JERSEY STATEMENT OF INSOLVENCY PRACTICE STATEMENT 1: AN INTRODUCTION TO JERSEY INSOLVENCY PRACTICE STATEMENTS

INTRODUCTION

1. This Jersey Statement of Insolvency Practice (‘JSIP’) is one of a series of guidance notes issued to Practitioners by the Association of Restructuring and Insolvency Experts (‘ARIES’). ARIES is the Channel Islands professional association representing those practising or interested in restructuring and insolvency matters in the Bailiwicks of Jersey and Guernsey.

2. A Practitioner is a person or entity (in the event of a general partner winding up a limited partnership or a limited liability partnership) who undertakes the winding up of a solvent or insolvent company, or the winding up of a foundation, limited partnership or limited liability partnership in Jersey, whether as liquidator, director or otherwise.

PURPOSE AND APPLICATION

3. The purpose of JSIPs is to promote and maintain high standards of Practitioners operating in the Bailiwick by setting out basic principles and best practice procedures in order to harmonise the approach of Practitioners to particular aspects of restructuring and insolvency practice. They have been prepared to complement the prevailing statutory framework and seek to enhance standards across the industry.

4. JSIPs are a voluntary professional association initiative. However, it is the intent of ARIES that all Practitioners should follow JIPs wherever possible and practical.

5. JSIPs are designed to supplement (where appropriate) UK Statements of Insolvency Practice for the purposes of and to apply specifically to all Jersey formal restructuring procedures where a Practitioner has the custody or control of assets and/ or liabilities of an entity as follows: a. Winding up of a company pursuant to Part 21 of the Companies Law; b. Winding up of a foundation or limited liability partnership; and c. Winding up of a limited partnership. STATUTORY STATUS

6. JSIPs are not statements of law in Jersey and should not be relied upon as such. They are intended to provide support for the Jersey law by providing best practice guidance for restructuring and insolvency work in Jersey that augments the Jersey law and established good practice in the Bailiwick.

7. The Royal Court may look to JSIPs for guidance in assessing the conduct of a Practitioner on any issue brought before it.

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8. JSIP1 is derived from the English Statement of Insolvency Practice 1 ‘An Introduction to Statements of Insolvency Practice’ which applies in England and Wales from 1 October 2015.

9. No liability attaches to ARIES or to anybody or person involved in the preparation or promulgation of JSIPs. REGULATORY STATUS

10. JSIPs set out best practice rather than law. The decision on whether to comply with JSIPs rests solely with the Practitioner as does any liability arising from any failure to comply with this, or any other JSIPs. Where a Practitioner is in any doubt about the application of any provision of a JSIP the Practitioner should obtain appropriate guidance from their recognised professional body or Jersey Advocate. PRINCIPLES

11. JSIPs should be read in conjunction with the wider fundamental principles embodied in the following code of ethics (‘the Ethical Code’) and should be applied in accordance with the spirit of that Ethical Code. A literal interpretation of the JSIPs may not be appropriate where it would be contrary to the Ethical Code.

12. A Practitioner is expected to act in accordance with the following:

Integrity: Be straightforward and honest in all professional and business relationships.

Objectivity: Not allow bias, conflict of interest or undue influence of others to override professional or business judgements. If requested by stakeholders or the appointing authority, Practitioners should provide details of any threats identified to compliance with the Ethical Code and the safeguards applied.

Professional Competence and Due Care: Maintain professional knowledge and skill at the level required to ensure that a client or employer receives competent professional services based on current developments in practice, legislation and techniques. A Practitioner should act diligently and in accordance with applicable technical and professional standards when providing professional services.

Confidentiality: Respect the confidentiality of information acquired as a result of professional and business relationships. A Practitioner should not disclose any such information to third parties without proper and specific authority unless there is a legal or professional right or duty to disclose. Confidential information acquired as a result of professional and business relationships should not be used for the personal advantage of the Practitioner or third parties.

Professional behaviour: Comply with relevant laws and regulations and avoid any action that discredits their profession. A Practitioner should ensure that they are adequately resourced. Practitioners should conduct themselves with courtesy and consideration towards all with whom they come in to contact while performing their work. A Practitioner should ensure that their acts, dealing and decision-making processes are transparent, understandable and readily identifiable, where to do so does not conflict with any legal or professional obligation, and that all significant decisions, particularly those relating to the realisation of assets, agreements or the handling of claims, are documented on the working files of the liquidation.

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13. Any Practitioner who becomes aware of another Practitioner who they consider is not complying with, or who has not complied with the relevant laws and regulations and whose actions discredit their profession, should report that Practitioner to that Practitioner’s recognised professional body and to the Viscount, if applicable. GLOSSARY

14. Below are a number of terms used in this and subsequent JSIPs. a. ARIES: the Association of Restructuring and Insolvency Experts. b. Companies Law: the Companies (Jersey) Law 1991, as amended. c. Ethical Code: the code of ethics to be followed by Practitioners, as set out in JSIP1. d. JFSC: the Jersey Financial Services Commission. e. JSIP: a Jersey Statement of Insolvency Practice. f. Practitioner: a person or entity (in the event of a general partner winding up a limited partnership or a limited liability partnership) who undertakes the winding up of a solvent or insolvent company, or the winding up of a foundation, limited partnership or limited liability partnership in Jersey, whether as liquidator, director or otherwise. g. Royal Court: the Royal Court of Jersey. h. Rules: the Bankruptcy (Désastre) Rules 2006. CONSULTATION AND ISSUANCE

15. The JSIPs are issued by the Jersey Legal and Regulatory Committee of ARIES. Prior to issue all JSIPs are exposed to consultation with the following Jersey interested bodies: a. Viscount’s Department b. JFSC c. Jersey Companies Registry d. HM Receiver General e. Law Officers’ Department

16. In addition, JSIPs are circulated to the following interested bodies: a. Law Society of Jersey b. Society of Trust and Estate Practitioners c. Institute of Chartered Secretaries Association d. Jersey Society of Chartered and Certified Accountants e. Institute of Directors (Jersey Branch) f. Jersey Association of Directors and Officers

g. Jersey Funds Association h. Jersey Bankers Association i. Jersey Association of Trust Companies

17. The publication of JSIPs and any amendments will be notified by ARIES in the Jersey Gazette and elsewhere as appropriate.

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