Jersey Law 14/1967
DEPOSITORS AND INVESTORS (PREVENTION OF FRAUD) (JERSEY) LAW, 1967,
CONFIRMED BY
Order of Her
Majesty in Council
dated 28th June,
1967.
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(Registered on
28th July, 1967).
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(Reprinted with
amendments to 18th February, 1976).
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ARRANGEMENT OF
ARTICLES.
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Article
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1.
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Interpretation
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2.
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Meaning of “deposit”
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3.
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Prohibition of acceptance of investments on deposit
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4.
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Applications for, and grant and extent of,
registration
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5.
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Refusal and revocation of registration
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6.
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Penalty for failure to register
or to comply with registration conditions
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7.
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Registration certificates
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8.
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Production and delivery of registration certificates
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9.
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Procedure and right of appeal on
refusal or cancellation of registration etc.
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9A.
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Representation to Court by
Committee where registration refused or cancelled
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10.
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Publication of names of registered persons.
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11.
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False statements
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12.
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Fraudulent inducement to invest money
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13.
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Orders.
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14.
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Service of notices
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15.
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Offences by managers, agents etc.
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16.
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Short title and commencement
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DEPOSITORS AND INVESTORS (PREVENTION OF FRAUD) (JERSEY) LAW, 1967.
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A LAW to
provide for the registration of persons carrying on the business of accepting
money for investment on deposit, to penalise
fraudulent inducements to invest money, and generally to provide for purposes
connected with the matters aforesaid, sanctioned by Order of Her Majesty in
Council of the
28th day of JUNE, 1967.
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(Registered on the 28th day of July, 1967).
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STATES OF JERSEY.
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The 11th day of
April, 1967.
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THE STATES, subject to the sanction of
Her Most Excellent Majesty in Council, have adopted the following Law: -
ARTICLE 1
INTERPRETATION
(1) In
this Law, unless the contest otherwise requires –
“building society” means any building society or
Northern Ireland society within the meaning of the Building Societies Act 1962
(of the United Kingdom), and any unincorporated society to which section 125 of
that Act applies;
“the Committee” means the Finance Committee;
“debentures” means any debentures, debenture stock or
bonds of a company, whether constituting a charge on the assets of the company
or not;
“enactment” includes any enactment of the Parliament of
the United Kingdom or of Northern Ireland;
“friendly society” means a society registered under the
Friendly Societies Act, 1896 (of the United Kingdom), or under that Act as it
applies in Northern Ireland;
“industrial and provident society” means a society
registered under the Industrial and Provident Societies Act 1965 (of the United
Kingdom) or under that Act as it applies in Northern Ireland;
“prescribed” means prescribed by order;
“registered” means registered under this Law;
“securities” means –
(a) shares or debentures,
or rights or interests (described whether as units or otherwise) in any shares
or debentures; or
(b) 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
(c) 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 in pursuance of the
scheme consists of such securities as are mentioned in sub-paragraph (a), (b)
or (c) of this definition;
“shares” means shares in the share capital of a company
or stock of a company, or shares in such an unincorporated building society as
is mentioned is section seven of the Building Societies Act, 1874 (of the
United Kingdom);
“unit trust scheme” means any arrangements made for the
purpose, or having the effect, of providing facilities for the participation by
persons, as beneficiaries under a trust, in any profits or income arising from
the acquisition, holding, management or disposal of securities or any other
property whatsoever.
(2) References
in this Law to any other enactment shall be construed as references to that
enactment as amended by or under any subsequent enactment.
ARTICLE 2
MEANING OF “DEPOSIT”
In this Law, “deposit” means a loan of money at
interest, or repayable at a premium, but does not include a loan to a person on
terms involving the issue of debentures or other securities, and references to
the deposit of money or the investment of money on deposit shall be construed
accordingly.
ARTICLE 3
PROHIBITION OF ACCEPTANCE OF INVESTMENTS ON DEPOSIT
(1) Subject
to the provisions of this Law, no person shall carry on or hold himself out as
carrying on the business of accepting money for the purpose of investment on
deposit unless he is for the time being registered.
