. I would like to 11
Jersey Financial Services Commission ( the JFSC or internally as well as strengthened engagement with take this opportunity to thank Martin Moloney for his
Mark Hoban the Commission ) operated well in all areas during Industry, the Government of Jersey (GoJ) and its leadership of the Commission. He helped drive forward
this period. Our programme of inspections took place agencies, such as the States of Jersey Police. This work change in the Commission, the fruits of which we are
Chairman remotely, we worked with Government and Industry on included strengthening the legislative and regulatory enjoying today. Martin s new role as the Secretary-
MONEYVAL and policy development, and we continued frameworks and enhancing our approach to the General of IOSCO was a once-in-a-lifetime opportunity
to enhance our systems. supervision of Anti-Money Laundering/Countering the and recognised that Jersey is a proving ground for
Financing of Terrorism (AML/CFT) . As a Commission, International regulation. We wish him well in his new
Rpanesiliendemicce isdid,an impor so too ntoanwt tthheemwar in Ukre for us. Aains et hcone tinues the following MONEYVAL assessment. Our success ranolde.h Jilasl Brdr iivttenon sfortepped in ward the a sst rIna tt ereg im y wiDirth ec n ta or Gentural enereral gy
we believe that this focus needs to continue beyond
to stretch us all. These events present new challenges relies on the Island s reputation, and this is permanently and determination. I am very grateful to Jill for her
that pose searching questions about our readiness to under scrutiny, not just every time there is an leadership in this period, and her achievements over
deal with unique and changing circumstances. After assessment. Therefore, our focus on AML/CFT is and this period as Interim Director General have been rightly
the events of the last two years, it feels that there are will be a permanent priority for the Commission. recognised with the Board making her appointment
"The investment we more and more events that could knock us off course. permanent in April 2022. Throughout this, I am thankful have made in our pandemic to help us plan and reshape going forward. Bofeing f thea s Intdusraightry tfsorfeedbaward plck.acOure to rdoevie businw ofe tsshe builds who have continued to get on with the job, continuing to
So it is right to learn the lessons of our response to the for the professionalism and commitment of our team, people and systems The investment we have made in our people and aledut htoorsistraeamliningtions proc anessd pstublishandared in disingFebruar our appry loaast chyear to demonstrate their resilience.
has paid dividends, systems has paid dividends, and it has enabled us to imprabout proving oviding beefficienctyter gand uidaneffeccteivanend impress. Thisoving in is not justernal t I would also like to thank my fellow Commissioners for and it has enabled us mthaine sttainrenganthdening furtherof bouilur Superd our cvision apacittyeams. For e in 2xampl020 e, consistency; we also set up a Central Operations team their support during what has been another challenging
to maintain and further and our risk-based approach enabled us to focus our tpro hocanessdlees. boWteh knReogisw ttrhyaant od Superur rulebook vision anapplicd guidanationsce year for the Commission and the Island.
build our capacity. " rwpleeas ltofauroruncm ecshwed on hiasoa siur nghgnier rewfic misk anyRent pretgisitojeciets.ryt In sfyor usFsebruartem.an Thisd y lIna ndusset wytearry. , grto ocwreaortgeanic clearalerly ,s antand darit wdsas f torimfire tmso prun to fole tlohwes. eIn
November last year, we consulted on bringing single
sector AML/CFT Handbooks into a consolidated
Handbook. This process will continue in 2022 and Mark Hoban
beyond. Chairman
Director General s
view
12 13
Director General s view
A year of challenges and opportunities
We worked hard to ensure connectivity in and across teams, to look after the health and well-being of our staff, and provide a high standard of service whilst continuing an active engagement programme with Industry .
Building even more effective supervision continued to Jill Britton be a core goal.
14 Director General
A key component of building even more effective supervision is for us to champion the need to stay ahead
Adaptability and flexibility in our working of the financial crime threat. Jersey needs to robustly environment became the new norm in 2021 respond to the increasing international pressure and
as we continued to navigate the pandemic, expectations on IFCs and their business model, to
and the challenges and opportunities it ensure that we protect and build our reputation as a presented. high-quality jurisdiction.
We worked hard to ensure connectivity in and across In preparation for the 2023 MONEYVAL assessment, teams, to look after the health and well-being of our work accelerated over 2021 both for the Island and staff, and provide a high standard of service whilst ourselves to ensure that Jersey s AML/CFT framework continuing an active engagement programme with remains robust and effective in preventing the misuse Industry. of the Island s financial services industry for ML/FT
purposes.
We reached larger audiences through webinars
and drove forward our investment in technology to Enhancing our capability and capacity in the fight strengthen our organisational resilience and continue to against financial crime will remain our number one support the ease of doing business. priority as we advance through 2022 and beyond, and
As our Chair has highlighted, resilience continued to work continued on our Financial Crime Prevention
be a key theme. Resilience is the ability to manage Capability Programme (FCPCP). The decision to
and recover quickly from difficulties, and despite the undertake an independent assessment in mid 2021 by ongoing challenges of the global pandemic, as an Financial Transparency Advisors of our preparedness organisation in 2021 we were able to make significant for a MONEYVAL assessment was an important one. and immediate progress against our three primary areas This allowed us to identify areas for improvement and of focus: put plans in place to address them.
- Building even more effective Supervision We also concluded our structured review of our licensing processes, publishing an independent review,
- Embedding risk-focused choices throughout
and responded to the findings through the delivery of our work
an enhanced approach to authorisations. In addition to
- Strengthening our organisational resilience reviewing and strengthening our policies, procedures
and reporting capabilities, we added further resources to the team to support the increase in new applications received. Further work is to be undertaken in 2022
to facilitate online application forms and associated efficiencies.
Embedding risk-focused choices throughout our work
Further key operational enhancements to our risk model were delivered, enabling a risk-based approach to our examination programme to be implemented, supported by increasingly data rich assessments of regulatory risk.
Through automation of notifications and assessments we have been able to deliver efficiency to our processing but also ensure a more consistent approach to follow up actions is achieved in Supervision.
Strengthening our organisational resilience
Core to our ambition of strengthening our organisational resilience is enhancing our digital interactions to enable effective allocation of resources, straight-through processing, and user self-service functionality.
In Supervision, myJFSC saw the replacement of the PQ system, which has significantly reduced the processing time for applications submitted. The system also enables online submissions that have been invaluable in continuing our examinations programme and continuing with data collection to inform our risk model.
In addition, we also upgraded our core CRM platform (Microsoft Dynamics 365) in Supervision, providing for straight-through processing capability, enhanced reporting functionality and workflow management.
Our digital companies Registry was delivered
in February, with the data population continuing throughout the year. This was a huge technological change for us and businesses in Jersey. The programme delivered a modern and fully digital Registry environment, provided operational efficiencies, and gave users the ability to update and submit their information online. It would not have been possible without the Registry user group s input and feedback, and we thank all the individuals involved.
As we make progress on being a high-performing organisation, we need to continue to attract and retain talent and build a strong employer brand. In 2021
we launched our people strategy to maximise our potential by developing our teams and bringing our values and behaviours to life through engagement. We significantly enhanced our capacity and capability at a senior level to drive forward our strategic ambition, which has included a number of new critical hires but also importantly, a number of internal promotions.
And finally, we conducted a financial resilience review to propose a framework within which we could secure a stronger financial position.
Business as usual
Business as usual is often overlooked. However, I want to take this opportunity to thank our staff for their dedication, drive, and delivery, over the year under continued challenging circumstances and ambitious strategic delivery.
Across all divisions we saw an increase in volumes and as ever, the teams stepped up to the challenge
to deliver against our service standards. We also saw an increase in online fraud and fraud more generally, with our teams increasing their focus on protecting the public through interventions, communications, and education.
Strategic review
An important milestone for us was the publication
in November of our strategic framework 2021-2024, which sets out a clear vision, top strategic priority and three strategic anchors.
Our vision To be a high-performing Regulator, building
for the long-term success of Jersey reflects our
commitment and contribution to the success of Jersey
as a leading and responsible IFC. 15
Our top strategic priority to continue to build our financial crime prevention capability ensures we are able to respond to the ever increasing threats as we have seen most recently with the situation in the Ukraine and the extensive sanctions imposed against Russia.
Our three strategic anchors provide the framework for which we will deliver on our vision and top priority:
- Facilitate business integrity;
- Harness technology and influence the digitalisation of Financial Services; and
- Develop our people, systems and capability to be a high-performing organisation.
Whilst there remains much to do; I am proud of our achievements and resilience in 2021. We made significant progress in ensuring we laid the right foundations to advance our strategic ambitions.
I am also very proud to be leading an organisation with purpose and responsibility. With the strength and dedication of our staff, I know we will achieve our vision to be a high-performing organisation building for the long-term success of Jersey.
Jill Britton Director General
Our key projects
16 17
in 2021 > Consof enholidaanctinging anthde AML/CFsimplifyingT H oanur dbook regul sa t aors pary t
tool-kit.
Work undertaken by the Technical Delivery project in 2021 will come to fruition during 2022 and early to mid- 2023.
- Enhancing how we fight and
prevent financial crime FCPCPSuperfocvisorusedy onef prfecojectivtens deesssigned to enhance the
Concurrent to the Technical Compliance project, the effectiveness of the AML/CFT Supervisory activities,
including:
> The facilitation and provision of regular and
Financial Crime Prevention Capability Technical compliance appropriate AML/CFT training for staff;
Programme (FCPCP)
Jersey performed well in the previous MONEYVAL > The delivery of increased outreach and
The work to build excellence in combating assessment in 2015. However, we have strived for engagement activities targeting particular Inspection preparation
money laundering and the financing of continuous improvement and higher standards in our areas of regulatory concern/focus and aimed The final body of work underlying the FCPCP is the
terrorism is a nationally coordinated effort, with the national AML/CFT framework, which has led to focusing at increasing the understanding and awareness Inspection Preparation project designed to manage the
JFSC making a significant contribution within the on raising our standards further. of Industry participants of AML/CFT risks and ongoing preparation for the forthcoming assessment in
National Financial Crime structure. The work of the Technical Delivery Project included: obligations; 2023. This project primarily focuses on the preparation
Critically, we have been building internal capability > The enhancement of internal data reporting and provision of information for the MONEYVAL
18 throughout 2020 and 2021 via the FCPCP. It is a core > Developing a Virtual Assets Service Providers and Management Information to assist us in assessors in the immediate lead up to and during the 19
ongoing programme within the organisation that (VASPs) regime in accordance with FATF demonstrating the effectiveness of supervisory assessment. Initiatives launched in 2021, included:
reaches across all divisions and projects. Recommendation 15 and, working with the activities; > The introduction of a library and a standard
Government of Jersey (GoJ), delivering a
sectoral risk assessment designed to enhance > template for Case Studies which will be used
In 2021 we engaged Financial Transparency Advisers the understanding of AML/CFT risks and to The introduction of a self-assessment to provide examples of Supervisory activity in
(FreTgA)ula tt oor cony fr ducam te wanor ink, depen systems,dent prreoviece wss oe fs, o anurd overall inform future supervisory activity; forfamoureweforfeck ttoivenenablesseanredg ulidenar atissfyearssmeasenforts support of Immediate Outcomes 3 and 4; and supervisory effectiveness. > In cooperation with GoJ, a risk assessment of improvement; > Building on our pool of trained assessors.
the Non-Profit Organisations (NPOs) sector and Two Policy and Supervision staff members
Our FTA review was done simultaneously with an FTA extending our powers to supervise NPOs for underwent FATF assessor training and
rjurevieisdicw atcion,rosswhicall agh henasc tieransls invaoltedved in AML / CFinto actions forT f t or het he AML/CFT purposes; > ThwitehininttrhoeducCompanietion of assuperRegisvisiontry; anfund ction participated in the assessments of two
National Financial Crime Structure. > Addressing actions points identified by internal countries for MONEYVAL and the FATF,
> Enhancing our information gathering powers and external effectiveness reviews. respectively. This has added to our existing
The results have been factored into the work of the and international cooperation capabilities to assessment experience and broadened our
FCPCP projects and translated into trackable actions ensure compliance with FATF Recommendation knowledge of the MONEYVAL assessment
across the organisation. Under the governance 40; process.
structure of the programme, we can be assured of
accountability and progress, with regular reporting > A review of the framework of statutory AML/ We will continue to assess the effectiveness of
through to the Board of Commissioners. CFT exemptions, in order to ensure that all such activities up to and beyond the MONEYVAL assessment
exemptions are appropriate and in line with Our FCPCP works across the in 2023 to ensure that those activities remain relevant
The three projects of the FCPCP are intended to international standards; and target areas of highest risk.
address gaps in technical compliance, enhance the > Reforming and extending the current civil organisation to coordinate In conclusion, our FCPCP works across the organisation
eafcoorfectivdinenaetedss oapprf ouro aAML/CFch to th Te superprepar vision,ation f anor d t h ensure e our work as an effective AML/
MONEYVAL assessment. They are as follows: finMofonPraneacycial pentLicaune t deroalint ing Oieclsude re rgimder Desie an gnfor brd AML/CFatedeaNcon-finhe T Cos of ant dehce sial CFT and Counter Proliferation [a]Coo coorunter dinPraolite f oerura twion orkFinasananc ing (CPFeffective ) super AML/CFvisToran. d
BusinKey Peresssons,and anPrdo foetssions,her membertheir sProinf Scipaleniorand Financing (CPF) supervisor. Durour ing 2021,organisat siiongnial fic capaant prcityo gran edss capabiliwas mtaydein in bcombauilding ting Management; and money laundering and the financing of terrorism and
Progress made in 2021 has been a positive step forward Our new system went live at the beginning of January in improving the way we grant licences for businesses, 2022, and the Supervision team are starting to evolving good authorisations practices and achieving realise the benefits of its implementation, as well proportionate risk based outcomes in an efficient and as identifying further enhancements that are now effective manner. possible.
