Jersey Financial Services Commission: appointment of Commissioners

JERSEY FINANCIAL SERVICES COMMISSION: APPOINTMENT OF COMMISSIONERS _______________

Lodged au Greffe on 17th April 2001 by the Finance and Economics Committee

______________________________

STATES OF JERSEY

STATES GREFFE

180             2 0 0 1    P . 6 5          

Price code: B

PROPOSITION

THE STATES are asked to decide whether they are of opinion -

in pursuance of Article 3 of the Financial Services Commission (Jersey) Law 1998, as amended, to re-appoint the undermentioned persons as Commissioners of the Jersey Financial Services Commission, with effect from 1st June 2001 for a period of three years, until 31st May 2004 -

M r . R ic h a rd J ohn Pirouet

M r . G e o f f re y Colin Powell, OBE

FINANCE AND ECONOMICS COMMITTEE

REPORT

The appointment of Commissioners to the Jersey Financial Services Commission is dealt with in Article 3 of the Financial Services Commission (Jersey) Law 1998. Paragraph (1) reads as follows -

"( 1 ) The Commission shall consist of -

(a ) a Chairman; and

(b ) not less than six other Commissioners.". Paragraph (1A) reads as follows -

" (1 A ) The Commissioners shall be appointed by the States from persons nominated by the Committee and

such appointments shall be debated in camera.".

Paragraph (2) states -

"( 2 ) The Commissioners shall include -

(a ) persons with experience of the type of financial services supervised by the Commission;

(b ) 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

(c ) 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.".

This proposition addresses the appointment of two of the current Commissioners, whose three-year terms conclude on 31st May 2001, but who have indicated that they are prepared to serve for a further term.

The Committee wishes to nominate two of the current Commissioners for re-appointment.

The third Commissioner appointed for a three-year period, Advocate Julian Clyde-Smith, has decided to stand down at the end of May. The Committee has already instigated what will be an open and transparent process for the recruitment of a local Commissioner to replace him. The Committee would wish to take this opportunity publicly to acknowledge and express its appreciation of Advocate Clyde-Smith's considerable and greatly valued contribution to the role of the Commission, both during his term of office and as a member of the organising committee charged with planning the setting up of the Commission in 1998.

The Finance and Economics Committee wishes to nominate the following persons for appointment as Commissioners by the States -

Richard John Pirouet

Currently the Deputy Chairman of the Commission. He qualified as a chartered accountant in 1969 and was appointed as a partner of one of the predecessor firms of Ernst & Young in 1974.

Mr. Pirouet became managing partner of Ernst & Young in 1991 and combined this role with acting as senior partner from 1994 until his retirement from the firm on 31st March 1998.

Geoffrey Colin Powell, OBE

Currently the Chairman of the Commission. He started his career in the Economic Office of the British Iron and Steel Federation and went on to become an Economic Adviser for the Government of Northern Ireland.

Mr. Powell first came to the Island in 1969 as Economic Adviser to the States of Jersey, a post he held until 1992 when he became Chief Adviser. He retired from this position at the end of 1998.

Since 1981, he has held the position of Chairman of the Offshore Group of Banking Supervisors.

He is the author of the Economic Survey of Jersey (1971), numerous articles on the Island's economy and is currently engaged in writing a definitive history of Jersey as an international finance centre.

As part of the initial appointment of Commissioners agreed by the States in May 1998, it was considered appropriate to ensure that the terms of office of the Commissioners did not terminate all at the same time. It is proposed therefore that the period of appointment of the above should be for three years to 31st May 2004. Of the remaining five Commissioners, four have current terms ending on 30th November 2002 and one, the Director General, has a current term ending on 31st December 2001.

This proposition has no implications for the financial or manpower resources of the States.