(2) This
Article shall not apply to the doing of anything by or on behalf of –
(a) the States;
(b) any London Clearing
Bank;
(c) the post office savings
bank within the meaning of the Post Office Savings Bank Act, 1954;
(d) any savings bank
certified under the Trustee Savings Banks Act, 1863, or the Trustee Savings
Banks Act, 1954 (of the United Kingdom);
(e) any building society,
friendly society or industrial and provident society;
(f) any person who
carries on a business of such class or description as may be prescribed:
Provided that sub-paragraph (e)
of this paragraph shall not apply to any building society during any period in
respect of which a direction given by the Chief Registrar of Friendly Societies
under section 51 of the Building Societies Act, 1962 (of the United Kingdom) is
in force.
ARTICLE 4
APPLICATIONS FOR, AND GRANT AND EXTENT OF, REGISTRATION
(1) Subject
to the provisions of this Law, on an application in that behalf made by any
person in the prescribed manner and on payment of the prescribed fee, the
Committee shall register that person.
(2) Every
registration shall, unless previously cancelled, expire on the thirty-first day
of January next following the day on which it takes effect.
ARTICLE 5
REFUSAL AND REVOCATION OF REGISTRATION
(1) The
Committee may refuse to grant an application for registration or, where
registration has been granted, may cancel the registration, if –
(a) the applicant or the
registered person has not, on the occasion of the application or, as the case
may be, at any prescribed time during the currency of the registration,
furnished to the Committee such information relating to himself, and to any
circumstances likely to affect his method of conducting business, as may be
prescribed, being information verified in such manner as the Committee may
require;
(b) it appears to the
Committee that by reason of the applicant or the registered person, or any
person employed by, or associated with, the applicant or that person for the
purpose of his business –
(i) having
been convicted within the Commonwealth of an offence, his conviction for which
necessarily involved a finding that he acted fraudulently or dishonestly; or
(ii) having
been convicted of an offence under this Law or any order made thereunder;
or it appears to the Committee that by reason of any other
circumstances whatsoever which either are likely to lead to improper conduct of
business by, or reflect discredit on the method of conducting business of, the
applicant or the registered person or any person so employed by or associated
with him as aforesaid;
[(c) it appears to the Committee,
as a result of the information furnished in pursuance of the requirements of
sub-paragraph (a) of this paragraph
or information otherwise obtained, that it is not in the best interests of
persons who have deposited, or who might deposit, money with the applicant or
the registered person or that it is not in the best economic interests of the
Island, that the applicant or the registered person should be registered or
should continue to be registered;]
the applicant or registered person is not or, as the case may be,
is no longer a fit and proper person to be registered.
* * * * * * *
(2) Notwithstanding
anything in the foregoing provisions of this Article, the Committee may attach
such conditions as it thinks fit to the registration of any person and may at
any time vary such conditions.
ARTICLE 6
PENALTY FOR FAILURE TO REGISTER OR TO COMPLY WITH REGISTRATION
CONDITIONS
If any person –
(a) contravenes the
provisions of Article 3 of this Law; or
(b) fails to comply with
any condition attached to his registration;
he shall for each offence be liable to a fine or to imprisonment
for a term not exceeding two years or to both such fine and such imprisonment.
ARTICLE 7
REGISTRATION CERTIFICATES
Where the Committee registers any person it shall issue to that
person a registration certificate, free of charge.
ARTICLE 8
PRODUCTION AND DELIVERY OF REGISTRATION CERTIFICATES
(1) Every
registered person shall –
(a) when required by or on
behalf of the Committee so to do, produce or deliver his registration
certificate to the Committee or to an officer authorized in that behalf;
(b) deliver his
registration certificate to the Committee immediately on the expiration of the
period to which it relates.
(2) If
any registered person fails to comply with the provisions of this Article, he
shall for each offence be liable to a fine not exceeding twenty pounds and to a
further fine not exceeding one pound for each day during which the offence
continues after conviction thereof.
ARTICLE 9
PROCEDURE AND RIGHT OF APPEAL ON REFUSAL OR CANCELLATION OF REGISTRATION
ETC
(1) The
Committee shall not refuse an application for registration or cancel any
registration * * * * * * * * * * * or attach
or vary any condition, unless it has given to the applicant or the registered
person, as the case may be, not less than seven days’ notice in writing
of its intention so to do and of its reasons for so doing, and every such
notice shall contain an intimation that, if within seven days after the receipt
of the notice the applicant or the registered person informs the Committee in
writing that he [so desires], the
Committee [shall],4
before refusing the application cancelling the
registration or attaching or varying the condition, give him an opportunity of
being heard, in person or by a representative.
