Administrative appeals: duty of administrative body to give reasons

W v JFSC provides important guidance from the Jersey Court that an administrative body is obliged to give reasons for its decisions.

The Jersey Financial Services Commission (JFSC) can issue public statements of censure regarding regulated businesses and individuals. The essence of such statements are often to warn individuals, whether in Jersey or elsewhere, not to deal with the subject matter of the public statement. In this case, the JFSC informed a director of a regulated trust company that was under investigation (W) of its intention to issue a public statement.

W challenged the JFSC's decision on the basis that it had failed to provide reasons for its decision to make a public statement. The Royal Court held that the JFSC was obliged to provide reasons for its decisions to affected persons. The basis for such an obligation is to enable the applicant to know: (1) why the decision has been made; and (2) what material the JFSC relied on in reaching that decision. Here, the JFSC was ordered to provide the reasons by way of a supplemental affidavit.

The decision is important for all regulated entities and administrative bodies as it:

1. clarifies a regulated person's rights to reasons supporting an administrative decision; and

2. shows that the Court is willing to order administrative bodies to provide such information if it is not done so voluntarily.