JPF returns – best practice

The deadline for the annual Jersey Private Fund submission by Designated Service Providers has been extended to the end of August. The DSP is responsible for the return and various firms take different approaches in involving the board of the JPF in this process.

With the aim of assisting board members of JPFs in fulfilling their responsibilities, we have summarised some of the examples of best practice published by the Jersey Financial Services Commission following their JPF thematic visit last year:

• An annual compliance checklist being tabled to the JPF Board regarding the JPF’s compliance with the JPF Guide and AML/CFT requirements and the DSP making reference to the JPF’s annual compliance checklist prior to filing the JPF Return with the JFSC;  
• The DSP scheduling the quarterly Board meeting prior to filing the JPF Return with the JFSC, to ensure the information in the return is accurate and the JPF Return has been completed correctly. As part of this process the Directors should review and agree the JPF Return after considering the JPF’s Compliance Monitoring Program and whether any compliance issues have been reported in relation to the JPF;
• The Business Risk Assessment of the DSP clearly referring to the role of the DSP and the duties imposed on the DSP by the JPF Guide;
• The DSP undertaking a full review of its policies and procedures and updating them to meet the requirements of the JPF Guide including applicable AML/CFT requirements; and
• JPF DSP/Administration agreements that detail the DSP services and reflect the duties of the DSP as set out in the JPF Guide.

Additional examples of good practice the JFSC would expect to see reflected in the JPF Board minutes include:

• Compliance reports being a standard agenda item;
• The appointment of the MLRO and MLCO clearly recorded in the initial Board minutes of the JPF; and
• Consideration by the JPF Board of the services the DSP has contracted to provide to it against the DSPs duties set out in the JPF Guide. As well as considering whether the DSP is adequately and effectively delivering these services.

The JFSC would also expect records to be available showing that all individuals connected to JPFs, such as the Board members and key persons of both the DSP and the JPF and the DSP staff, have received training in relation to Section 13 of the AML/CFT Handbook and the JPF Guide.

The full JFSC report is published at
Jersey Private Fund Thematic Review 2021 (jerseyfsc.org) and the JFSC’s examination feedback presentation is at
Watch our Jersey Private Fund (JPF) Thematic Review Webinar — Jersey Financial Services Commission (jerseyfsc.org)