Jersey’s beneficial ownership guidance has been updated by the Jersey Financial Services Commission for companies owned by a trust, so that a settlor who has not retained any powers of control over the trust no longer needs to be recorded as a ‘controller’ of the company.
The Financial Services Law, last updated in January 2021, came into effect on the 6th of January 2021, establishing a central register of beneficial owners and significant persons in Jersey. This register finally became operational in February and any such entity within the scope was required to update the register by 30 April 2021, although this deadline has subsequently been extended to 30 September 2021.
Entities in scope will include companies, foundations, incorporated limited partnerships, separate limited partnerships, limited liability companies and limited liability partnerships. Any changes to beneficial ownership information of the above must be declared within 21 days.
The latest amendment to the guidance (sections 1 & 5) applies to companies owned by a trust. It states that such companies no longer need to record the trust’s settlor as a controller unless the settlor has retained powers of control over the trust. These powers may include the right to appoint or remove a trustee, to amend the trust deed or to revoke the trust.
The Jersey Financial Services Commission (JFSC) will still collect the details of settlors, instigators and arrangers, as part of the wider information it uses to assess the company’s activities and structure, but these persons will not be recorded as controllers.
An EU consensus still needs to be reached in relation to disclosure standards and nominated persons information and will not be made public until that time.
Amended guidance is also available which explains the definition of ‘beneficial owner’ in the law and clarifies how the information is recorded in the JFSC’s registry. This updated guidance can be viewed here: https://www.jerseyfsc.org/industry/guidance-and-policy/beneficial-ownership-and-controller-guidance/
At forward we are experienced in navigating such guidance and legal changes and how it affects individual situations. Our experienced team would be delighted to have an Informal chat with you and your advisers about your fiduciary requirements and how we might assist with your long-term aspirations and objectives. Contact us today for that informal discussion.
Forward Group and its affiliates are regulated by the Jersey Financial Services Commission for the conduct of Trust and Company business.