The Jersey Financial Services Commission has published a new draft Code of Practice for the 190 trust companies that undertake business in that island.<\/p>\n
The key elements are as follows:<\/p>\n
4.1.2 The draft Codes retain six fundamental principles for trust company business:<\/em><\/p>\n - A registered person must conduct its business with integrity;<\/em> 4.1.3 In addition, the following seventh principle has been added, under which will be structured codes relating to the advertising of products and services:<\/em><\/p>\n - A registered person must not make statements that are misleading, false or deceptive.<\/em><\/p>\n Now let's for one moment compare this with the requirements of Jersey's new trust laws which (as noted previously on this blog<\/a>) allow a trust company to run a trust where:<\/p>\n 1) the trustee can accept they act entirely in accordance with the settlor's instructions and so pretend to be a trustee when they're not and It's pretty hard to reconcile such naked abuse of normally accepted trust law with:<\/p>\n - integrity; But this is Jersey, and normal standards do not, of course, apply.<\/p>\n Thanks to Chris Steel for drawing this to my attention.<\/p>\n","protected":false},"excerpt":{"rendered":"
\n - A registered person must have due regard for the interests of its customers;<\/em>
\n - A registered person must organise and control its affairs effectively for the proper performance of its business activities and be able to demonstrate the existence of adequate risk management systems;<\/em>
\n - A registered person must be transparent in its business arrangements;<\/em>
\n - A registered person must maintain, and be able to demonstrate the existence of, adequate capital resources; and<\/em>
\n - A registered person is expected to deal with the Commission and other authorities in the Bailiwick in an open and co-operative manner.<\/em><\/p>\n
\n2) they must return the trust property on demand to the settlor, in complete denial of all the principles of trusts.<\/p>\n
\n- transparency;
\n- openness and co-operation;
\n- an absence of misleading statements, deception or falsehoods.<\/p>\n