Annual Report 2012 - the Jersey Financial Services Commission

SupervisionAuthorisations and revocationsRegistered businesses comprise: banking; fund servicesbusiness (“FSB”); general insurance mediation business(“GIMB”); insurance; investment business (“IB”); trustcompany business (“TCB”); and designated non financialbusinesses and professions (“DNFBP”) that carry on abusiness specified in Schedule 2 of the Proceeds of Crime(Jersey) Law 1999.The Supervision Divisions are responsiblefor two of the Commission’s five aims.These are “to ensure all entities that areauthorised meet fit and proper criteria”and “to ensure that all regulated entitiesare operating within accepted standardsof good regulatory practice.”The Supervision PackageApproach• A pro-active risk-based approach aimed at achievingcomplementary goals of discovery and deterrence,and which seeks to maintain or, where appropriate,to raise, regulatory standards.Off-site• Authorisation of regulated entities and principalpersons.• Review of financial information and regulatory/prudential returns.• Review of intelligence, including whistle blowing,complaints and Suspicious Activity Reports.On-site• Various types of on-site examination as detailed below.• Mystery shopping, particularly in relation to theprovision of financial advice.Post on-site• Follow up and remediation.• Heightened supervision, including the use ofenforcement powers.During 2012, the number of registered businesses in eachsector, together with any authorisations and revocations,was as follows.Registered businesses in each sectorSector1 January2012AuthorisedRevoked31 December2012Banking 40 2 0 42FSB 459 33 26 466GIMB 124 23 7 140Insurance 186 8 16 178IB 100 5 8 97TCB 176 21 8 189DNFBP 193 37 14 216Total 1,278 129 79 1,328ExaminationsThe Commission has continued its focus on risk-basedsupervision through on-site examinations and following upany necessary action arising out of those examinations.The themes arising from the examinations have also beenfed back to Industry in various ways - through seminars,presentations, dialogue with Industry associations,letters to chief executive officers (“Dear CEO letters”),the eNewsletter and the Website. The Commissioncompleted 187 examinations during 2012.“A pro-active risk-based approach aimedat achieving complementary goals ofdiscovery and deterrence, and whichseeks to maintain or, where appropriate,to raise, regulatory standards.”20 | ANNUAL REPORT 2012