In 2022, we will continue to focus on consolidating, In support of this focus, we have created the
updating and simplifying our licensing policies to Heightened Risk Response team (HRR) to manage
support new applicants for business and existing firms particular aspects of our supervisory oversight in the
in understanding ongoing obligations. We will develop event an entity presents one or more heightened risks.
and implement online application forms and continue HRR works closely with Supervision and Enforcement
to identify how authorisations processes adapt to keep to deliver a risk-based regulatory strategy. It is
pace with internal developments in the supervisory anticipated that this team will continue to grow in 2022. approach as well as external innovation and new and
expanding regimes within the regulatory perimeter. We have continued to work on updating and enhancing
processes, policies and procedures, ensuring that our supervisory team focus on the highest risk elements
of our highest risk entities. Our continuing work on
Through 2021, we have continued to focus on the system-based risk model has supported this risk-based supervision principles focus across the authorisations, supervisory and
examinations teams.
In 2021 we designed our improved supervision platform
with the goal of increasing our ability to demonstrate In 2021 we expanded the Supervision leadership
regulatory effectiveness, by capturing critical data and team to build capacity creating a third Director role
embedding our risk assessments in our core operational in supporting the anticipated new regimes being Our key projects In addition, by training supervisors in process mapping The Supervision team works closely with Policy
processes. developed throughout 2022.
in 2021 anpreThisfficodcLeienweanssorcekiesmalswesanertoh edopr sdolmotanvidedakogiedare its,disaneaw ed sieroppore ensurantod stt uniredtainreamlinttyhantaotd mit dehed egrvselateo t ope s onecneurewe anedeffvdecelEtopmnivfore rceniskemt-baoenf ttshed superteoRdeegvelulopavision.toranydE Thdelivffecetfurerivenconsistheer ss tent,
20 staff. Committee as a forum supports cross-division strategy 21
implementation and assessment of the adequacy of
our supervisory framework. The development of KPIs
of our core platforms to cloud-based infrastructure,
has given additional oversight to the supervisory team s
giving our teams access to modern tools, techniques,
performance in 2021.
and automation opportunities whilst managing costs.
- Transforming the way we supervise
Authorisations review and activity
In 2021, we published an independent During 2021 we have achieved the following:
review of our authorisations process and
have focused on implementing the recommendations > developed and deployed an authorisation risk made to enhance our approach to authorisations whilst framework to ensure an efficient and consistent maintaining Jersey s competitive position as a well approach to authorisations;
regulated leading financial centre.
> developed and deployed distinct risk channels
Key recommendations were: with supporting assessment control guidance;
> improving the top-down risk-based approach to > developed process flows to aid the agile authorisations; management of case load across the team;
> improving the efficiency and effectiveness of > updated delegated powers to improve our the authorisations process; and Decision Making Process (DMP);
> considering the adequacy of the current > updated reporting around the authorisations legislative requirements and their interpretative process to ensure effective oversight; and
guidance. > clarified policies and procedures.
in 2021
- Building a modern and resilient Registry
Examinations activity
Jersey's digital Companies Registry ("the Registry")
Since 2012, when Jersey s digital register for secured
transactions (SIR) went live, we have been progressing
the digital transformation journey of Jersey s
Companies Registry. This ambitious programme was
completed in February 2021 and is considered one
22 of the most digitally advanced globally. The data 23
population continued during 2021.
This was a huge technological improvement for businesses in Jersey. Previously, submissions to the Registry were completed via unstructured data (i.e. submission of PDFs online). The programme delivered a modern and fully digital Registry environment.
It delivered operational efficiencies, gave Registry customers access (via myRegistry, our registry portal and new API channels) to update and submit their information, replaced disparate systems and created a platform for future requirements.
Collaboration with Industry
The new digital platform was a significant change for Industry (technically and legally). To aid with the transition, we facilitated online collaboration sites for digital developers designing API interfaces. We also sought real-time feedback from key Industry players, such as The Jersey Association of Trust Companies, representing two-thirds of Jersey Trust Companies.
3. Building a modern and resilient registry
Engagement with local businesses
We made ourselves available to local businesses, shared videos on our social media channels, arranged drop-in sessions, organised call-backs and set up a dedicated mailbox to ensure we could help as many local businesses as possible.
The Registry during the pandemic
Our senior Registry team led through challenging times and delivered what was required, whilst putting the needs of the team and businesses in Jersey first.
Jersey was one of a few jurisdictions globally that kept
their Registry open for business during the initial
Covid pandemic lock-downs. We ensured this happened
by splitting the team into three and using the digital
infrastructure to work remotely.
Applying the Financial Services (Disclosure
Our senior Registry team led through challenging times and Provision of Information) (Jersey) Law
and delivered what was required, putting the needs of 2020 ("the Disclosure Law")
the team and businesses in Jersey first.
The Disclosure Law came into force on 6 January
Key deliverables included: 2021 and required all companies, partnerships, and
foundations to have a nominated person with a nexus
> Delivery of a strategic platform in support to Jersey. Beneficial ownership data is re-confirmed
of Jersey s upcoming 2023 MONEYVAL annually via a confirmation statement. Associated party Part of any programme delivery is a lessons learned
24 Assessment, providing additional transparency data is collected centrally and, where appropriate (such review. We have undertaken several reviews during 25
of some Registry data for the first time; as director details), now made public. 2021 and continue to monitor, on an ongoing basis,
> myRegistry launched on 22 February 2021. The Disclosure Law also introduced new sanctions the progress of the programme. Early in 2021, a third-
In 2021 c.600K associated party data was for failing to comply with it. The Registry set up a party review was conducted by PWC on how well we
collected and vetted. Larger trust companies new Division (Registry Supervision) to supervise managed and documented our programme. From this
used the new API functionality to complete registered entities in accordance with these new review, we are improving some of our programme Where volumes and service levels have required, the
this. myRegistry provided a balance between powers. Consequently, for the first time, Jersey entities reporting. Registry has, during 2021, expanded the number of
enhanced security and accessibility; (including entities not administered by a Jersey Trust personnel to meet this demand or obligation. Our
With the move to working from home, and as of 31 current Registry team has supported an increase of
Company Business) will be physically visited (under December 2021, a third of the Registry team was still
more than:
> Successfully delivered a significant a risk-based visit programme) to authenticate their not physically at the Castle Street office, and the use
implementation and complete data migration submissions to the central registers. The registers of incoming telephone services was restricted, causing > 15% in incorporations and registrations;
with no considerable data issues; were 98% compliant by 31 December 2021, with the some Registry users frustration. As part of our IT
> Supported Jersey Industry with 100% remaining 2% to be processed for strike off. transformation project for 2022, it is scheduled for an > 100% in SPVs and high-risk applications;
availability during working hours, regularly upgrade. > 40% in total submissions; and
working out of hours to achieve this - with at
least eight out of hours deployments providing Constant improvement and review > 50% in associated party records.
additional Industry functionality, enhanced Growth of the Registry and meeting demand
entity Search capability and API connectivity; The journey to what good looks like for our digital In the future, we will continue to strengthen the team
Registry, as defined at the start of the programme, With the new digital registry system in place as of at all levels as we complete the delivery of the digital
> Supported the successful implementation continues and, as of 31 December 2021, with 100% February 2021, the Registry team and Registry users Registry. The Registry Supervisory function will take
across both the regulated sector and local delivery of Phase 1 of the transformation project. had to adapt to this new system. At the same time, a more prominent role in ensuring Registry data is
users for 35,000+ entities; and getting used to the new system and dealing with a accurate, adequate and timely. We will also continue to
The remainder of the program (phase 2) will see us significant increase in communications due to the new monitor resourcing needs to deliver a customer-centric
> Provided Industry outreach sessions, webinars, delivering a range of enhancements and new features to system being introduced and the increase in volumes service that meets our service levels, and this will be
Zoom training sessions and one to one client the myRegistry platform, as well as the addition of LLCs (which continue from the growth in 2020), the Registry further supported by the implementation of a new
support by phone and face to face. to the Registry throughout 2022. was still able to meet published service levels. telephony system to handle greater number of clients
enquiries.
Our strategy
refresh
26
An important milestone
for us was the launch in November 2021 of our three year strategic framework to take us through to 2024. It built on our roadmap published early February 2020.
It ensures we are fit for
purpose within a changing
international landscape, and
can support Jersey to remain
a competitive, successful and 27 well-regulated International
Financial Centre. The process
to develop the vision, top
strategic priority and three
strategic anchors distilled our
thinking and sharpened our
collective understanding of our
purpose.
Our Vision
To be a high performing regulator, building for the long-term success of Jersey.
Our vision seeks to galvanise and motivate our team, and provide clarity and context for our stakeholders
> It reflects our commitment and contribution to the success of Jersey
> We are invested in building long-term success which reflects that our plans have longevity
> High performing requires us to be active, alert, and hold ourselves to account
How we delivered our strategy our core projects
Core projects | Goal | Facilitate business integrity | Harness technology and influence the digitalisation of financial services | Develop our people, systems and capability to be a high performing organisation |
Enhancing and simplifying our regulatory toolkit | Delivering increased Industry engagement and outreach on existing and new obligations |
Our top strategic priority TIndustry understanding, wo support bee will increase Industry tter
engagement and
Achieving sustainable, long-term excellence in regulatory effectiveness, and increased capability for Fighting and outreach on existing and
28 new obligations 29
the Island in combating financial crime. preventing financial
crime together
Preparing for
forthcoming
international
assessments by Our strategic anchors
MONEYVAL
Leverage modern data,
process and security
Three strategic anchors provide the lens through which we make our decisions: Investing in our capabilities to secure
operational efficiencies
> Facilitate business integrity technology and data and enhancements. This analytics to operate will include automated Harness technology and influence the digitalisation of Financial Services even more effectively vetting and expansion
> of straight through
processing
> Develop our people, systems and capability to be a high performing organisation
Strengthening our risk Enhancing framework
Our strategic KPIs embedding Tfor incrneailoring our risk models w regimes/business eased scope and
our regulatory
effectiveness by
risk-based sectors
We have established an initial set of key performance indicators which will enable us to monitor and choices and report on progress towards our strategic aims. The measurement and assessment of these KPIs expanding our Identifying higher risk
regulatory remit businesses through conducted internally in 2022 will allow us to validate the appropriateness and effectiveness of the acquiring better data
scores and provide a valuable baseline for subsequent publishing in our 2022 annual report.
