Today we have published three consultation papers that represent the next phase of our three year roll-out of Jersey's Resolution Regime, as set out in Policy Statement 2023/01 'Resolution Planning and Resolvability'.  A summary of the consultations is set out below.  The documents can also be found on the Consultations page of our website.

  

Consultation Paper 2024/01 'The JRA's MREL Policy'

This consultation paper sets out our policy statement on Minimum Requirements for own funds and Eligible Liabilities (draft MREL Policy Statement), which will apply to Jersey Incorporated Banks.  It follows our MREL Position Paper, published in December 2023, and includes a summary of feedback we received in respect of that position paper.  

The consultation also includes our draft MREL Reporting Template and associate guidance on completing the template (draft MREL Reporting Template Guidance).  

Given the overlap between MREL and the JFSC's capital rules, the consultation period runs to 20 December, to allow consideration alongside the JFSC's planned Basel 3 consultation in quarter four.  

Subject to the feedback we receive, we plan to publish our final MREL Policy Statement in quarter one 2025 along with final versions of the MREL Reporting Template and associated guidance.  

Consultation Paper 2024/02 'The JRA's Valuations Standard'

This consultation paper sets out our draft Valuations Standard and accompanying Valuations Data Set.  The consultation period runs to 1 November.  

Our Valuations Standard builds on the valuation requirements of Policy Statement 2023/01 'Resolution Planning and Resolvability' and sets out our expectations in relation to the capabilities that Jersey Incorporated Banks will need to develop to be able to perform the valuations required to support resolution.  

The Valuations Standard also sets out our expectations of Valuers, guidance to be followed by Valuers when performing the required valuations and our planned approach to ensuring Valuer independence.  

The Valuations Standard is relevant to all Jersey Incorporated Banks and mainly to those that we determined perform Critical Functions in Jersey.  It is also relevant to Valuers who may be appointed by the JRA to perform the required valuations in resolution.

Subject to the feedback we received, we plan to publish final versions of our Valuations Standard and accompanying Valuations Data Set in December ahead of banks' first self-assessment against valuation requirements due 30 June 2025.  

Consultation Paper 2024/03 'Management and Governance and Restructuring Guidance Notes'

This consultation sets out draft Guidance Notes in respect of Management and Governance and Restructuring.  The consultation period runs to 1 November.  

Our Guidance Note on Management and Governance applies to all Jersey Banks and mainly to those that we determined perform Critical Functions in Jersey.  It provides guidance on how Jersey Banks may wish to demonstrate that they meet the Management and Governance requirements set out in Policy Statement 2023/01 'Resolution Planning and Resolvability'.  

Our Guidance Note on Restructuring applies to Jersey Incorporated Banks.  It mainly impacts those that we determined perform Critical Functions in Jersey.  It provides guidance to assist Jersey Incorporated Banks in developing the restructuring capabilities required by Policy Statement 2023/01 'Resolution Planning and Resolvability'.  

Subject to the feedback we received, we plan to publish final versions of the Guidance Notes in December ahead of banks' first self-assessments against Management and Governance and Restructuring requirements due 30 June 2025.