Jersey Bank Depositors Compensation Board: Appointment of Members

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A decision made 5 May 2016:

Ministerial decision reference MD-C-2016-0058
Decision summary title Appointment of Members of the Jersey Bank Depositors Compensation Board
Decision summary author	Director, Finance Industry Development, Financial Services Unit	Is the decision summary public or exempt?		Public
Report title Appointment of Members of the Jersey Bank Depositors Compensation Board
Report author or name of person giving report	Director, Finance Industry Development, Financial Services Unit	Is the report public or exempt?		Public
Decision and reason for the decision The Board is established under the Banking Business (Depositors Compensation) (Jersey) Regulations 2009 (“the Regulations”) to administer the Jersey Bank Depositors Compensation Scheme. The States appointed as Members of the Board for a period of five years: Mr Paul Leary (Chairman); Mr Peter Shirreffs; and the following individuals as Members of the Board for a period of 4 years: Mr Michael Halsey; Advocate Mark Dunlop. The Assistant Chief Minister carrying out the functions of the Board as delegated by the Chief Minister signed the contracts appointing the Board and the contracts of indemnity. The Assistant Chief Minister carrying out the functions of the Board appoints the new Board Members to carry out their functions with one exception. The Director Financial Services Unit, and the Director, Finance Industry Development, Financial Services Unit remain on the bank mandate and remain responsible for signing on behalf of the Board regarding financial matters until the new Board passes a notice removing them from the bank mandate at which time such functions will pass across to the Board.
Resource implications There are no resource implications for the States of Jersey.
Action required Officials to liaise with the Board Members concerning the signed contracts and to arrange for the new bank mandate to be finalised.
Signature			Position Senator P F C Ozouf Assistant Chief Minister

Date signed			Effective date of the decision

Jersey Bank Depositors Compensation Board: Appointment of Members

Appointment of Members of the

Jersey Bank Depositors Compensation Board

1. Issue and Recommendation

1.1. The Jersey Bank Depositors Compensation Board (“the Board”) was established under the Banking Business (Depositors Compensation) (Jersey) Regulations 2009 (“the Regulations”) to administer the Jersey Bank Depositors Compensation Scheme.

1.2. Pursuant to Article 10 of the Regulations, Members of the Board are appointed by the States on the nomination of the Chief Minister.

1.3. The States approved the nomination of the following individuals as Members of the Board for a period of five years:

Mr Paul Leary (Chairman)

Mr Peter Shirreffs

And the following individuals as Members of the Board for a period of 4 years:

Mr Michael Halsey

Advocate Mark Dunlop

1.4. Consequently the contracts appointing the Board and the contracts of indemnity need to be signed by the Minister acting as the Board. Further the Board can be appointed to carry out their functions now that they have been appointed by the States. However as it will take time to transfer the new details onto the bank mandate it is recommended that James Mews and Joe Moynihan remain on the bank mandate and that they remain responsible for signing regarding financial matters until the new Board passes a notice removing them from the bank mandate at which time the signatory functions will pass across.

2. Background

2.1. The Board was established under the Banking Business (Depositors Compensation) (Jersey) Regulations 2009 to administer the Jersey Bank Depositors Compensation Scheme (“the DCS”).

2.2. The Regulations came into force immediately after the States debate in November 2009.

2.3. Since November 2009, the Minister has carried out the functions of the Board pursuant to Regulation 10(7) while the implementation of the DCS has been progressed. A previous board was put in place but as a decision has been made to remunerate the Board other than the States of Jersey representative it was appropriate to re-advertise the positions.

2.4. The implementation of the DCS has progressed and it is now considered appropriate for the Board to assume its functions. As well as the four members of the Board there will also be a representative of the States who will not be formally appointed as a member of the Board but who will sit as a States Participant representing the interests of the States of Jersey. The Director of Finance Industry Development in the Financial Services Unit James Mews has been asked to take up this role.

3. The Board Members

Paul Leary (Chairman)

3.1. Mr Leary was a member of the previous Board. He worked for Lloyds TSB Bank for 17 years, undertaking a wide range of roles, before joining the Jersey Financial Services Commission in 2002 as Senior Manager in the Supervision Division, where he was part of the team who managed the 2002 IMF visit.

3.2. Mr Leary moved to BakerPlatt as Director of Advisory Services in 2005, where he designed and delivered courses on Corporate Governance, Compliance Risk Management and Anti-Money Laundering.

3.3. Mr Leary has been Head of Risk for the Bedell Group since 2008 and has developed and implemented an Enterprise Risk Management framework. Mr Leary has an MBA and is an associate of the Chartered Institute of Bankers.

Michael Halsey

3.4. Mr Halsey retired in 2011 Company Secretary for Standard Bank Jersey Limited where he had worked from 1996 including roles such as Finance Director and Director of many of the incorporated banks in the Standard Bank Group of Banks. Prior to working for Standard Bank he worked for the Brown Shipley Group from 1985 to 1992.

3.5. He is a FCA qualified accountant and commenced his career with Edward Moore & Sons who became Moores Rowland.

Mark Dunlop

3.6. Advocate Dunlop is qualified as a Jersey advocate and is a partner of Bedell Cristin in Jersey. He has over 20 years’ experience in the Channel Islands and London legal and financial services sectors and is recognised as a leading commercial lawyer in Jersey.

3.7. Advocate Dunlop was formerly a partner in a leading City of London law firm in the Banking and Projects Department. He has been actively involved over the last 8 years with the development of the legal regime for companies and security interests.

3.8. He is the author of Dunlop on Jersey Company Law, a member of the Law Society of Jersey, and an Adjunct Professor at the Jersey Institute of Law.

Peter Shirreffs

3.9. Mr Shireffs has over 24 year’s experience at Board level in the financial services industry in Jersey and significant experience of the banking sector.

3.10. He has been the Director of Offshore Retail Banking at RBSI responsible for local and international retail banking in the UAE, Hong Kong, Singapore, Spain and South Africa and the Regional Director of RBSI/Natwest Offshore from 2003-2009.

3.11. Mr Shirreffs has been the Managing Director of The Royal Bank of Scotland Jersey from 1992 to 1995 and held many senior positions within the banking group in the UK and in international finance centres.

3.12. He is a Fellow of the Chartered Institute of Bankers in the UK and Scotland.

Recommendation

4.1. It is recommended that the Minister signs the contracts with the following individuals as Members of the Board for a period of five years:

Mr Paul Leary (Chairman)

Mr Peter Shirreffs

and the following individuals as Members of the Board for a period of 4 years:

Mr Michael Halsey

Advocate Mark Dunlop

4.1. It is recommended that the contracts appointing the Board and the contracts of indemnity are signed by the Minister acting as the Board. Further that the Minister acting as the Board appoints the Board to carry out their functions now that they have been appointed by the States. However, as it will take time to transfer the new details onto the bank mandate it is recommended that James Mews and Joe Moynihan remain on the bank mandate and that they remain responsible for signing regarding financial matters until the new Board passes a notice removing them from the bank mandate at which time the signatory functions will pass across.

DIRECTOR, FINANCE INDUSTRY DEVELOPMENT, FINANCIAL SERVICES UNIT