Banking Business
(General Provisions) (Amendment No. 3) (Jersey)
Order 2011
Made 25th July 2011
Coming into force 25th
January 2012
THE MINISTER FOR ECONOMIC DEVELOPMENT, in pursuance of Articles 8, 9, 20 and
51 of the Banking Business (Jersey) Law 1991[1], orders as follows –
1 Interpretation
In this Order, “principal Order” means the Banking Business
(General Provisions) (Jersey) Order 2002[2].
2 Article 1
amended
For Article 1(1) of the principal Order, there shall be
substituted the following paragraph –
‘deposit’, in
relation to a deposit advertisement, means the deposit in relation to which the
advertisement contains –
(a) an invitation to make such a deposit; or
(b) information that is intended or might
reasonably be presumed to be intended to lead directly or indirectly to the
making of such a deposit;
‘deposit-taker’
means, in relation to a deposit, the person carrying on the deposit-taking
business taking the deposit;
‘the Law’ means
the Banking Business (Jersey) Law 1991[3].”.
3 Article 6
amended
In Article 6(2)(c) of the principal Order, for the words
“Collective Investments Funds (Recognized Funds) (General Provisions)
(Jersey) Order 1988” there shall be substituted the words
“Collective Investment Funds (Recognized Funds) (Rules) (Jersey) Order 2003[4]”.
4 Article 7
amended
In Article 7(a) of the principal Order for the words
“deposit taking” there shall be substituted the words
“deposit-taking”.
5 Article 9
amended
In Article 9(1) of the principal Order, the words “, in
duplicate,” shall be deleted.
6 Article 11
amended
In Article 11(3)(b) of the principal Order for the words
“deposit taking” there shall be substituted the words
“deposit-taking”.
7 Schedule 1
amended
In paragraph 1.3 of Schedule 1 to the principal Order for
the words “deposit taking” there shall be substituted the words
“deposit-taking”.
8 Schedule 2
amended
In Schedule 2 to the principal Order –
(a) in paragraph 1(1)
and (2), for the words “deposit taker” wherever they occur there shall
be substituted the words “deposit-taker”;
(b) in paragraph 1(2)(b),
for the words “deposit taker’s” there shall be substituted
the words “deposit-taker’s”;
(c) in paragraph 1(3),
for the words “Paragraph (2)(b)” there shall be substituted
the words “Sub-paragraph (2)(b)”;
(d) for
paragraph 4, there shall be substituted the following paragraph –
(1) A deposit advertisement must state in
relation to a deposit –
(a) in every case, whether or not the repayment
of the deposit, or the payment of any interest on the deposit, would (to any
extent) be covered under a scheme for compensating depositors, being a scheme established
under Article 37 of the Law; and
(b) in the case where the repayment of the
deposit, or the payment of any interest on the deposit, would (to any extent)
be covered under a scheme for compensating depositors established by law (and
not merely by agreement) outside Jersey, that fact.
(2) Nothing in sub-paragraph (1) prevents
the inclusion in a deposit advertisement of matter relating or apparently
relating to any other scheme, or an arrangement, for covering, guaranteeing,
securing or otherwise protecting (to any extent) deposits, the interest on them,
the repayment of deposits, or the payment of the interest on them.
(3) If a deposit advertisement states or implies
that the repayment of the deposit, or the payment of any interest on the
deposit, would be covered under a scheme referred to in sub-paragraph (1) (or
includes matter as described in sub-paragraph (2) relating or apparently relating
to any other scheme or an arrangement) the advertisement must state –
(a) if, under one or more such schemes or
arrangements, the repayment or payment is guaranteed (or the advertisement
represents that it is guaranteed), the name of the provider of that guarantee;
(b) in every case, the nature and extent of the
cover, guarantee, security, or protection, afforded by each scheme or
arrangement; and
(c) in the case of any scheme referred to in sub-paragraph (1),
the maxima that apply under the scheme as to repayment and payment in respect
of as many of the following as the maxima are applicable to –
(i) an
individual deposit, in the case of any one default by the deposit-taker,
(ii) an
individual depositor, in the case of any one default by the deposit-taker,
(iii) the
aggregate of deposits covered by the scheme, in relation to all deposit-takers
to which the scheme applies.
(4) In the case of a scheme referred to in sub-paragraph (1),
it is sufficient compliance with clause (a) or (b) of sub-paragraph (3)
if a deposit advertisement that refers to the scheme states the address of a
website that sets out the matters specified in that clause.”.
9 Citation
and commencement
(1) This
Order may be cited as the Banking Business (General Provisions) (Amendment
No. 3) (Jersey) Order 2011.
(2) This
Order shall come into force 6 months after it is made.
senator a.j.h. maclean
Minister for Economic
Development