Jersey Financial Services Commission: re-appointment of Commissioners

2019  R.103

2 REPORT

Summary

Mr. Simon Morris and Mr. Peter Pichler will be completing the end of their 5 year terms as Commissioners of the Jersey Financial Services Commission ("Commission") on 20th January 2020. The Board of Commissioners ("Board") has recommended that appointments for both be extended for the maximum 4 years. The Minister for External Relations has accepted this recommendation and proposes that the appointments of Mr. Simon Morris and Mr. Peter Pichler be extended for 4 years from 21st January 2020.

Background

The Commission was established under the Financial Services Commission (Jersey) Law 1998 ("Commission Law") to supervise and develop financial services in Jersey, provide advice and assistance to States Members in relation to financial services, and uphold regulatory standards which –

reduce risk to the Public of financial loss due to dishonesty, incompetence, malpractice or the financial unsoundness of financial service providers;

protect and enhance the reputation and integrity of Jersey in commercial and financial matters;

safeguard the best economic interests of Jersey; and

counter financial crime in both Jersey and elsewhere.

The  Commission's  Board  of  Commissioners  considered  Commissioner  Morris's performance as a Commissioner during his first term of office. It was noted that the Board benefits hugely from the presence of a UK solicitor with financial services and regulatory expertise.

Legal framework

Article 3 of the Commission Law deals with the appointment of Commissioners. It provides that the Minister for External Relations shall make the appointment. Article 3 provides in full as follows –

"3  Appointment of Commissioners

1. The Commission shall consist of –

1. a Chairman;
2. not less than 5 other Commissioners; and
3. the Director General appointed under Article 10 as an ex- officio Commissioner.

2. The Minister shall appoint –

1. the Commissioners referred to in paragraph (1)(a) and (b); and

R.103/2019

3

2. a  Commissioner  (other  than  the  Director  General)  to  be Chairman of the Commission.

(2A)  Article 2 of the States of Jersey (Appointment Procedures) (Jersey)

Law 2018 shall apply to the appointment of the Chairman and other Commissioners.

3. The Commissioners shall include –

1. persons  with experience of the  type  of financial services supervised by the Commission;
2. regular users on their own account or on behalf of others, or representatives of those users, of financial services of any kind supervised by the Commission; and
3. individuals representing the public interest,

and the composition of the Commission shall be such as to secure a proper balance between the interests of persons carrying on the business of financial services, the users of such services and the interests of the public at large.

4. The  Minister  shall  appoint  one  Commissioner  referred  to  in paragraph (1)(b) to be Deputy Chairman.
5. The functions, powers, rights and obligations of the Commission shall not be affected by any vacancy in its membership.".

The term of appointment of a Commissioner is prescribed by Part 2 of Schedule 1 to the Commission Law, which reads as follows –

"(2)  A Commissioner shall be appointed by instrument in writing for a

period not exceeding 5 years and upon expiry of such period shall be eligible for reappointment.

(2A)  Despite paragraph (2), the total period for which a person may hold

office as a Commissioner shall not exceed 9 years.

(2B)  Article 2 of the States of Jersey (Appointment Procedures) (Jersey)

Law 2018 shall apply to an  extension of the  appointment of a Commissioner.".

Appointment

As set out above, the Commission Law provides that the Minister, being the Minister for  External  Relations  currently,  shall  appoint  Commissioners.  The  Board  has recommended that the appointments of Mr. Simon Morris and Mr. Peter Pichler be extended for a maximum 4 year term from 21st January 2020.

R.103/2019