Investors
(Prevention of Fraud) (Jersey) Law 1967
A LAW to penalise fraudulent inducements to invest money[1]
Commencement [see endnotes]
1 Interpretation[2]
In this Law –
“LLC interest” has the same meaning as in the Limited Liability Companies
(Jersey) Law 2018;
“securities” means –
(a) shares
or debentures, or rights or interests (described whether as units or otherwise)
in any shares or debentures;
(b) LLC
interests in a limited liability company registered under the Limited Liability Companies
(Jersey) Law 2018 or rights or interests (described whether as
units or otherwise) in any LLC interests;
(c) securities
of the States or of the Government of the United Kingdom or of Northern Ireland
or the Government of any country or territory outside the United Kingdom; or
(d) rights
(whether actual or contingent) in respect of money lent to, or deposited with,
any industrial and provident society or building society,
and includes rights or interests (described whether as units or
otherwise) which may be acquired under any unit trust scheme under which all
property for the time being subject to any trust created under the scheme
consists of such securities as are mentioned in sub-paragraph (a), (b) or
(c) of this definition.
2 Fraudulent
inducement to invest money
Any person who, by any
statement, promise or forecast which the person knows to be misleading, false
or deceptive, or by any dishonest concealment of material facts, or by the
reckless making (dishonestly or otherwise) of any statement, promise or
forecast which is misleading, false or deceptive, induces or attempts to induce
another person –
(a)
(i) to lend to the
person or to any other person money on terms involving payment of interest or
repayment at a premium, or
(ii) to
enter into or offer to enter into any agreement for that purpose;
(b) to
enter into or offer to enter into –
(i) any
agreement for, or with a view to, acquiring, disposing of, subscribing or
underwriting securities, or
(ii) any
agreement the purpose or pretended purpose of which is to secure a profit to
any of the parties from the yield of securities or by reference to fluctuations
in the value of securities;
(c) to
take part or offer to take part in any arrangements with respect to property
other than securities, being arrangements the purpose or effect, or pretended
purpose or effect, of which is to enable persons taking part in the
arrangements (whether by becoming owners of the property or any part of the
property or otherwise) to participate in or receive profits or income alleged
to arise or to be likely to arise from the acquisition, holding, management or
disposal of such property, or sums to be paid or alleged to be likely to be
paid out of such profits or income; or
(d) to
enter into or offer to enter into an agreement the purpose or pretended purpose
of which is to secure a profit to any of the parties by reference to
fluctuations in the value of any property other than securities,
shall be liable to a fine
or to imprisonment for a term not exceeding 7 years or to both such fine and
such imprisonment:
Provided that the
provisions of sub-paragraph (a) of this Article shall not apply to any
inducement or attempted inducement made to any person whose ordinary business
includes the business of banking, or who carries on a business of such other
class or description as may be prescribed.
3 Citation[3]
This Law may be cited as
the Investors (Prevention of Fraud) (Jersey) Law 1967.