23/08/21

JERSEY: Non-controlling settlors need not be declared as beneficial owners.

As published on step.org/industry-news, Monday 23 August, 2021.

Jersey's beneficial ownership guidance has been amended 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 guidance was last updated in January 2021, when the Financial Services (Disclosure and Provision of Information) (Jersey) Law 2020 (Disclosure Law) came into force on 6 January. The law established a new central register of beneficial owners and significant persons in Jersey, enacting the Financial Action Task Force's (FATF’s) Recommendation 24 relating to the beneficial ownership of legal persons.

The register itself became operational in late February after initial technical troubles. Entities within scope were required to update the register by 30 April 2021, although this deadline was subsequently deferred to 30 September 2021.

Entities in scope include companies, foundations, incorporated limited partnerships, separate limited partnerships, limited liability companies and limited liability partnerships. Any changes to the beneficial ownership information of these entities has to be reported within 21 days.

The latest amendments to the guidance apply to companies owned by a trust. It states that such companies no longer need to record the trust's settlor as a controller of the company, unless the settlor has retained some powers of control over the trust. These powers could include the right to appoint or remove a trustee, to amend the trust deed or to revoke the trust.

Although settlors, instigators and arrangers will not routinely be recorded as controllers, the Jersey Financial Services Commission (JFSC) will still collect their details, as part of the wider information it uses to assess the company's activities and structure.

Beneficial owners of entities will not be made public until an EU consensus has been reached on relevant disclosure standards and nominated person information will not be made publicly available.

The amended guidance also explains the definition of 'beneficial owner' in the law and clarifies how the information is recorded in the JFSC’s registry.