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Jersey Financial Services Commission - Appointment of Commissioners

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JERSEY FINANCIAL SERVICES COMMISSION: APPOINTMENT OF COMMISSIONERS _______________

Lodged au Greffe on 8th October 2002 by the Finance and Economics Committee

______________________________

STATES OF JERSEY

STATES GREFFE

150 2002 P.181

Price code: C

PROPOSITION

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

  in p u r s uance of Article 3 of the Financial Services Commission (Jersey) Law 1998, as amended, to approve as

Commissioners of the Jersey Financial Services Commission with effect from 1st December 2002 for a period of 3 years -

  (a ) th e re-appointment of Jurat John Claude Tibbo, Mr. Andrew Winckler and Mr. Scott Jamieson Dobbie, CBE;

and

  (b ) th e appointment of Advocate Michael Henry Clapham. FINANCE AND ECONOMICS COMMITTEE

REPORT

The appointment of Commissioners to the Jersey Financial Services Commission is dealt with in Articles 3 and 4 of the Financial Services Commission (Jersey) Law 1998, as amended.

Paragraph (1) of Article 3 reads as follows -

"(1) The Commission shall consist of -

  1. a Chairman; and
  2. not less than six other Commissioners.".

Paragraph (1A) reads as follows -

"(1A) The States shall appoint-

  1. th e Commissioners from persons nominated by the Committee; and
  2. a Commissioner nominated by the Committee to be Chairman of the Commission, and the appointments shall be debated in camera.".

Paragraph (2) states -

"(2) 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 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.".

Pursuant to paragraph (2) of Article 4, the term of appointment of a Commissioner is prescribed by Part II of the First Schedule, paragraph  1(2) of which reads as follows-

" (2 ) A commissioner shall be appointed by instrument in writing for a period not exceeding three years and

upon expiry of such period shall be eligible for reappointment.".

As part of the initial appointment of Commissioners, agreed by the States in May 1998, it was considered appropriate to ensure appointments should not terminate all at the same time. Presently there are nine Commissioners. The term of appointment for four of these expires on 30th November 2002; three of whom have agreed to be considered for re- appointment. This proposition therefore addresses two different matters -

  (a ) T he re-appointment of three of the current Commissioners whose present terms conclude on 30th November

2002.

  (b ) T he appointment of a new Commissioner (the culmination of a recent recruitment exercise), to replace one other whose term will also conclude on 30th November 2002 and who does not wish to continue.

Re-appointment of existing Commissioners

The Finance and Economics Committee, having regard to the need to maintain the existing balance of interests which the statute requires and to the value of having among the Commissioners persons who have recognised extensive regulatory experience outside the Island, wishes to nominate the following persons for re-appointment by the States:

Jurat John C. Tibbo

In 1996 John Tibbo retired from a 37 year career with Midland Bank in Jersey where he held a number of management positions, including Divisional Director, Offshore Islands. As well as being a Jurat of the Royal Court, he holds a number of non-executive directorships in several Channel Island companies. He originally took up his appointment as a Commissioner of the Jersey Financial Services Commission on 31st May 1998, as one of three who were appointed for an eighteen month period initially.

Andrew Winckler

A former Chief Executive of the Securities and Investments Board/the Financial Services Authority in the United Kingdom, Andrew Winckler started his career in H.M. Treasury before moving to the City where he held senior positions in Lloyds Bank Group and Hoare Govett. Mr. Winckler was previously Deputy Chairman of the Securities and Futures Authority and Deputy Chairman of European Capital Company. His current business activities include Chairman of Ernst & Young's Regulatory Practice in the United Kingdom, member of the Board of the Housing Corporation and Senior Independent Director of CRESTCo Limited. Andrew Winckler was also originally appointed for an eighteen month period, which began on 31st May 1998.

Scott Jamieson Dobbie, CBE

Scott Dobbie worked in industrial marketing in Unilever and ICI for eleven years following graduation from the University of Edinburgh. Thereafter he had thirty years' experience in stockbroking and investment banking, and remains an adviser to Deutsche Bank. He was chairman of CRESTCo from 1996 to 2001 and a director of the securities and Futures Authority from 1993 to 2001. He is currently a member of the Regulatory Decisions Committee of the Financial Services Authority. He is also Chairman of both the Securities Institute and Standard Life European Private Equity Trust and is a director of The Edinburgh Investment Trust plc, Premier Oil plc and other companies. Scott Dobbie has served as a Commissioner since 1st December 1999.