(2) If
the Committee, after giving to the applicant or the registered person, as the
case may be, an opportunity of being heard, decides to refuse the application
or to cancel the registration or to attach or vary a condition, it shall, if
required by the applicant or the registered person, deliver to him, within
seven days of the receipt of such requirement, particulars in writing of the
reasons for such refusal or cancellation or attaching or variation of the
condition.
(3) Any
person aggrieved by such refusal or cancellation, or by the conditions attached
to his registration or by any variation of such conditions may appeal to the
Inferior Number of the Royal Court, either in term or in vacation, on the
ground that the decision of the Committee was unreasonable having regard to all
the circumstances of the case, and the decision of the Inferior Number of the
Royal Court shall be final and without further appeal, but without prejudice to
the right of the Inferior Number to refer the matter to the Superior Number of
the Royal Court.
(4) Where
any person appeals against the cancellation of his registration or against the
variation of any conditions attached to his registration under paragraph (2) of
Article 5 of this Law, or, where his original registration was granted without any
conditions attached thereto, against any subsequent attaching of conditions,
the registration shall not be cancelled or the conditions varied or attached,
as the case may be, until the appeal has been determined or abandoned.
[ARTICLE 9A
REPRESENTATION TO COURT BY COMMITTEE WHERE REGISTRATION REFUSED OR
CANCELLED
(1) Notwithstanding
the provisions of Article 9 of this Law, where the Committee decides to refuse
an application for registration or to cancel any registration or to attach or
vary any condition, it may represent to the Inferior Number of the Royal Court
that, in order that the interests of persons who have deposited money with the
applicant or the registered person shall not be prejudicially affected, the
business of the applicant or the registered person shall be subject to such
supervision, restraint or conditions from such time and for such period as the
Committee may specify in the representation.
(2) On
the presentation of a representation under this Article, the Court may make
such order as it thinks just.]
ARTICLE 10
PUBLICATION OF NAMES OF REGISTERED PERSONS
The Committee shall from time to time by order cause to be
published the names and addresses of all registered persons, together with such
other information appertaining to such persons as the Committee may think
appropriate.
ARTICLE 11
FALSE STATEMENTS
Any person who, in furnishing any information for any of the
purposes of this Law or of any order made thereunder, makes a statement which
to his knowledge is false in a material particular shall be liable to a fine or
to imprisonment for a term not exceeding two years or to both such fine and
such imprisonment.
ARTICLE 12
FRAUDULENT INDUCEMENT TO INVEST MONEY
Any person who, by any statement, promise or forecast which he
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 him 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; or
(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; or
(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 seven 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.
ARTICLE 13
ORDERS
(1) The
Committee may by order make provision for the purpose of carrying this Law into
effect and, in particular but without prejudice to the generality of the
foregoing, for prescribing any matter which is to be prescribed under this Law.
(2) The
Subordinate Legislation (Jersey) Law, 1960, shall
apply to orders made under this Law.
ARTICLE 14
SERVICE OF NOTICES
(1) Any
notice required by this Law to be given to a person being a body corpotare shall be duly given it if is given to the
secretary or clerk of the body corporate.
(2) Subject
to the provisions of this Article, any notice required by this Law to be given
to any person may be given –
(a) by delivering it to
that person; or
(b) by leaving it at his
proper address; or
(c) by registered post; or
(d) by the recorded
delivery service.
ARTICLE 15
OFFENCES BY MANAGERS, AGENTS ETC
Where an offence for which a registered person is liable under this
Law had, in fact, been committed by some manager, agent, servant or other
person, the manager, agent, servant or other person, as well as the registered
person, shall be deemed to be guilty of that offence and shall be liable to be
prosecuted and punished accordingly.
ARTICLE 16
SHORT TITLE AND COMMENCEMENT
(1) This
Law may be cited as the Depositors and Investors (Prevention of Fraud) (Jersey)
Law, 1967.
(2) This
Law shall come into force at the expiration of the period of four months from
the date on which the first order under Article 4 of this Law is made.
A.D. LE BROCQ,
Greffier of the States.