Recruiting, retaining and People strategy
developing great talent
Beyond the key
projects
30 31
The below overview shows the level of applications supported by the authorisations team in 2021.
Area 2019 2020 2021
Alternative Investment Fund Services Business 12 14 8
Auditors 5 7 3
Banking 1 0 1 In addition to the applications
Collected Investment Funds 30 28 35 processed, the authorisations
team responded and logged
CoBO 61 77 104 the following numbers of
Fund Services Business 25 18 23 engagement during 2021:
General Insurance Mediation Business 8 1 2 > 275 procedural and
Investment Business 3 1 3 technical queries;
Insurance 6 7 2 > 171 notifications;
Jersey Private Funds 121 117 150
> 104 changes (mainly to
Money Service Business 1 1 3 funds);
Non-Profit Organisations 45 21 56
> 63 Heads Up
Other 3 0 0 (something due to
Schedule 2 Business 33 29 33 happening, often
including a query);
Trust Company Business 20 18 11
TOTAL 374 339 434 > 153 documents (usually
an updated prospectus /
Licence and CIF Revocations 298 279 238
Beyond our
PPM for a fund).
32 key projects 2021 Examination Activity 33
Number of Examinations by Sector
Trust Fund Money
sections of the Handbook. In two financial crime Company Services Investment Service Schedule examinations, there were no findings. Approximately Examination Type Number Entities Banking Business Business Business Business 2 Business
Supervision
73% of the findings related to non-compliance or partial Financial Crime 25 96 4 10 7 3 0 1 compliance with the statutory and AML/CFT code Thematic 34 34 1 19 11 2 0 1 requirements; specifically in relation to the roles of the
MLCO and MLRO, reporting suspicious activity, delays Supervisory Risk 9 9 1 3 2 2 1 0 During 2021, the Supervision Examination Unit in monitoring activities such as compliance monitoring Questionnaire 116 116 7 33 14 16 5 41
conducted nine entity risk examinations. Three plans and periodic customer reviews. The most common Tota 184 255 13 65 34 23 6 43 examinations resulted in positive outcomes with either findings are in regard to out of date, obsolete or
no or minimal findings identified. For the remaining, ineffective systems and controls (including policies and
a range of statutory and regulatory requirements had procedures). The remaining findings related to Board Number of Examinations by Number of Supervised Entities by
either not been complied with, or had only partially been responsibilities, compliance monitoring and conflict of Industry Sectors Examination Type
complied with. interests.
Thematic examinations were conducted in respect A number of webinars supported the examination Banking (13)
of enhanced and simplified customer due diligence feedback papers issued, giving Industry the opportunity
measures and exemptions, customer risk assessments, to pose questions in regards to complying with the Trust Company Business (65) Financial Crime (96) ongoing monitoring and the legal sector. regulatory framework. Fund Services Business (34)
Thematic (34) Through the Financial Crime Examinations Unit, a Questionnaires were issued to support the enhanced Investment Business (23)
Supervisory Risk (9) sample of 24 regulated Financial Services Businesses and simplified customer due diligence measures and Money Service Business (5)
(96 relevant persons) and one Schedule 2 business exemptions, and customer risk assessments thematic Questionnaire (116) were selected to be examined in 2021. The review of examinations. We also issued questionnaires to Schedule 2 Business (43)
the 25 businesses resulted in our officers highlighting understand Industry s use of Electronic-ID, the methods
146 findings to those entities concerning the relevant used for transaction monitoring, and to train employees.
Beyond our key projects
Enforcement
34 35
Enforcement policy Intelligence
In 2021, we consulted on proposals to revise the The Intelligence team continued to work closely with Operations
Decision Making Process (DMP) we follow when taking local law enforcement agencies and international The Enforcement Operations team dealt with 94 administrative action that could result in imposing a regulators to ensure that we exchanged intelligence cases in 2021, primarily arising from referrals from the regulatory sanction, such as a civil financial penalty. in a timely manner. In 2021, 631 internal intelligence
reports were compiled and shared with our Supervision Inofteelxliamingencaet ionteam,act Superivitiesvision (in) and requecluding sts foro utassiscomtanesc e Conunnecceren hssarad been ily lenget xprhy anessd,ed in tcherat tainthe r DMP hespectas,d becomquite e take action to manage AML/CFT and regulatory risk in fon unrom oavuterhsoreaissed agfinenanciecs.ial sMoerstvicinveess prtigoavidertionss,f noon-cused
teams to assess and, adopting a risk-based approach,
ceumberssence,som theepraso ac eresssulwta os f n roetvisions as effic mienadet a os v i ert cotimul e.d be.In Jersey. compliance with Jersey s AML/CFT regime and
We recognise the importance of intelligence for our inadequate internal systems and controls.
Our consultation sought feedback on revisions to the own regulatory and supervisory activities and that of
DMP designed to make the process more efficient for overseas regulators and supervisors. Over 2021, the The Intelligence team s efforts in policing the
both us and those businesses and individuals whose Intelligence team disseminated 216 intelligence reports perimeter resulted in a more significant number of cases go through it, whilst, importantly, remaining a to 79 overseas agencies in 39 different jurisdictions. enforcement cases in this area, ultimately disrupting fair process. In particular, the revisions ensured that the unauthorised activity or regularising the position. the relevant business or individual would continue to We increased our focus on protecting the public from We published several warnings to the public against receive a full and fair review before the persons who unauthorised financial service providers, including dealing with those unauthorised service providers we would decide their case. scam entities. considered to be scams.
We were grateful to receive a significant number of This focus saw us undertake a great deal of work on In support of our objectives of reducing risk to
responses to the consultation and the constructive policing the perimeter matters, identifying and taking the public of financial loss and protecting Jersey s Regulatory codes of practice
feedback provided, which assisted us in refining our action against activities not authorised by us. reputation, we took regulatory action against Mr
proposals. We published the final version of the revised Gufur Hussain, a former independent financial advisor. In line with our guiding principles to protect and DMP in February 2022. The Intelligence team also reviewed and implemented Following an investigation into Mr Hussain s conduct enhance the reputation and integrity of Jersey in
changes to its primary database to improve its data and concluding he lacked integrity, we issued directions financial and commercial matters, we levied three During the year, we also assisted the Government of collection capability, which has resulted in more preventing Mr Hussain s employment in Jersey s finance civil financial penalties for negligent breaches of Jersey with developing legislation to extend the scope detailed management information for the oversight industry without our prior written approval. We also the regulatory codes of practices. The findings were of our civil financial penalties regime to ensure that it of Enforcement activities and assessment of the issued a public statement detailing the investigation published on our website.
meets international standards. effectiveness of Enforcement outcomes. and conclusions drawn in May 2021.
projects
Foundational projects that supported the successful delivery of work across the key projects and beyond
Conduct and Prudential
Alongside our work on combating money laundering We also progressed in 2021 our work on enhancements
and the financing of terrorism we have continued to to the Investment Business regime, in particular in
progress conduct and prudential matters in a number of relation to the Client Assets Order (amended in 2022)
policy areas. and preparation for requirements in relation to persons
36 2021 started with the issuing of the amended arranging for retail investors to buy/sell investments 37
and enabling provisions in relation to requirements for
Alternative Investment Funds (AIF) Codes of Practice
Investment Exchanges.
ensuring the continued functioning of Jersey s AIF
legislation beyond the UK s exit from the European We have also continued to progress our plans to amend,
Codes were amended to preserve the status quo and Sustainable
Union (EU) on 31 December 2020. The updated AIF where appropriate and proportionate, our banking
rprudenegime tfialor athcetivirequirties enemablingents o complianf Basel III.ce professionals Finance
ensure business as usual notwithstanding the UK s exit
from the EU. A particular focus in 2021 was on our conduct and
Throughout 2021, we worked with Government to be as effective as possible. We know that a specific
and Industry colleagues on preparing legislation cause for concern for both us and the Industry is the
to modernise Jersey s Limited Partnership Law in availability of the highly-skilled people that Jersey In 2021 we further progressed our sustainable finance best practice for the development of environment and
particular its winding-up provisions and continued our needs to maintain a strong compliance culture. During work, identifying the initial priority as implementing climate risk management. In 2022 we are leveraging
work with Government and Industry on the preparation 2021 we worked collaboratively with Government, regulatory changes to mitigate greenwashing. these relationships and networks to prioritise the
of the Regulations that are required to bring into force Jersey Finance, other Industry bodies, and the Jersey changes we make to maintain equivalence with
the Limited Liability Companies Law in 2022. Employers Group to support an initiative to provide We engaged with Industry and global experts to deliver practical and commercial enhancements, reflective
a better way of identifying and supporting the disclosure based code of practice requirements for of our role as a regulator in an international finance
In 2021 progress was made with Government on the development of future compliance professionals, which funds and advisors that are pragmatic and commercial. centre.
shaping and developing new regulatory regimes A key strength of our method is that it incorporates
we will continue into 2022 and beyond. In 2021, we
in respect of Pensions and Consumer Lending. the use of global taxonomies, future proofing the
also commenced foundational work on consolidating
We assisted Government on preparing legislative requirements in what is a rapidly evolving area.
our conduct and prudential Codes of Practice and our
amendments so that investment advice, in particular
requirements, such as the Jersey Private Fund Guide. 2022
Licensing Policies and a review of other key regulatory We then targeted key memberships to global and
to retail consumers, on Jersey pension schemes will in
2022 be subject to JFSC supervision. local peer groups. We joined the newly formed local
This work is to support businesses in simplifying group Jersey for Good A Sustainable Future, and
our regulatory requirements and assisting our staff also applied for and were accepted into the Network Mitigate key risk Accepted into Informed and
In the latter part of 2021, we played a key part in to supervise effectively with greater clarity, less for Greening the Financial System (NGFS). The NGFS Greenwashing Key Networks Aligned Progress
supporAuthorittingy. I tt hwea ss epart-uptic oulf arth ley J imporersey t Rane ts oltoutensurion e that duplication, and more certainty about our rules. is an important global network of central banks and Global and Local Appropriate for
we would have an effective working relationship with financial supervisors where members share ideas and an IFC
this new and independent Jersey authority, which was
established at the end of January 2022.
Beyond our key projects
Foundational projects that supported the successful delivery of work across the key projects and beyond
Innovation Hub
Our Innovation Hub was established to ensure open > Participated in 62 separate engagements and
and active engagement with businesses innovating events focussed on innovation in financial
within financial services. We did this by providing a services in Jersey;
direct and dedicated point of contact for all businesses,
regardless of whether they are start-ups or incumbents. > Began developing our in-house knowledge
Through the Innovation Hub, we have identified and and broader skill sets across our organisation.
responded to emerging risks and opportunities for the This included developing how we share and
Island. It continues to help us understand developing collaborate across all divisions to support
38 technologies that are of interest to financial services innovative products and services; 39
businesses. We have continued to receive an increase
in enquiries year-on-year from all different types and > Continued to monitor the evolving landscape
sizes of business. for insights and supported the application
process for a number of businesses offering
2021 continued to present challenges for us all, but also virtual asset services to their clients and
opportunities as evidenced by the continuing growth investors; and
in enquiries. We met the commitments in our 2020
Innovation Hub Report and remain dedicated to building > Remained available to Digital Jersey and Jersey
a sustainable regime for innovative financial services Finance members as they collaborated on their
activities in Jersey. journeys toward digitalisation.
Some of the key highlights of 2021 include: We received 37 direct enquiries to the Innovation Hub
with the remainder received from other Jersey-based
> 77 enquiries responded to, spanning all businesses. We supported 21 referrals from Digital financial services sectors; Jersey, Jersey Finance and Locate Jersey. On average, we responded to each enquiry (provided those enquires
> We began to explore the barriers to adoption of were not seeking incorporation and/or a regulatory Regulatory Technology (RegTech) in Jersey s licence) in less than two calendar days.
financial services markets in order to better
stimulate and encourage the adoption of We have continued to engage with a broad range of RegTech in Jersey; innovation enthusiasts around the world, including
academics, Industry representative bodies, other
> We continued to be a member of the Global regulators, governmental agencies and regulatory Financial Innovation Network supporting the groups. On-Island, we have remained available and RegTech and cross-border testing projects; engaged with businesses who want to engage with
the Innovation Hub and have contributed to a number of events and workshops with a Jersey focus. We look forward to building these relationships further in 2022.