A CV for each of these persons is attached at Appendix A to this Report. Appointment of a new Commissioner

The fourth Commissioner whose term of appointment will conclude on 30th November 2002 is Advocate Francis Hamon, OBE. He has decided not to seek re-appointment. The Committee therefore wishes to nominate a replacement. In doing so, the Committee has had regard to the need to ensure the maintenance of the balance of Commission representatives as required by the Financial Services Commission (Jersey) Law 1998, as amended, and recommended by the "Review of financial regulation in the Crown Dependencies" (the Edwards Report).

The search for a suitable replacement has been conducted in an open and transparent manner. The process of identifying the most appropriate candidate included an advertisement in the recruitment pages of the Jersey Evening Post, thereby giving all potential candidates a full opportunity to apply. The Jersey Appointments Commission determined that the appointment should be subject to its procedures, which aim to demonstrate probity, openness and independent scrutiny in public appointments, made on merit. The Appointments Commission has accepted the integrity of the process adopted.

Advocate Hamon represented the interests of the wider community of the jurisdiction on the Board of Commission, in addition to bringing the benefits of the considerable experience gained in legal practice. In order to satisfy the requirements for balance described above, it was felt that the same abilities were the most important criteria to be applied in selecting his replacement.

As can be seen from the details below, this recruitment process has resulted in the opportunity for the Island to benefit from the wealth of experience, as a highly respected representative of the Jersey community, possessed by the nominated individual. The Finance and Economics Committee wishes to nominate the following person for appointment by the States:

Michael Henry Clapham

Advocate Clapham's entire working career has been in general legal practice with one local firm, which in 1995 became part of Ogier & Le Masurier. Now a consultant with the same firm, as a partner for more than 30 years he gained a thorough appreciation of the need of local industry to be innovative, flexible and enterprising, whilst still adhering to high regulatory standards. His extensive local knowledge combined with the broad nature of his legal practice over so many years means that he will be well placed to represent the interests of the wider local community. His role as former President of the Jersey Law Society demonstrates the regard in which he is held in that community.

A CV for Advocate Clapham is attached at Appendix B to this Report.

CURRICULUM VITAE FOR NOMINEES FOR RE-APPOINTMENT AS COMMISSIONERS ____________

JOHN CLAUDE TIBBO Jurat of the Royal Court

Date of Birth 3rd January 1940 Address La Huittieme

Rue de la Clochette St. Martin

Jersey JE3 6HA Telephone number 01534 851599

Fax number 01534 858759 Executive Positions held within Midland Bank

Retired 31st January 1996

1993-1996 Divisional Director, Offshore Islands 1985-1993 Area Manager, Jersey

1983-1985 Manager, Library Place, Jersey 1978-1983 Manager, Hill Street Branch, Jersey

Prior to the above dates, various other Management positions were held within Midland Bank Plc including at Head Office and Regional Head Office level.

Joined Midland Bank in Jersey in January 1959 after two years with the then Jersey Savings Bank (now Lloyds-TSB Bank Channel Islands).

Current Directorships

Acorn Income Fund Ltd.

A De Gruchy Holdings Ltd.

Channel Islands Development Corporation Ltd.

Charles Le Quesne (1956) Ltd.

HSBC Bank Middle East

Jersey Milk

Jersey Waterfront Enterprise Board Ltd.

Nordar Ltd.

Norman Group Ltd.

Norman Holdings Ltd.

The Regent Strategy Fund Ltd.

Securicor (Jersey) Limited (with effect from Oct/Nov 2002) Standard Bank Jersey Ltd.

Standard Bank Offshore Group Ltd.

Commissioner with the Jersey Financial Services Commission

Other Interests

Trustee of J.C. Norman No. 2 Trust

Trustee of Wallbrook Channel Islands Pension Scheme

Vice-Chairman of the Royal National Lifeboat Institution, Jersey Branch Member and Past President of the Lions Club of Jersey

Member of Jersey Humane Society

Member and Past Captain of the Royal Jersey Golf Club

Past President of the Old Victorian Association

Personal

Married to Dorothy and they have two daughters, Heather and Karen. Heather is a lawyer working in London and Karen currently works in Rome with DFID.

