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Jersey's financial regulator is looking to place greater emphasis on cyber risk management in its Code of Practice to make sure companies have policies in place to identify threats, protect assets, and act quickly in case of an incident.
The emphasis on cybersecurity comes amid a wider review of the Jersey Financial Services Commission's (JFSC) Code, which is being updated to ensure it addresses regulatory concerns on a local and international level.
It has launched a consultation on the proposals and is calling for comments before 7 January. If adopted, the new Code of Practice will come into force two months after its publication. The JFSC is hoping to publish its refreshed set of rules in the first quarter of 2019.
Other changes include preventing the payment of financial penalties by way of insurance.
The JFSC also wants to establish yearly independent reviews of the controls over client money for trust and company service providers. The review would check the effectiveness of the registered person’s relevant controls over loss, misuse and misappropriation of client funds and money.
Pictured: If approved, the new rules would mean that financial penalties on companies cannot be paid through an insurer.
Under the plans, the Banking Code would also be amended so that it is a requirement for local banks to notify the JFSC in writing of any changes to their capital structure no less than 10 business days before any changes are made. This is being brought in to make sure that registered persons who might intend to repay or vary the terms of capital receive appropriate consent from the JFSC.
The Funds Code could also be amended and funds required to notify the finance regulator if they wind up or dissolve.
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