Beyond our key projects
Encouraging our people to live sustainably
Even though we have adopted a hybrid working policy Supporting people with a learning disability
with some of us working from home and some from We continue to support Jersey Mencap with their
the office during 2021, colleagues still kept green activities, in particular with The Pond Project which we
initiatives high on their agenda. Despite activities being visit yearly to help maintain walkways and accessibility.
40 limited due to the Covid-19 restrictions, we arranged We also donate towards the costs of outbuildings and 41
Committing to Environmental, sustainably.
socially distanced beach cleans and held a vegetable tools for members.
growing competition to encourage staff to live more
Social and Governance Educating young islanders about financial principles (ESG) WwaenaBicecotconer boyurcaglteinteEtuel smpletttaoof o f cgivyut bat eeo e b Beuyvenc erk a bikeyon plfitmSembere,ca shsotemicth useoe fyt eos t tanrsupporaa fvd infel ba rt eyr tofiltanducwlabldoed e liitteerraaccyyto meet the Jersey PSHE Curriculum for
Our Policy team has devised courses in financial
wheels rather than four. students aged between 11 and 18 years across local
We are committed to becoming a more sustainable organisation and minimising our environmental secondary schools.
impact. In 2020, we reduced our carbon footprint by operating a zero printing policy while working Promoting diversity and inclusion As we were not able to go into schools, we adapted the from home during the pandemic and this continued in a more limited way, into 2021. As life starts programme and provided digital content to teachers so
to return to normal and restrictions are lifted, we have examined business travel and where we can We approach recruitment through a diverse lens. Our they can deliver classes where possible.
continue to hold virtual meetings, thereby reducing our emissions. Even in the office, when we do aim is to create an environment for our people that is
fair and free from discrimination. We demonstrate this
print, 10p from every ream used goes to support Jersey Zoo. through various staff activities, forums and proactive Making a difference
For many years, we have made environmental issues a priority. We have made small but important policies, and by supporting initiatives such as the 2021 was a year where we continued to deal with the
Government s Back to Work and Advance Plus schemes, difficulties of a pandemic. Irrespective of their own changes in the office, such as switching to light-saving LED bulbs, ensuring lights and equipment which help people with different employment needs to challenges, our staff made it a priority to continue to
are turned off when not in use, and using recycled paper for printing and recycling bins for waste. find work. support local charities and initiatives. While fundraising
efforts were not straightforward, we still managed to
After more than a year of remote working, Ourreac fhemed al 50:50.e-to-m57%ale roaft ioourofwoorurkEforxecceutanivde Bteamoard is raise much-needed funds for local causes and charities
we are looking to change our office We are committed to female. During the year, our female leaders gave including JSPCA, Jersey Hospice Care, Jersey Woman s environment so that staff have more becoming a more sustainable talks and shared blogs with our staff, made editorial Refuge and Mind Jersey.
flexibility. Sustainability and energy contributions for local publications, and took part in
efficiency will be central to our plans for organisation and minimising public speaking engagements to open debate about Thstaankff csanto dedicour coratepor up a ttoe stwoco ial r dayes sponsibili every yearty t polico y,
our environmental impact. diversity and inclusion (D&I) in financial services. venolvirunonmteeren fortal prtheirojecchots.sen charitable causes or
this refurbishment work.
Beyond our key projects
Foundational projects that supported the successful delivery of work across the key projects and beyond
Our Risk Framework
Identifying, assessing, and responding to internal and external risk factors is a core skill set as a regulator and crucial in delivering on our three year strategy.
2021 has seen continued progress on several key initiatives to enhance our overall approach to managing internal and external risk.
42
We identified gaps in resource and progressed to the recruitment of a Director of Risk who commenced early 2022. This further supports work ongoing to enhance the overall risk culture and conduct within the organisation.
Enterprise Risk Management Framework Managing principal risks and uncertainties
Our Risk Model - Background
The Risk Model is the culmination of the integration of our case management system, rules engine and data visualisation platforms. It allows supervisors to capture and record risk information arising from their activities, assess those risks in a consistent way, and then manage any activity needed to reduce risks back to a level that the we are comfortable with. The rules engine is configured with a number of parameters that are triggered by the supervisor or by automated processes to calculate risk exposure. This information is then used to create new risk models and provide risk insights
on authorisation of new entities, assess risks arising from on-site examinations or from other supervisory engagement and from information and intelligence received from a range of sources. All of that activity is recorded in a structured way that produces a wealth
of data on our supervisory activities, risk assessments and effectiveness. Our data visualisation tools provide unique insights at entity, sector, market and individual risk levels, alongside other insights from the risk data being created by our case management system.
As we continue to develop the Risk Model through its phases, each iteration of the model will build additional layers of functionality, ultimately moving towards the goal of having a risk model that offers increasing levels of automation and predictive analytics as a driver for allocation of supervisory resources.
In terms of our Strategic Roadmap to 2023, the continuing development of the Risk Model has a major role in delivering even more effective supervision (particularly in moving away from a fixed engagement model to more dynamic approaches) and in embedding risk based choices throughout our work.
Risk Model Development and Data Insights
Hand-in-hand with
the enhancement
of our Enterprise
Risk Management Framework has been
our focus on pro-actively identifying, assessing and responding to principal risks and uncertainties.
remediation allows us to produce a clear view of the effectiveness of both regulated firms and ourselves in managing risk. This will be a vital component of telling a positive story internationally about Jersey s finance industry and its regulation.
In addition, 2021 also saw a further expansion of the
levels of automation embedded in the Risk Model. The automation of risk assessments linked to reported
43 breaches and as well as findings from our programme
of examinations, both positive and negative, add a layer
of consistency in our assessments as well as delivering significant efficiencies to our key regulatory processes.
We intend to continue our focus on understanding financial crime risks by delivery of enhanced calculations of the risk in line with the latest FATF guidance on risk-based Supervision.
In 2021 we continued with developments and enhancements to our Enterprise Risk Management Framework to ensure this was more closely aligned
to Industry best practice and commensurate with
the nature and size of our business and the risks. Improvements have provided a more robust framework for identifying, assessing and responding to critical risks and prioritising managements time and mitigation efforts.
Supplementing this with insights gained from other data sources allows us to be more forward-thinking in the risks we might encounter. We expect this approach to continue to mature in 2022, hand in hand with
the continued digitalisation and automation of our underlying systems and processes.
Work is also ongoing in developing our operational and regulatory risk appetite, pending the release of the National Risk Appetite by the GoJ.
Hand-in-hand with the enhancement of our Enterprise Risk Management Framework has been our focus on pro-actively identifying, assessing and responding to principal risks and uncertainties. Uncertainty is at an all-time high, and appropriate management of these risks through our regulation and supervision of Jersey s financial services businesses and internal operations is critical.
Whether it be our ongoing preparation for MONEYVAL; strengthening the way we collect, store, analyse and use data; advancing our systems and architecture; dealing with unexpected events or crises; ensuring we continue to retain and attract talent, and managing employee well-being; enhancing our Cyber resilience or leading in the management of Environmental, Social and Governance risk management, our approach and capability are being continually reviewed, tested and improved.
Throughout 2021 we continued to develop our Risk
Model, building on the second iteration we completed Risk Reports:
in February 2020. The latest phase of development has
seen the Risk Model and the systems it is integrated > 895 Risk reports captured by our Supervision with, migrated into a cloud based environment. This team, 2,100 individual risk assessments provides a scalable and future-proof platform for
further iterations to the model that will help us keep > 1,104 Breaches of the regulatory framework pace with the constantly changing nature of Jersey s
international financial services industry and its
regulation. Breakdown of the risks:
Alongside this work, supervisors continued to work > 41% Governance, risk and compliance issues; with our existing model adding over 2000 new risk
assessments in 2021. This has contributed to increasing > 33% Financial crime controls
the wealth of data already captured and produced,
and with building a picture of risk at entity, sector > 12% Conduct of business controls
and market level. The ability through our systems > 6% Prudential controls
to individually track all remediation actions and
associate them with a picture of risk both pre and post > 8% Other (such as business model, structure)
Our people
44 45
Our people
Our staff are at the core of what we do
Like all organisations, our staff are at the core of what we do and it is essential that we recruit well and retain great talent. Only by getting this right will we deliver on our vision to be a high performing organisation building for the long-term success of Jersey.
People Strategy
In 2021 we spent time engaging with our people to
define our People Strategy fit for a high performing As a result, our strategy focuses on three pillars:
regulator. We undertook a review which identified areas
46 to focus on to deliver on our ambition: Engagement: Developing an engagement strategy to 47
enhance the voice of our people to shape the future
> Critical skills gaps that we needed to buy in of our culture, understanding development needs and
whilst we build capability, including key areas where we can improve, has already resulted in our
such as data and analytics people having input to align and refresh our values,
and heighten communication via weekly vlogs from our
> A pro-active recruitment programme with a Director General to share updates with staff.
strong pipeline of talent
> Clear succession planning, particularly at a Engaging with our People
leadership level Foundations: Creating a Service Centre of Excellence
> A strong employer brand to attract and retain finortroourducpeopling nee wthr soouftghwardiegittoalempotranswfer ormour peoplation aned to Edurnging 2021.agement T wrueas ra et silienthe h ceare wt ao sf shour o wn Peoplfrom e S altra l arte eagys
talent; and manage their own information online, was delivered
of the business, with our people transitioning from
working from home to working in the office or in many
> Further resourcing agility to support career in the last quarter of 2021. Further development is
cases both.
development and meet the needs of the required during 2022 and 2023.
organisation
Feedback from our happiness survey results, focus Development: Developing our people and creating Senior Leadership
groups and our leadership team, all fed into the capacity for the future is key to remaining a high During 2021, we spent development of our people strategy. We developed performing regulator. Our Strategic vision of The focus on hiring for critical areas has resulted in the
that we continue to enhance our employee value beingdevelopm leaendert sanodf csuchoicceessionwill drplanningive our laeat alderl leshipvels of conon tthineuedrecruidelivtmerenyt ooff othure sDtirraectetgory ,Genwitherparal, tDicirulecartor fo ocfus time engaging with
a three year strategy from feedback to ensure
proposition, define and align our values and create clear our organisation. Central Operations, three director roles in Supervision, our people to define development paths for people at all levels to recognise DCulirecturtore. of Risk and Executive Director of People and our people strategy fit
the contribution of our people in achieving our strategic Overall our People Strategy is a critical component to
vision for the long term success of our people and of how we build a high performance culture, fostering a Over the course of 2021 and as we continue over 2022, for a high performing Jersey. growth mind-set and providing staff with the support, we have increased the strength of our senior leadership
opportunity and tools they need to enhance their team by seven directors. regulator.
careers.
Finance and
resources
48 49
Finance and Our retained liquid assets resources is £10.5m which is a positivposition at the end othe established targef 2021 t oe f
position to be in relative to
£8.5m in the midst of ongoing In 2021, we recorded a surplus of £0.3m (2020: £2.4m). Our surplus was £2.1m lower than 2020 due significant projects and
tThese operating cost incro a reduction in total income oeases principally rf £0.3m combined with an increlate to a one-off impairment oease in operating ef intangible assexpenses of £1.8m. ts of capital investment. £1.2m and increases in staff costs (£0.4m) and computer systems costs (£0.3m).
We had budgeted to break-even in 2021 but lower than planned expenditure in a number of areas partly due to Covid-19 offset by the un-budgeted impairment gave rise to the £0.3m surplus. As a result, our reserves increased to £9.4m.
Income Capital expenditure
Total income in the year reached £22.5m (2020: Our focus for 2021, combined with our enhancements
£22.8m) following an increase in regulatory income and to our project governance, have ensured investment
a reduction in registry fee income. in only strategically important initiatives. As a result,
capital investment for 2021 of £2.3m was in line with
Regulatory fee income rose by £1.1m as a result of fee the planned levels.
increases to fund our capital investment programme
and further develop our capability to combat the threat The net book value of fixed assets decreased to £7.7m
50 of financial crime. Registry fee income decreased by the end of the year (2020: £8.5m) with annual 51
by £1m relative to the prior year as 2020 experienced depreciation and amortisation increasing to £1.9m
a one-off increase in the proportion of the fees (2020: £1.6m).
attributable to us immediately prior to the increase in
the Government proportion of Annual Confirmation
fees. The volume of annual returns received was Financial position and forward look
broadly consistent with the prior year.