____________

ANDREW WINCKLER

Rolls House, 7 Rolls Buildings, Fetter Lane, EC4A 1NH

Current Business Interests Commissioner  of  Jersey  Financial  Services

Commission

Chairman of Ernst & Young regulatory practice in

the U.K.

Member of the Board of The Housing Corporation Senior Independent Director of CRESTCo Limited Trustee, Kennedy Memorial Trust

QMW, Member of Council

Financial Services The SIB  was  the  senior regulatory body in the Authority/Securities and U.K. for investment business under the Financial Investments Board Services Act. The SIB changed its name to the 1994-1998 Financial Services Authority in October 1997 to

prepare  for  the  merger  of  other  regulatory functions in financial services.

1996-1998 Chief Executive

Repositioned  the  organisation  and

management team in anticipation of current restructuring of City regulation.

R educed planned costs by 5%.

Initiated  statutory  enquiries  into  metals market with multi-disciplinary team.

Im  proved communication and relationship of SIB within the market place.

De  veloped  government  confidence  in  the

SIB to act as the main vehicle for planning structural change in the regulatory system.

Dealt  with  media,  government  and Parliament  to  raise  the  organisation's

standing  to  ensure  positive  communication with these groups.    R esponsible for dealings at Board level with

wide  range of financial institutions  (banks, insurance  companies,  securities  houses  and exchanges).

1994-1996 Member of SIB Board and Head of Supervision

Recruited to set up new Supervision Group of 50

professionals (following recommendation of Large

report  to  the  Chancellor)  to  supervise  some  20

organisations - the self regulatory organisations,

exchanges, clearing houses and other professional

bodies  under  the  Financial  Services  Act.  Led

project  to  review  transparency  of  the  London

equity market, co-ordinated response of exchange

and regulatory authorities to collapse of Barings. European Capital Deputy Chairman, Founder Director and Head of 1990-1994 Corporate Finance

European  Capital  was  established  in  1990,

specialising  in  international  project,  trade  and corporate finance. European Capital operates from 3  Lombard  Street,  London  (Chairman,  Sir  John Caines).  Corporate  finance  department  advised utilities  on  price  regulation,  conversion  to  plc status and advised corporates generally on capital raising  in  the  international  markets  in  London. Advised or structured some £500m of debt issues for  The  Housing  Finance  Corporation.  Advised Hungarian  Government  on  introducing  private capital  into  the  water  industry.  Advised  World Bank mission to Hungary.

Deputy Chairman (non-executive), Securities and Futures Authority and Chairman of Enforcement

Committee and International Capital Committee. Hoare Govett Director,  Corporate  Finance,  Hoare  Govett  and 1987-1990 Director,  Security  Pacific  Hoare  Govett.

Management  responsibility  for  swaps  and  debt

origination.  In  corporate  finance,  specialised  in

utility sector and advised a leading French group

on four successful acquisitions in the U.K.

Lloyds Bank Lloyds  Bank  International:  Manager  loan International syndications: responsible for origination of some 1982-1987 US$1.5  billion  syndicated  international  loans.

Director  and  Head  of  Business  Development, Lloyds Merchant Bank. Expanded product range and  client  base  in  series  of  profitable  capital markets transactions.

HM Treasury H.M.  Treasury,  head  of  one  of  the  expenditure 1981-1982 control units.

1978-1981 First  Secretary  (Financial),  British  Embassy

Washington DC U.S.A. Responsible for dealings with US Administration and Congress on financial and tax matters.

1978 Treasury  representative  on  review  team  to

overhaul Exchequer and Audit Department, which subsequently  led  to  setting  up  of  the  National Audit Office.

1975-1978 H.M.  Treasury:  Head  of  unit  responsible  for

export finance and overseas investment protection policy. Introduced new programme of financing export credit in foreign currencies.

1974-1975 Cambridge University (Economics Course). 1970-1974 H.M. Treasury: public expenditure control, foreign

exchange control and Chancellor's Office (Private Secretary to Tony Barber and Denis Healy).

PERSONAL DETAILS

Education Bedford Modern School.

Christ's College Cambridge (MA Dip Econ)

Open Exhibition 1967. Scholarship 1969. Professional Member Securities Institute.

Fellow Royal Geographical Society.

