JERSEY Law and Practice Contributed by: Christopher Griffin, Sophie Hancock, Tshogofatso Dhlamini, Rachael Barber, David Patterson and Mike Kushner, Carey Olsen
3. Robo-Advisers 3.1 Requirement for Different Business Models See 2.2 Regulatory Regime . In addition the pro - vision of “investment advice” by way of business in or from within Jersey (in summary, advising as to the merits of buying/selling any assets that are classified as “investments” under the Financial Services Law) will require an invest - ment business licence (subject to any available exemptions). The definition of “investments” is widely drafted and includes various securities (including shares in companies and debentures) and derivatives, but not fiat cash or non-security cryptocurrencies. In order to set up an investment business in Jer - sey, a company would need to have Jersey staff and premises, including at least two or three appropriately qualified and experienced local directors (depending upon whether or not the investment business will control client assets) and its own local compliance function. The position is the same regardless of whether the investment advice is provided via a tradi - tional investment advisory model or using an automated system such as a robo-adviser. 3.2 Legacy Players’ Implementation of Solutions Introduced by Robo-Advisers The authors’ experience in Jersey is that, although there are a small number of local investment platforms that deal in investments on an automated basis with little or no manu- al intervention, the use of robo-advisers is not widespread.
3.3 Issues Relating to Best Execution of Customer Trades The JFSC has published an Investment Business Code of Practice (the “IB Code” ), which contains a number of high-level principles with which all investment businesses must comply and then drills down into the specifics of the manner in which an investment business must comply with each principle. The IB Code covers matters such as corporate governance, systems and controls, minimum financial resources, and insurance – as well as integrity in dealing with clients – and is significantly less prescriptive than the equivalent regulations in many other jurisdictions (eg, the UK). The IB Code requires that an investment busi - ness must have the highest regard for the inter - ests of its client and, to that end, must execute any trades in a timely manner and following best execution principles – for example, by taking reasonable care to ascertain the result that is the best possible at the time for transactions of the kind and size concerned.
4. Online Lenders 4.1 Differences in the Business or Regulation of Fiat Currency Loans Provided to Different Entities
The regulatory regime applicable to a lender under Jersey law depends on the lender and the activity itself, not the status of the borrower. However, there is ongoing government consul - tation on such matters, and the authors recom - mend that the position is confirmed at the rel - evant time. All lenders should therefore be aware of the following. • Lenders carrying on “deposit-taking business” (in summary, using deposits received from
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