Our financial reserves improved during 2021 to £9.4m (2020: £9.1m). However, following the completion of
Operating costs the financial resilience review, we have adopted a revised approach which focuses on retained liquid
Total operating expenditure increased by £1.8m (9%) to assets.
£22.2m.
This approach enables us to continue investing in Staff costs are the most significant item of expenditure, capital initiatives that drive efficiencies, while still representing over 60% of our cost base. Costs managing our operating costs effectively whilst increased by £0.4m (3%) compared to 2020, driven ensuring that, if a significant adverse event occurs, by a 17% increase in the average number of full-time we would retain the financial ability to continue employees to 177. Despite inflationary pressures, with business-critical projects, in addition to our average costs per head continue to reduce year-on-year normal regulatory and registry operations while
as we carefully manage our staff structure. Capital appropriate action is taken.
investments in prior years continued to drive increases
in the annual depreciation charge, however the majority In addition it allows us to make effective use of
of the increase in depreciation in 2021 relates to a our retained liquid assets to pre-fund valuable
one off impairment of £1.2m as we launched the new initiatives in their initial stages where the full supervisory platform. details of volumes and costs are unknown.
Our retained liquid assets position at the end of 2021 is £10.5m which is a positive position to be in relative to the established target of £8.5m in the midst of ongoing significant projects and capital investment.
Governance
statement
52 53
Governance wicultthurealxt ensivand oregeanisxperaientioncealmcanhangaginge in tlreaansdingfor mfinaantioncialal
statement sTherevicBoear secd mtoret fireighms.t times during 2021 to consider ACaBos tarBa rhoderearmsulin d Appreeet Wtoingf atBssoonenfarord Apprjointica y eedearPrenth ofer grtomicCommissionammesQ2 I WILL2 e021 iniaers tas ia fB toroivar e,d
Apprentice.
Board meetings and attendance
strategy, risk and regular business. All Board Enforcement matters
members attended all eight meetings except for one
Commissioner, who retired in 2021 and one who was The Board spent significant time on a number of
Constitution appointed in late June 2021. enforcement matters that arose through the application
of the Commission s DMP and civil financial penalty
The Jersey Financial Services Commission General, no individual has unfettered power of decision- The Board also met several times in 2021 to review and cases. Such cases tend to be highly complex and
(JFSC) is a statutory body established making, and there are transparent procedures for the consider Enforcement settlement cases and contested involve the actions of regulated persons over a
under Article 2 of the Financial Services appointment and re-appointment of Commissioners. matters. considerable time.
Commission (Jersey) Law 1998 (Commission Law) In addition, the Commissioners and the Executive met
which provides that we are governed by a Board of for a strategy day and participated in events with fellow
Commissioners comprising persons with financial Delegation of powers regulators, Industry representatives and Government Nomination Committee
services experience, regular users of such services and ministers.
persons representing the public interest. The Board delegates its powers to the Director General The Nomination Committee is responsible for reviewing
and the Executive Board, where possible, to ensure that Regular discussions took place over the year with the the structure, size and composition (including the
we can act and respond without undue delay. However, Government regarding significant financial services skills, knowledge, experience and diversity) required of Accountability arrangements in some areas, the power of the Commissioners to matters and planning for the MONEYVAL assessment. the Board and makes recommendations to the Board
delegate is restricted by legislation. For example, concerning any changes. The Nomination Committee
We are an independent body, accountable to the public the Board acts similarly to a Tribunal in relation to Board members consider carefully the potential for oversees the recruitment process for Commissioners
through the Island s elected representatives, the contested Enforcement cases. Consequently, the conflicts of interest to arise and excuse themselves and the Director General s direct reports appointments
States of Jersey. The relationship with Ministers is set Board is more involved in some areas of detail than the should any perceived or actual conflict be identified. to ensure it is in accordance with the Jersey
out in a Memorandum of Understanding to ensure our Board of a listed or private company. A full explanation Appointments Commission (JAC) Guidelines.
independence, whilst facilitating effective dialogue and regarding the Delegation of Powers can be found on
54 working practices. Article 12 of the Commission Law our website www.jerseyfsc.org. Board activity Creating an inclusive environment where all types of 55
diversity are valued is essential.
provides that the States of Jersey may give us general
directions, subject to significant safeguards. The Board maintains overall responsibility for our The Nomination Committee met four times in 2021.
governance, setting strategic aims and supporting the
Composition of the Board and appointment of Mark Hoban chairs it, and the other members are
In 2017, an Article 12 Direction was issued in order for Executive leadership team to put them into effect. They
Commissioners Monique O Keefe and Annamaria Koerling.
the Exchange of Information on Beneficial Ownership also hold the Executive accountable within the scope of
(BO) agreement with the UK to be implemented to allow The Board currently consists of the Chair, Deputy the Commission Law and the powers that we have been In 2021, its principal activities were recruiting a new
the Island s Joint Financial Crimes Unit (JFCU) access Chair and seven other Commissioners, including the granted under that Law. The Board also oversees the Commissioner to replace Ian Wright and to put in place
to our relevant information and databases on BO. The Director General. Over half of the Commission Board is running of the Board Committees. interim arrangements for the executive leadership of
intention is that the Direction will be withdrawn once female. All of the Commissioners are considered to be the Commission following the resignation of Martin
appropriate substitute legislation has been enacted. independent, except for the Director General. A chart of The Board plays a crucial role in listening to Industry Moloney as Director General. In the autumn of 2021,
the current Commissioners is set out on page 86 of this to understand current trends and international the Committee started recruiting a permanent Director
We produce a Business Plan annually and separately Annual Report, and further information on their skills, developments, and it is actively seeking to improve General.
an Annual Report to inform members of the States our interaction with Industry. The Board fully supports
Assembly and other stakeholders. We consult knowledge and experience is set out on our website.
strategic engagement with Industry bodies.
extensively on all proposals to create or amend laws and
regulations and provide feedback statements to explain Several presentations were made to the Board by the Audit Committee
how responses were taken into account. Retirement of other Commissioners Executive during 2021 on the supervision of entities and
the various financial sectors and policy development The Audit Committee is responsible for monitoring
Commissioner Wright completed nine years of service and Registry matters. The Board also received internal financial control systems and working with
and retired in 2021. regular, detailed updates on our preparations for the the Executive and the external auditors to ensure the Governance arrangements forthcoming MONEYVAL assessment through regular quality of the management financial reports and the
The Board believes that high-quality, effective updates from the Executive regarding our Financial annual accounts.
governance arrangements are essential for well-run Appointment of Claire Bowes Crime Prevention Capability Programme, which it The Committee met seven times during 2021. It is
organisations. As there are no comprehensive Codes continues to monitor closely. chaired by Matt Palmer, whom Peter Pichler and Simon
or Standards for the governance of a financial services Following its review of the Board s skills gaps, In addition, the Board worked with the Executive Morris join as members.
regulator, the Board considers that the UK Corporate a recruitment campaign was run in 2021 for a
Governance Code (Code) is an appropriate benchmark. Commissioner with an HR/People background. The Director s Committee during 2021 to progress our risk Its principal focus in 2021 was to play an active role,
Board then worked within the Jersey Appointments work and produce our overall strategy and people liaising with the Comptroller and Auditor General in
We comply with the majority of the principles in Commission guidelines to progress the search. The strategy. searching for an appointment for our new external
the Code; for example, there is a clear division of appointment of Commissioner Claire Bowes was made auditors.
responsibility between the Chair and the Director on 28 June 2021. Claire Bowes is a global HR leader
Governance statement continued
Remuneration Committee oversees and guides the Executive Risk unit as we further develop our risk-based supervision strategy.
The Remuneration Committee is responsible for The Risk Committee advises and partners with the keeping under review the pay and bonus arrangements Executive to fulfil the Executive s accountability to the for the Director General and our staff, in line with the Board regarding risk management.
performance management framework and the fees paid
to the Chair and other Commissioners. Tracy Garrad chairs the Committee, and its members
include Peter Pichler and Matt Palmer, all with a wealth It also provides advice and counsel to our Executives in of experience in Risk Management.
the production of HR policies and practices to support
strategy and promote long-term sustainable success The Risk Committee met five times in 2021 and
and staff well-being. principally spent its time working with the Executive
on the further development of our Risk Model and Commissioner Annamaria Koerling is Chair of the governance and the development of risk appetite
Remuneration Committee; she is joined by Monique statements.
O Keefe, Mark Hoban and Claire Bowes as members of
the Committee.
The Committee met on four occasions during the year. Auditors
Certain members of the Executive and the Head of
the Human Resources team attended the meetings as Grant Thornton Limited (Auditors) undertook the annual required. audit, being appointed to replace BDO.
The principal focus of the Committee was to pay close
56 attention to staff working conditions and welfare Director General remuneration
during 2021 in the continuing response to the COVID-19
pandemic. Martin Moloney was not paid any fees in his capacity
as a Commissioner but rather was paid as an Executive Director in his capacity as Director General. For 2021, he
Risk Committee received £304,094 (2020: £300,958) which comprises fixed remuneration: £264,498 (2020: £261,362) and
Responsibility for risk and risk management remains variable remuneration: £39,596 (2020: £39,596).
with the entire Board. However, the Risk Committee
Board meetings and attendance 2021
Commissioners' Board Audit Remuneration Risk Nomination Mark Hoban (Chair) 8/8 - 4/4 - 4/4
Monique O Keefe | 8/8 | - | 3/4 | - | 4/4 |
Simon Morris | 8/8 | 6/7 | - | - | - |
Tracy Garrad | 8/8 | - | - | 4/5 | - |
Annamaria Koerling | 8/8 | - | 4/4 | - | 4/4 |
Peter Pichler | 8/8 | 7/7 | - | 5/5 | - |
Matt Palmer | 8/8 | 7/7 | - | 5/5 | - |
Claire Bowes 4/4 - 2/2 - - *Claire Bowes joined the Board in June 2021 and Remuneration Committee in July 2021.
Commissioner Remuneration
Commissioners receive a fixed annual amount. No additional amounts are paid for participating or chairing sub- committees, dealing with enforcement cases or attending to other matters.
Fees paid to Commissioners were not increased in 2021.
2021 2020 Commissioners' remuneration
£ £
Mark Hoban (Chair - Appointed 2020) 150,000 115,269 Lord Eatwell of Stratton St. Margaret (Chair - Retired April 2020) 0 45,962 Martin Moloney (Retired September 2021) see page 56 0 0 Cyril Whelan (Retired June 2020) 0 13,000 Ian Wright ( Deputy Chair Retired April 2021) 9,834 33,350 Peter Pichler 26,000 26,000 Simon Morris 36,500 36,500 Markus Ruetimann (Retired September 2020) 0 25,597 Annamaria Koerling 36,500 36,500 Monique O Keefe ( Deputy Chair Appointed 21 April 2021) 32,182 26,000 Tracy Garrad (Appointed February 2019) 36,500 36,500 Claire Bowes (Appointed June 2021) 13,300 0 Matthew Palmer (Appointed September 2020) 26,000 8,667 Tota 366,816 403,345
Responsibility for Annual Report and accounts > Selecting suitable accounting policies and 57
applying them consistently;
This Annual Report and accounts comply with the
Commission Law s requirement to produce an Annual > Making judgments and accounting estimates
Report, and for it to be presented to the Members of the that are reasonable and prudent; and
States no later than seven months after the end of the
financial year. > Preparing the accounts on a going concern
basis unless it is inappropriate to presume that
The statutory obligations on the Commissioners are not we will continue in business.
extensive, requiring only that the annual accounts shall
be prepared in accordance with generally accepted The Commissioners have considered the financial
accounting principles and show an accurate and statements on pages 68 to 83, and are satisfied that
fair view of the surplus or deficit for the period and they show an accurate and fair view of the deficit for
state of affairs at the period end. The Commissioners the year and our financial position at 31 December 2021.
have elected to prepare the financial statements in
The Commissioners have considered the Annual Report accordance with Financial Reporting Standard 102
and, taken as a whole, confirm that they believe the
(FRS102), the Financial Reporting Standard applicable
Annual Report is fair, balanced and understandable.
in the United Kingdom and the Republic of Ireland.
