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Information and public services for the Island of Jersey

L'înformâtion et les sèrvices publyis pouor I'Île dé Jèrri

Financial Services: Future Direction in Jersey

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A decision made on 5 June 2013:

Decision Reference: MD-TR-2013-0037

Decision Summary Title:

Future Direction of Financial Services in Jersey

Date of Decision Summary:

5 June 2013

Decision Summary Author:

Treasurer of the States

Decision Summary:

Public or Exempt?

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

n/a

Written Report

Title:

Long Term Planning – Financial Services

Date of Written Report:

5 June 2013

Written Report Author:

Director, Finance Industry Development

Written Report :

Public or Exempt?

Public

Subject:   Future Direction of Financial Services in Jersey

Decision(s):  The Minister for Treasury and Resources agreed to the following actions:

 

  1. That the Chief Minister prepares a set of Terms of Reference to be drafted that set out the specific responsibilities and accountabilities of the Chief Minister, the Minister for Treasury and Resources and the Minister for Economic Development, and sets out the delegations being put in place by the Chief Minister to the Minister for Treasury and Resources for Financial Services matters and the Minister for Economic Development for public sector reform.
  2. To transfer responsibility for the development and maintenance of Anti-Money Laundering (AML) legislation from the Minister for Treasury and Resources to the Chief Minister excluding the administration of the Criminal Offences Confiscation Fund under the Proceeds of Crime (Jersey) Law 1999.
  3. That the Chief Minister should present a Report to the States outlining the changes to Ministerial reporting
  4. That the Chief Minister lodges Regulations under the States of Jersey Law 2005 in order to transfer the legal responsibilities under the relevant AML laws.
  5. The Accounting Officer for the administration of the JFL grant will be vested with the Director of Financial Services.
  6. The Minister for Treasury and Resources approved the transfer of revenue budget of £996,800 for 2013, £1,016,500 for 2014 and £1,016,500 for 2015 and 5 FTEs from the Minister for Economic Development to the Chief Minister. These changes will be substantiated in the next Medium Term Financial Plan 2016 to 2019.

Reason(s) for Decision:  The Chief Minister has considered the recommendations from the McKinsey Report and discussed them with the Economic Development Minister and Minister for Treasury and Resources.  The Economic Development Minister agrees that overall accountability and responsibility for financial services should reside with the Chief Minister. 

 

To achieve this having considered the other significant elements of the Chief Minister’s workload, the proposal is that whilst formal political accountability and responsibility will always rest with the Chief Minister, the Minister for Treasury and Resources would provide support under delegation from the Chief Minister to develop a relationship with industry and take forward the implementation of the recommendations of the Financial Services review. The Minister for Treasury and Resources will work closely with the Chief Minister and the Economic Development Minister in the development and delivery of the outcomes arising from the McKinsey review. To ensure that all aspects of Financial Services oversight rest with the Chief Minister, responsibility for Anti-money Laundering (AML) will transfer from the Minister for Treasury and Resources to the Chief Minister.

 

The executive functions to support this transfer to the Chief Minister’s department will require relevant budget responsibility to be transferred from the Minister for Treasury and Resources to the Chief Minister.  

 

As the implementation of the recommendations of the Financial Services review will significantly increase the Chief Minister’s workload even with the support from the Minister for Treasury and Resources, the Chief Minister has considered how best to manage the major initiatives currently being delivered as part of the Strategic Plan. 

 

The executive functions to support this transfer to the Chief Minister’s department will require budget, staff and legislation responsibility to be transferred from the Economic Development Minister to the Chief Minister.  

 

The key function of financial services will have formal Terms of Reference established to provide clarity for the respective roles and responsibilities of the Chief Minister, Economic Development Minister and Minister for Treasury and Resources.  The politicians will be supported by senior officers from the Chief Minister’s Department, Economic Development Department and Minister for Treasury and Resources. Formal weekly political meetings will be held between the Chief Minister, Minister for Treasury and Resources and the Economic Development Minister with supporting officers to ensure the co-ordination of all matters relating to Government’s role in setting and supporting the direction for financial services in the future.

Resource Implications: There are no resource implications involved with this Ministerial Decision other than the departmental budget and staffing transfers.

Action required:  The signed template to be forwarded to relevant departments for notification and to allow for the appropriate actions to be taken.  

Signature:

 

 

 

Position: Senator PFC Ozouf, Minister for Treasury and Resources

 

 

 

Date Signed:

 

 

Date of Decision:

 

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