Nationality British.

Date of Birth 8th January 1949.

Family Married with three sons.

Interests Bridge, Opera, 20th Century British Art, Reading,

Gardening.

____________

SCOTT JAMIESON DOBBIE, CBE CAREER HISTORY:

1961-1972 T r ainee with Unilever, after University of Edinburgh, followed by experience in both Unilever and later ICI (1966-72) in

marketing and market planning.

1972-1986 W ood Mackenzie & Co.

    1 9 7 5   P a rt n er  

    1 9 8 2   M a n a ging Partner

    1 9 8 4   M a n a ging Director (on incorporation)

    In v o l v e d in i tially in research and sales to institutional investors, with a gradual move to the broader role of developing a

business, which grew in staff from 50 to 850 in the period 1972-86.

1986   W o o d M  ackenzie acquired by Hill Samuel Group. Appointed additionally a Managing Director of Hill Samuel & Co.

1988-98   W o o d  Mackenzie  acquired  by  National  Westminster  Bank.  Chairman  of  NatWest  Securities  Ltd.,  the  pan-European institutional equity arm of NatWest Group. Prime responsibility for senior client and corporate relationships, regulation and

governance. Also Chairman of NCB Group (Dublin), Director (and Chairman, Audit Committee) of NatWest Markets Inc.

(U.S.A.), and other NatWest Group companies in Europe and Asia.

April 1998 L eads negotiations for the transfer of NatWest Equities business to Bankers Trust. Heavily involved in integration of this

business into Bankers Trust International, of which appointed Vice Chairman.

June 1998 Ap  pointed CBE - for services to financial regulation.

June 1999 B ankers Trust acquired by Deutsche Bank.

July 1999 On retirement, widened range of Board and other appointments, as follows:

Company Name Title Appointed

Securities Institute and its Subsidiary Companies:

Securities Institute Chairman 15th July 1999 Securities Institute (Services) Ltd. Director 6th January 2000 Institute of Wealth Management Director 28th February 2001

Other Companies:

FRESCO SICAV (overseas company) Scott ish Financial Enterprise

Standard Life European Private Equity Trust

Financial Services National Training Organisation

Premier Oil plc

Murray VCT4 PLC

Deutsche (Scotland) Ltd.

Jersey Financial Services Commission

BT Pension Fund Trustees Ltd. (note BT = Bankers Trust)

The Edinburgh Investment Trust plc


Director 7th September 2001 Director 3rd September 2001 Chairman 25th April 2001

Director 1st April 2001 Director 4th December 2000 Director 19th January 2000 Deputy 21st June 1999 Chairman

Commissioner 19th November 1999

Director 14th July 1998 Director 20th April 1998

OTHER APPOINTMENTS:

Member of Financial Services Authority, Regulatory Decisions Committee, Member of London Investment Banking Association, Securities Trading Committee.

PERSONAL

Born 1939; Married with two adult daughters. Fellow, Securities Institute.

CURRICULUM VITAE FOR

NOMINEE FOR NEW APPOINTMENT AS COMMISSIONER ____________

MICHAEL HENRY CLAPHAM

Home Address Les Raisies,

La Rue des Raisies, St. Martin ,

Jersey JE3 6AT

Telephone: 01534 852796 Fax: 01534 855832

Office: c/o Ogier & Le Masurirer,

Whiteley Chambers,

Don Street,

St Helier,

Jersey JE4 9WG

Telephone (Direct): 01534 504275 Fax (Direct): 01534 504125

Date of Birth: 5th August 1940 Education: Victoria College, Jersey.

Wadham College, Oxford.

Qualifications: MA(Oxon) (English Language and Literature)

English Bar Examinations 1965.

Jersey Advocates' Examination and admission as

an Advocate of the Royal Court of Jersey - 1966. Career: Salaried  Partner,  Le  Masurier  Giffard  &  Poch

(Advocates & Solicitors), 1967 - 1970.

Partner, Le Masurier, Giffard & Poch (Advocates & Solicitors), 1970 - 1995 (Senior Partner 1975 - 1995). Partner,  Ogier  &  Le  Masurier,  Advocates  & Solicitors, 1995 - 2001.

President  of  the  Law  Society  of  Jersey  1997 - 2001

Consultant to Ogier & Le Masurier 2001 to date.