For and on behalf of the Board of Commissioners Taking into account general practice, the
Commissioners confirm that they are responsible for:
> Keeping adequate accounting records
sufficient to show the financial position within
a reasonable period of time;
> Safeguarding the assets and taking L Roe
appropriate steps for the prevention and Commission Secretary detection of fraud and other irregularities; 7 July 2022
> Preparing the financial statements in
accordance with applicable laws and
regulations;
Independent auditor s
report
58 59
Independent
auditor s report Our approach to the audit The scope of our audit was influenced by our
Materiality
Audit scope
As part of designing our audit, we determined application of materiality. An audit is designed to obtain
materiality and assessed the risks of material reasonable assurance whether the financial statements To the States of Jersey misstatement in the financial statements. In particular, are free from material misstatement. Misstatements
we considered where the Commissioners made may arise due to fraud or error. They are considered
subjective judgements; for example, in respect of material if individually or in aggregate, they could
significant accounting estimates that involved making reasonably be expected to influence the economic
assumptions and considering future events that are decisions of users taken on the basis of the financial
inherently uncertain. As in all of our audits, we also statements.
addressed the risk of management override of internal
controls, including among other matters, consideration Based on our professional judgement, we determined
of whether there was evidence of bias that represented certain quantitative thresholds for materiality,
a risk of material misstatement due to fraud. including the overall Commission materiality for the Opinion We tailored the scope of our audit in order to perform finbelhelpedanowc.ialThussettsoae,tdeemtot gerenemintths eraes wi tah tewhhs qualicopeole a tsoastfiv eot eur o considerutaudiin tthane a dt tablions,thee
sufficient work to enable us to provide an opinion on the
financial statements as a whole, taking into account the nature, timing and extent of our audit procedures and to structure of the JFSC, the accounting processes and evaluate the effect of misstatements, both individually
We have audited the financial statements of Jersey Financial Services Commission ( the JFSC ), controls, and the industry in which the JFSC operates. and in aggregate on the financial statements as a which comprise the Income and expenditure account, Statement of financial position, Statement whole.
of changes in accumulated reserves, Statement of cash flows for the year then ended, and Notes
to the financial statements, including a summary of significant accounting policies. The financial
60 statements framework that has been applied in their preparation is applicable law and United 61
Kingdom Accounting Standards including Financial Reporting Standard 102 The Financial Reporting Overall materiality £387,000 (2020: £348,700)
Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted
Accounting Practice). How we determined it 1.75% (2020: 1.75%) of the JFSC s total revenue (2020:
average income over three-year period)
In our opinion, the financial statements:
Rationale for the materiality benchmark We believe that revenue is the key performance measure
> give a true and fair view of the state of the JFSC s affairs as at 31 December 2021 and of its and is a key metric used by the Commissioners in assessing and reporting on overall performance by the
surplus for the year then ended; JFSC. Surplus may not be a relevant benchmark as the JFSC is not a profit oriented entity rather a public service > are in accordance with United Kingdom Generally Accepted Accounting Practice; and provider. In line with these, any Statement of financial position items may also be deemed inappropriate to use > have been prepared in accordance with the requirements of the Financial Services as benchmark.
Commission (Jersey) Law 1998.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) and applicable law. Our responsibilities under those standards are further described in the Auditor s responsibilities for the audit of the financial statements section of our report. We are independent of the JFSC
in accordance with the International Ethics Standards Board for Accountants International Code of Ethics
Key audit matters
Key audit matters are those matters that, in our
for Professional Accountants (including International professional judgement, were of most significance in Independence Standards) (IESBA Code), together with our audit of the financial statements of the current
the ethical requirements that are relevant to our audit of period. These matters were addressed in the context of
our audit of the financial statements as a whole, and in the financial statements in Jersey, and we have fulfilled
forming our opinion thereon, and we do not provide a our other ethical responsibilities in accordance with separate opinion on these matters.
these requirements and the IESBA Code. We believe
that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Independent auditor s report continued
The key audit matter How the matter was addressed in our audit Risk 1 Registry income
Risk of fraud in revenue recognition Our audit approach included but was not limited to:
Under ISA 240 there is a presumed risk that revenue may We performed a walkthrough of annual
be misstated due to the improper recognition. confirmation fees posting on the Regsys system The risk is mainly around completeness and cut off of to understand the workflow from creation
revenue. through to acceptance and posting into the NAV
accounting system.
Completeness Risk
We then utilised data analytics to interrogate Due to the ad-hoc nature of some revenue lines, there is the Registry (ERS) system to obtain all annual
a risk that not all revenue transactions occurring during confirmations which were created and registered the period have been billed to the customer and recorded during 2021.
in the accounting records.
Transaction line items were then analysed to Cut-off Risk ensure that total fees for each submission
were in line with the published fees on the JFSC The main revenue streams of the JFSC are regulatory website (generally £220 or £225) and that the
and registry fees, of which annual fees are charged on
net fee (after deduction of the government levy) 62 dispecfferificentfdaee.t Thes erthreo isu gha roisk ut tt hh ae t r yeareven depenue madingy no ont beth e is what was recorded in total in the general
recorded in the correct period. ledger.
Details of the accounting policies applied during the year Fees originating from orders on the portal have are given in note 1 to the financial statements and details been reconciled in total through to the NAV of regulatory and registry fee income are given in notes 4 accounting ledger.
and 5 to the financial statements respectively.
All material revenue postings in relation to registry fees have then been analysed using data analytics to ensure that they have been credited to revenue and debited either to debtor control accounts or to the bank and covered by our balance sheet testing accordingly.
Any remaining postings are considered as part of our approach to the testing of manual journal entries.
Regulatory fee income
Our approach to the audit of regulatory fee income was as follows:
Identify an entity which from our own experience received its regulatory license at the end of the prior year. Walkthrough the data for this entity from the public registry to the list of regulated entities on the JFSC website, and then follow the license through to the underlying CRM system to ensure that the data captured is in line with our expectations and the entity was included...
The key audit matter How the matter was addressed in our audit
...within the 2021 fee runs appropriate for the licenses held.
Review the software code utilised to generate the fee run for each key regulatory class.
Review the XML code which is used to calculate the fee for each entity based on their submission, to ensure that it is in line with published fees. This was reviewed once for each class.
Using data analytics ensure that all expected entities are included within the relevant fee run and that the fee charged is consistent with the anticipated rate.
Perform a proof in total to ensure that all invoice lines within the CRM system agree to the revenue totals posted to the general ledger and within the correct accounting period.
Perform a proof in total to validate the deferred income balance.
Sample test transactional regulatory revenue to originating documentation.
As a result of our work, no material exceptions were
noted.
63 Risk 2 Our audit work included, but was not restricted to:
Impairment of intangible assets We reviewed the basis of the carrying value
of intangibles as at the balance sheet date,
Impairment assessment and the resulting carrying value which we noted to be cost less amortisation and
of intangible assets requires management estimation impairment.
and judgement, hence an increased risk of material
misstatement. At 31 December 2021, the Commission We reviewed the useful life assigned to the
carried a balance of £ 7,181,697 for Intangible Assets. intangibles for reasonableness.
This comprised of computer software. Intangible
assets are stated at historical cost less accumulated We tested additions on a sample basis to
amortisation and any impairment losses. supporting documentation.
The JFSC s accounting policy and disclosures of We assessed the appropriateness of the intangibles held are included in notes 1 and 9 of these JFSC s capitalisation policy compared to the financial statements respectively. requirements of accounting standards.
Based on our inquiry with management, impairment review is performed when there are indicators of impairment such as when legacy computer software is replaced. We have critically examined these assumptions based on our knowledge of the JFSC s operating environment and supporting documents such as minutes of meetings.
As a result of our work, there were no material issues noted. In addition, where management determined
that impairment was required, we found that these judgements were supported by reasonable assumptions and approvals through audit committee minutes.
65
Independent auditor s report continued
Other information in the Annual Report conducted in accordance with ISAs will always detect
a material misstatement when it exists. Misstatements
The Commissioners are responsible for the other can arise from fraud or error and are considered
information. The other information comprises the material if, individually or in the aggregate, they could
information included in the Annual Report , but does reasonably be expected to influence the economic
not include the financial statements and our auditor s decisions of users taken on the basis of these financial
report thereon. Our opinion on the financial statements statements.
does not cover the other information and, except to the
extent otherwise explicitly stated in our report, we do As part of an audit in accordance with ISAs, we exercise
not express any form of assurance conclusion thereon. professional judgment and maintain professional
In connection with our audit of the financial statements, scepticism throughout the audit. We also:
our responsibility is to read the other information and,
Identify and assess the risks of material
in doing so, consider whether the other information is
misstatement of the financial statements,
materially inconsistent with the financial statements
whether due to fraud or error, design and
or our knowledge obtained in the audit or otherwise
perform audit procedures responsive to
appears to be materially misstated. If, based on the
those risks, and obtain audit evidence that is
work we have performed, we conclude that there is a
sufficient and appropriate to provide a basis for
material misstatement of this other information, we are
our opinion. The risk of not detecting a material
required to report that fact.
misstatement resulting from fraud is higher
We have nothing to report in this regard. than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal
64 Responsibilities of the Commissioners for the control. 65
financial statements Obtain an understanding of internal control Evaluate the overall presentation, structure because the adverse consequences of doing so would
and content of the financial statements, reasonably be expected to outweigh the public interest
relevant to the audit in order to design
As explained more fully in the Responsibility for including the disclosures, and whether the benefits of such communication.
audit procedures that are appropriate in the
annual report and accounts set out on page 57, the financial statements represent the underlying
circumstances, but not for the purpose of
Commissioners are responsible for the preparation of transactions and events in a manner that
expressing an opinion on the effectiveness of
the financial statements which give a true and fair view achieves fair presentation. Use of our report
the JFSC s internal control.
and for such internal control as the Commissioners
We communicate with the Commissioners regarding,
determine is necessary to enable the preparation Evaluate the appropriateness of accounting This report is made solely to the States of Jersey in
among other matters, the planned scope and timing
of financial statements that are free from material policies used and the reasonableness of accordance with Article 21(3) of the Financial Services
of the audit and significant audit findings, including
misstatement, whether due to fraud or error. accounting estimates and related disclosures Commission (Jersey) Law 1998. Our audit work has
any significant deficiencies in internal control that we
made by the Commissioners. been undertaken so that we might state to the States
In preparing the financial statements, the identify during our audit.
of Jersey those matters we are required to state to them Commissioners are responsible for assessing the JFSC s Conclude on the appropriateness of the in an auditor s report and for no other purpose. To the
ability to continue as a going concern, disclosing, as Commissioners use of the going concern basis We also provide the Commissioners with a statement fullest extent permitted by law, we do not accept or
applicable, matters related to going concern and using of accounting and, based on the audit evidence that we have complied with relevant ethical assume responsibility to anyone other than the States
the going concern basis of accounting unless the obtained, whether a material uncertainty requirements regarding independence, and to of Jersey, the JFSC and the Board of Commissioners of Commissioners either intend to liquidate the JFSC or to exists related to events or conditions that may communicate with them all relationships and other the JFSC as a body, for our audit work, for this report, or
cease operations, or have no realistic alternative but to cast significant doubt on the JFSC s ability to matters that may reasonably be thought to bear on our for the opinions we have formed.
do so. continue as a going concern. If we conclude that independence, and where applicable, actions taken to
eliminate threats or safeguards applied.
a material uncertainty exists, we are required
to draw attention in our auditor s report to the From the matters communicated with the
Auditor's responsibilities for the audit of the related disclosures in the financial statements Commissioners, we determine those matters that
financial statements or, if such disclosures are inadequate, to modify were of most significance in the audit of the financial
our opinion. Our conclusions are based on statements of the current period and are therefore
Our objectives are to obtain reasonable assurance the audit evidence obtained up to the date of the key audit matters. We describe these matters Grant Thornton Limited
about whether the financial statements as a whole our auditor s report. However, future events in our auditor s report unless law or regulation Chartered Accountants
are free from material misstatement, whether due or conditions may cause the JFSC to cease to precludes public disclosure about the matter or when, St Helier
to fraud or error, and to issue an auditor s report that continue as a going concern. in extremely rare circumstances, we determine that Jersey
includes our opinion. Reasonable assurance is a high a matter should not be communicated in our report 8 July 2022
level of assurance, but is not a guarantee that an audit
Financial statements
66 67
[a]Financial
statements Statas at 31 December 2021ement of financial position
2021 2021 2020 2020 Fixed Assets Notes £'000 £'000 £'000 £'000
Intangible assets 9 7,182 7,770
Tangible fixed assets 10 491 689
7,673 8,459 Income and expenditure account Current Assets
for the year to 31 December 2021 [b]Sunradedr ryecdebeivtablorses 11 2,85446 165614
Prepayments 1,562 1,097
Cash and bank balances 12 11,124 12,136
15,586 14,012
2021 2020
Regulatory income Notes £'000 £'000
Total assets 23,259 22,471
Regulatory fee income 4 16,948 15,866
Registry fee income 5 5,183 6,130
Creditors - Amounts falling due within one year
Total regulatory income 22,131 21,996
Fee income received in advance 6,941 6,943
Statement of changes in Statement of cash flows for the accumulated reserves year ended 31 December 2021
Accumulated 2021 2020 reserves Cash flows from operating activities Notes £'000 £'000
£'000 Surplus for the year 326 2,403 Balance at 1 January 2020 6,692 Interest receivable (7) (24)
Surplus for the year 2,403 Depreciation, amortisation and impairment charges 9, 10 3,081 1,617 Balance at 31 December 2020 9,095 Utilisation of provision (14) (110)
Movements in creditor provisions 76 83 Balance at 1 January 2021 9,095 Movement in doubtful debts provision (12) 70
Surplus for the year 326 Deferred rental incentive (26) (26) Balance at 31 December 2021 9,421 (Increase) in debtors and prepayments (2,574) (349)
The notes on pages 72 to 83 form an integral part of the financial statements. (Decrease)/increase in income received in advance (7) 548
Increase/(decrease) in creditors 433 (358) Net cash generated from operating activities 1,276 3,854
Cash flows from investing activities
Interest received 7 24 Purchases of tangible and intangible fixed assets 9, 10 (2,295) (3,146) Net cash used in investing activities (2,288) (3,122)
70 71
Net (decrease)/increase in cash and cash equivalents (1,012) 732
Cash and cash equivalents at 1 January 12,136 11,404
Cash and cash equivalents at 31 December 12 11,124 12,136
Cash and cash equivalents consists of:
Cash at bank and in hand 2,294 132 Short-term deposits 8,830 12,004 Cash and cash equivalents 12 11,124 12,136
The notes on pages 72 to 83 form an integral part of the financial statements.
Notes to the financial
statements EAlFthorxpensle eeitxpensransgn eacsceurtsion.rarenePrca ycocofituns antedd lfoorssones anon af corceirualgns e baxcsis.hange are included in the income and expenditure account.
Foreign currency balances are translated to Sterling at the rate of exchange ruling on the last business day in the financial period. Foreign currency transactions are translated into Sterling at the rate of exchange ruling on the date of
Investigation and litigation costs
For the year ended
31 December 2021 Inworveks tunligaetssionaanprde slientigta oblitiong coationsts earxeisrtecos atgnis the edbalaans cinecshurreeed.t daNot e.provision is made for the cost of completing current
Cash and bank balances
Cash and bank balances comprise cash in hand, deposits and other short-term liquid investments that are readily convertible to a known amount of cash, are subject to an insignificant risk of changes in value, controlled by the organisation and to which the organisation attaches equitable ownership.
- Significant accounting policies Financial assets
Basic financial assets, including trade and other receivables and cash and bank balances, are initially recognised at Basis of preparation transaction price. Such assets are subsequently carried at amortised cost using the effective interest method.
The financial statements have been prepared in accordance with FRS 102, the Financial Reporting Standard applicable At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of in the United Kingdom and the Republic of Ireland. impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present
value of the estimated cash flows discounted at the asset s original effective interest rate. The impairment loss is
The financial statements are prepared on a going concern basis, under the historical cost convention. recognised in profit or loss.
The significant accounting policies applied in the preparation of the financial statements are set out below. These Financial liabilities policies have been consistently applied to both accounting years presented.
Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price plus
72 73
The JFSC is a statutory body established under Article 2 of the Financial Services Commission (Jersey) Law 1998. attributable transaction costs.
Our registered address is Jersey Financial Services Commission, PO Box 267, 14-18 Castle Street, JE4 8TP. Financial liabilities are de-recognised when the liability is extinguished, that is when the contractual obligation is
We have taken advantage of the exemption available under FRS 102 section 9.3(g) and have not prepared consolidated discharged, cancelled or expires.
financial statements. Trade and sundry creditors are obligations to pay for goods or services that have been acquired in the ordinary course
Income of business and are classified as current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade and sundry creditors are recognised initially at transaction price and subsequently
Income is accounted for on an accruals basis. measured at amortised cost using the effective interest method.
Regulatory and Registry annual fees received are recognised as income on a straight-line basis over the relevant Tangible fixed assets
period. Annual registry fees and revenue from the operation of the Island s registers include only the share of that
income attributable to us. Fixed assets are stated at historical cost less accumulated depreciation and any impairment losses. Historical cost
includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to Annual confirmation fees are deferred in the first instance and released to income in the period in which the related be capable of operating in the manner intended by management.
costs are incurred.
Repairs and maintenance are charged to the income and expenditure account during the period in which they are Amounts received from the Government of Jersey in the form of grants and other financial assistance are recognised incurred.
when the JFSC has satisfied all of the conditions necessary for the funds to be released. Amounts received are
recognised as income in the period in which the related costs are incurred or in the periods in which any related fixed Depreciation of fixed assets is calculated so as to write off their cost less estimated residual value on a straight-line asset is depreciated or impaired. basis over their expected useful lives. The estimated useful lives used for this purpose are:
Civil penalties are recognised when the penalty has been agreed with the regulated entity and where it has the ability Motor vehicles 3 years
to settle the amount involved. Income from civil penalties is deferred and is released to income in the year in which the Office furniture, fittings and equipment 3 to 5 years
amount of fees to be paid by Industry is reduced due to the penalty having been received.
Computer equipment 3 to 5 years
Recoveries of enforcement costs are accounted for only when they have been agreed with the regulated entity or Leasehold improvements Over the remaining lease period
awarded by the Royal Court and it has become virtually certain that they will be received.
Gains and losses on disposals of fixed assets are determined by comparing the proceeds with the carrying amount and Interest received on bank deposits is accrued on a time basis by reference to the principal outstanding and the are recognised in the income and expenditure account.
effective interest rate applicable. Sundry income is recognised on receipt.
Notes to the financial Annual leave pay accrual
statements continued A liabilidate and tyc isan be recocgnisarried ed ftoor twhare ed xttoenfuturt of ane pery unio tds.aken Thanne liabiliual lteay isve meneatisurtlemed enat t twhiche unh hdisascoauncctrued ed coast t thoef un baltanaken ce shanneeual t
leave that has accrued up to the balance sheet date.
Provision for long leave entitlements
Intangible assets
Intangible assets are stated at historical cost less accumulated amortisation and any impairment losses. Historical cost includes expenditure that is directly attributable to the development of the intangible asset. Subsequent maintenance and support costs are charged to the income and expenditure account during the period in which they are incurred.
Amortisation of intangible assets is calculated so as to write off their cost on a straight-line basis over their expected useful lives. The estimated useful lives used for this purpose are:
Computer software Up to 7 years
The cost of computer software in respect of major systems is capitalised within intangible assets. All other computer software costs are expensed as incurred. Computer systems under development are not amortised until the system has been completed and is ready for use.
Provision is made for the accrued entitlements to long leave as at the balance sheet date, even when such entitlements may not yet have vested. The provision is increased each year as additional entitlements are earned. The provision is decreased when long leave entitlements are taken and when such entitlements expire.
The provision represents management s best estimate of the amounts expected to be paid out, taking into account long leave entitlements that may be lost when an employee leaves our employment. The provision is discounted if the effect would be material.
Provision for premises reinstatement
Provision is made for the expected costs of reinstating office premises to their original condition upon the termination of existing lease agreements. The balance represents management s best estimate of amounts to be paid for reinstatement. The provision is assessed each year based on changes in the expected costs of reinstatement and discount rates where applicable. The provision will be reduced when related costs are incurred in future periods. Provisions for premises reinstatement costs are discounted if the effect would be material.
Gains and losses on disposal of intangible assets are determined by comparing any proceeds with their carrying
amount and are recognised in the income and expenditure account.
- a) Critical accounting judgements and key sources of
In thatht eth reequirprojecemten wiltsl ggaenthereraing phte futuraseeeconof an inomicterbennal sefitysstems and dehevnelceopmall eenxpent projecditurt,e it isis rec noot pgnisossibled aes tano dem exp onsens ter awhteen estimation uncertainty
incurred. Systems developments are recognised as fixed assets from the development phase of a project if, and only
if, certain specific criteria are met in order to demonstrate the system will generate probable future economic benefits
and that its cost can be reliably measured. If it is not possible to distinguish between the requirements gathering Estimates and judgements are continually evaluated and are based on historical experience and other factors,
74 phase and the development phase, the expenditure is treated as if it were all incurred in the requirements gathering including expectations of future events that are believed to be reasonable under the circumstances. 75
phase only.
Key accounting estimates and assumptions
Impairment
Assets that are subject to depreciation and amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is an indication that an asset may be impaired, it is tested for impairment. An impairment loss is recognised for the amount by which the asset s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows. Cash flows from registry and supervisory income are separately identifiable and assets are allocated between these cash flows based on their operational application.
Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.
Leases
Rent payable under operating leases is charged to the income and expenditure account on a straight-line basis over the term of the lease.
We have taken advantage of the exemption available on transition to FRS 102, which allows lease incentives on leases entered into before the date of transition to continue to be released to the income and expenditure account on a straight-line basis over the period to the first lease break.
For leases entered into after the date of adoption of FRS 102, lease incentives received to enter into operating lease agreements are released to the income and expenditure account over the full term of the lease.
Pension costs
The costs of defined contribution pension schemes are accounted for on an accruals basis. The costs of annual contributions payable to defined benefit schemes operated by the Government of Jersey are accounted for on an accruals basis because we are unable to obtain the information necessary to apply defined benefit scheme accounting.
Management is required to make estimates and assumptions concerning the future. The resulting accounting estimates may not equal the actual outcomes. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within this and the next financial year are outlined below.
Provision for long leave entitlements
The balance of the provision for long leave has been determined based on a range of estimates regarding the probability that the related leave entitlement will vest and be taken. This represents management s best estimate regarding the expected future cash flows related to long leave entitlements.
Provision for premises reinstatement
The balance of the provision for premises reinstatement has been determined based on the applicable square footage of leased premises and the rate per square foot for such reinstatement works published by the Royal Institute of Chartered Surveyors. The provision is adjusted annually based on movements in the published rate per square foot. This represents management s best estimate regarding the expected future cash flows related to these costs. The balance is discounted if the effect would be material.
Provision for doubtful debts
Provision is made for doubtful debts when the recoverability of a trade receivable is considered uncertain at the reporting date. In the overall assessment of irrecoverability, management considers each amount and debtor individually as well as available information at the reporting date and any other relevant factors pertaining to the trade receivable.
Useful lives and residual values
Fixed assets are depreciated over their expected useful lives, taking into account residual values where appropriate. The actual lives and residual values are assessed annually and may vary depending on a number of factors.
Notes to the financial Inenhpraneviocemusenyearts t s,o ath pore R teiongis otr fy R anegisd it tsry s fy eestems.s rec eivThisedc wapiast alse fungredinggatedmanecdh anismused f orcamcere ttaino anc urenrdenint an202d 0futanurde t herefore statements continued n13o faorddifurtionthal er fineefors wmerateion. received in 2021 (2020: a temporary increase of £1.1m in fees was attributable to us). See note
2021 2020 £'000 £'000
In re-assessing useful lives and residual values, a wide range of factors are taken into account. Changes in these Total annual fees collected 7,401 7,873 assessments are accounted for prospectively and therefore only have a financial effect on current and future periods.
This is apportioned as follows:
Collected on behalf of the Government of Jersey 4,810 3,925
- b) Going Concern Collected by the JFSC 2,591 3,948 7,401 7,873
The Board regularly reviews our actual and forecast retained liquid asset level to ensure that it meets the minimum
requirements in accordance with its retained liquid asset policy. This ensures that by retaining a minimum liquid asset Annual confirmation fee income collected by the JFSC 2,591 3,948 level at all times, we are able to cover a period of operating costs, maintain a reserve for investigation and litigation Other Registry income 2,592 2,182 costs, and cover essential capital requirements. Forecast liquid asset levels also exceed the target liquid reserves for Total Registry income 5,183 6,130 the medium term and therefore the Board has a reasonable expectation that we have adequate resources to continue
in operational existence for the foreseeable future and we therefore continue to adopt the going concern basis in
preparing our financial statements. The number of annual confirmations received during the year was:
2021 2020 Annual confirmations received 33,090 34,130
- Taxation
6. Other income
We are exempt from the provisions of the Income Tax (Jersey) Law 1961, as amended.
2021 2020 £'000 £'000
76 Investigation and litigation recoveries 12 10 77
- Regulatory fee income Financial contribution income* 338 702
2021 2020 Sundry income 16 26
£'000 £'000 366 738
Banking 2,249 2,098
Funds 7,751 6,974 *As detailed in note 13, an amount of £257,867 from previously segregated and deferred Registry fees has been Insurance business 1,016 956 included in financial contribution income for the year ended 31 December 2021 (2020: £540,000).
General insurance mediation 156 173
Investment business 1,471 1,416
Trust companies 3,570 3,418 7. Staff costs
Designated non-financial businesses and professions 681 776
Recognised auditors 28 29 2021 2020 Money services business 26 26 £'000 £'000
Staff salaries 11,238 10,920
16,948 15,866
Commissioners' fees 367 403 Social security contributions 596 550
- Registry fee income Pension contributions 875 826 Permanent health and medical insurance 438 435
Registry fees arise from the operation of the Companies Registry, the Business Names Registry, the Registry of Other staff costs 219 144 Limited Partnerships, the Registry of Limited Liability Partnerships, and the Security Interests Register. Long leave provision (27) 19
Annual leave pay accrual 12 46 Registry fees include annual confirmation fees. The amount of the annual confirmation fees payable to the Registry
includes amounts collected on behalf of and remitted to the Government of Jersey. 13,718 13,343
In 2021 the annual confirmation fees remained unchanged at £225 with the government portion increasing to £145
(2020: £115) following introduction of the Financial Services (Disclosure and Provision of Information) (Jersey) Law The average number of staff employed during the year was 181 (2020: 151). 2020. As a result, we decided to temporarily reduce our portion of these fees to £80 (2020: £110). This resulted in a
decrease in fees attributable to us of £992,700 (2020: increase of £0.8m).
Notes to the financial
statements continued Thimple preminencipal ting eoxpenther kdietury set durrateing gic t prheojecyear rts (£1,603,319),elated to inveanst d moe tnht in er operour enhationanal iniced rtiaegistivetrsy (£183, system213).s (£444,131),
Following an assessment of intangible assets in 2021, a decision was made to impair 3 systems, the Legacy Supervision CRM system, the HR Talent system and the Legacy HR system. These systems have been decommissioned, reducing their economic value and therefore the remaining net book value of £1.2m has been fully impaired.
8. Surplus for the year
10. Tangible fixed assets
The surplus for the year is stated after including the below:
2021 2020 £'000 £'000
Amortisation of intangible assets (note 9) (1,513) (1,272) Depreciation of tangible fixed assets (note 10) (334) (345) Impairment of intangible assets (note 9) (1,233) 0 Loss on disposal of tangible fixed assets (note 10) (1) 0 Research and development costs not capitalised 0 (36) Foreign exchange differences (11) (10) Operating lease expenditure (575) (578) Contributions to employee pension schemes (951) (826) Movement in doubtful debts 12 (70) Audit fees (49) (53) Non audit services 0 (3)
(4,655) (3,193)
78
9. Intangible assets
Computer
systems under Computer
development systems Tota Cost £'000 £'000 £'000
Balance at 1 January 2021 4,106 9,939 14,045 Additions 2,231 0 2,231 Completed computer systems (3,652) 3,652 0 Transfer (to)/from tangible fixed assets (95) 22 (73)
0 0 0 Cost of intangible assets impaired 0 (3,899) (3,899) At 31 December 2021 2,590 9,714 12,304
Amortisation
Balance at 1 January 2021 0 (6,275) (6,275) Charge for the year 0 (1,513) (1,513) Accumulated amortisation on intangible assets impaired 0 2,666 2,666 At 31 December 2021 0 (5,122) (5,122)
Office
furniture,
fittings & Leasehold Computer Motor Tota equipment improvements equipment vehicles
Cost £'000 £'000 £'000 £'000 £'000 Balance at 1 January 2021 641 311 2,027 13 2,992 Additions 39 0 25 0 64 Transfer from intangible assets 0 39 34 0 73 Disposals 0 0 (4) 0 (4) At 31 December 2021 680 350 2,082 13 3,125
Accumulated depreciation
Balance at 1 January 2021 (604) (223) (1,463) (13) (2,303)
Charge for the year (18) (60) (256) 0 (334)
Disposals 0 0 3 0 3
At 31 December 2021 (622) (283) (1,716) (13) (2,634) 79
Net book value at 31 December 2021 58 67 366 0 491 Net book value at 31 December 2020 37 88 564 0 689
- Trade receivables
2021 2020 £'000 £'000
Trade debtors 2,912 684 Provision for doubtful debts (58) (70)
2,854 614
Provision is made for doubtful debts when the recoverability of a trade receivable is considered uncertain at the reporting date. In the overall assessment of irrecoverability, management considers each amount and debtor individually as well as available information at the reporting date and any other relevant factors pertaining to the trade receivable. At 31 December 2021, trade debtors are stated after providing for doubtful debts of £57,682 (2020: £67,734).
Net book value at 31 December 2021 2,590 4,592 7,182 Net book value at 31 December 2020 4,106 3,664 7,770
Notes to the financial 14. Provisions for liabilities
statements continued Prolong lvision eafvor e Reinstpratoemvisionent Tota £'000 £'000 £'000
Balance at 1 January 2020 198 325 523
Amounts provided for during the year 20 81 101
- Cash and bank balances Reversal of unused provision (18) 0 (18) 2021 2020 Utilised during the year (110) 0 (110) £'000 £'000 Balance at 31 December 2020 90 406 496
Current accounts 2,294 131
Short-term deposits 8,830 12,004 Amounts provided for during the year 27 49 76 Petty cash 0 1 Reversal of unused provision 0 0 0 Cash and cash equivalents at bank 11,124 12,136 Utilised during the year (14) 0 (14)
Balance at 31 December 2021 103 455 558 In order to mitigate the credit risk, these deposit accounts are maintained with five different banks.
Falling due within one year 35 0 35
- Creditors Falling due after more than one year 68 455 523 103 455 558
2021 2020 £'000 £'000
Trade creditors 2,068 2,024 The provision for long leave relates to the expected cost of long leave entitlements that have accrued up to the date
of the Statement of financial position. Long leave entitlements may continue to accrue up to June 2043 if all vesting
Accruals 1,277 1,010
conditions are satisfied up to that period.
Deferred rental incentive 10 36
Deferred industry fees * 191 126 Provision for premises reinstatement
Deferred registry fees ** 2,025 2,283 The provision relates to the expected costs of reinstatement of office premises to their original condition on
80 Registry funds on account 414 0 termination of premises leases. The balance at year end has been determined based on a guideline rate of £22.4 per 81
square foot (2020: £20 per square foot) as determined by the Royal Institute of Chartered Surveyors. The provision is
Sundry creditors 171 270
adjusted annually based on movements in the guideline rate.
6,156 5,749
Falling due within one year 4,269 3,745 15. Commitments under operating leases Falling due after more than one year 1,887 2,004
6,156 5,749
We had minimum lease payments under non-cancellable operating leases as set out below:
*Deferred industry fees arise from civil penalties received during the year. The Law requires the amount to be credited 2021 2020 to Industry by way of reductions in the Industry fees that would otherwise be charged in future years. £'000 £'000
**It was agreed with the Government of Jersey that a portion of the additional registry fees charged from 2017 to 2019 Not later than 1 year 519 601 be segregated and used for certain current and future enhancements to the Registry and its systems. In 2020 it was Later than 1 year but not later than 5 years 519 248
confirmed the segregated amount should be utilised for Registry projects and for start-up costs of the MONEYVAL Later than 5 years 174 0 AML inspection unit. As referred to in note 6, an amount of £257,867 has been recognised as financial contribution
1,212 849 income during the current financial year (2020: £540,000) as an offset to the charges associated with running the unit,
and £2,024,798 (2020: £2,282,665) is carried forward to be released over the useful life of the Registry system, in line
with amortisation charges. No further unallocated segregated funds under this arrangement remain.
Rentals payable under this operating lease are subject to periodic review and are based on market rates. The most recent rent review was agreed during 2020 and the resulting rental increase was effective from May 2019. The next rent review is due to commence in 2022.
Notes to the financial 19. Subsidiary undertakings
statements continued At 31 December 2021, we had an interest in one wholly owned subsidiary company. Further details are outlined below:
Name: JFSC Property Holdings No.1 Limited
Country of incorporation: Jersey
- Statement of net debt % of shares held: 100%
Cash at bank Short term Principal activity: Property lease holding
and in hand deposits Tota
JFSC Property Holdings No.1 Limited (the Company) entered into an agreement on our behalf to lease our office £'000 £'000 £'000
premises. The Company had no expenditure during the year (2020: Nil) and has no assets or liabilities.
Balance at 1 January 2021 132 12,004 12,136
Cash flows 2,162 (3,174) (1,012)
Balance at 31 December 2021 2,294 8,830 11,124
- Financial instruments
Our financial instruments are analysed as follows:
2021 2020 £'000 £'000
Financial assets
Financial assets measured at amortised cost 14,024 12,915
Financial liabilities
Financial liabilities measured at amortised cost (2,239) (2,294)
82 83
Financial assets measured at amortised cost comprise cash at bank and in hand, trade debtors and other debtors. Financial liabilities measured at amortised cost comprise trade creditors and other creditors.
- Related party transactions
Transactions with the Government of Jersey
We have been established in law as an independent financial services regulator and as such the Government of Jersey is not a related party.
Remuneration of key management personnel
Key management personnel includes the Commissioners, the Director General and Executive Directors who together have authority and responsibility for planning, directing and controlling our activities. Total remuneration paid to members of key management personnel during the year was £1.5m (2020: £1.5m).
Remuneration of Commissioners
Remuneration of the Commissioners and the Director General is set out on page 57 of this Annual Report. There were no other transactions with key management personnel other than reimbursement of expenses incurred for JFSC purposes.
Appendix
84 85
Appendix
Board of Commissioners Executive team
Mark Hoban
Chair
86
Monique O Keefe Claire Bowes Tracy Garrad Annamaria Koerling
Deputy Chair Commissioner Commissioner Commissioner
Simon Morris Peter Pichler Matt Palmer
Commissioner Commissioner Commissioner
Jill Britton
Director General
87
John Gavey Julian Lamb Diane Maxwell Kerry Petulla
Chief Operations Executive Director Executive Director Executive Director Officer of Registry of Policy and Risk of Enforcement
Alexis Dolling
Executive Director of People and Culture
Notes
Our vision is
to be a high
performing
regulator,
building for
88 the long-term 89
success of
Jersey
90 91