Jersey Bank Depositors Compensation Board: appointment of States of Jersey representative

STATES OF JERSEY

JERSEY BANK DEPOSITORS COMPENSATION BOARD: APPOINTMENT OF STATES OF JERSEY REPRESENTATIVE

Lodged au Greffe on 27th December 2017 by the Chief Minister

STATES GREFFE

2017  P.128

PROPOSITION

THE STATES are asked to decide whether they are of opinion

in  pursuance  of  Regulation  10  of  the  Banking  Business  (Depositors Compensation) (Jersey) Regulations 2009 to appoint Mr. Tom Fothergill as a member of the Jersey Bank Depositors Compensation Board, with effect from the day following the States debate, for a period of 5 years without remuneration and subject to such other terms and conditions as may be agreed by the Chief Minister.

CHIEF MINISTER

REPORT

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

Part  2  of  the  DCS  Regulations  deals  with  the  establishment  of  the  Board  and appointment of board members ("Members"). Regulations 10 and 11 of the DCS Regulations provides as follows –

"10  Constitution of the Board

1. The Board must have at least 3 members.
2. The members of the Board shall be appointed by the States on the recommendation of the Minister made after consulting with the Appointments Commission.
3. A person shall not be eligible for appointment as a member of the Board if the person is –

1. a member of the States;
2. subject to a disqualification order under Article 78 of the Companies  (Jersey)  Law 1991  or  Article 24(7)  of  the Bankruptcy (Désastre) (Jersey) Law 1990; or
3. bankrupt.

4. The appointment of a person as a member of the Board ceases if the person becomes a person who may not be appointed to be a member of the Board.
5. The rights and obligations of the Board, and the performance of its functions, shall not be affected by –

1. any vacancy in its membership; or
2. any defect in the appointment of a member.

11  Terms and conditions of appointment of members of the Board

1. A person appointed to be a member of the Board –

1. holds  the  appointment  on  terms  and  conditions  agreed between the person and the Minister; and
2. may be reappointed.

2. The terms and conditions must include terms and conditions in respect of –

1. the term of the appointment of the member, being a term not exceeding 5 years;
2. the manner in which the member may resign during that term;
3. the grounds upon which the appointment of the member may be terminated during that term;
4. the remuneration (if any) of the member,

Page - 3 P.128/2017

and may contain such other terms and conditions as the Minister may consider appropriate or necessary.

3. The grounds mentioned in paragraph (2)(c) must include –

1. the  member  being  mentally  or  physically  incapable  of carrying out his or her functions as a member; and
2. the  member being convicted  of an  offence that carries a penalty of imprisonment for a term of 2 years or longer."

Background

Mr. Tom Fothergill

Tom Fothergill was appointed Lead Policy Advisor, Banking and Corporate in the Financial  Services  Unit  of  the  Chief  Minister's  Department  in  October  2017. Mr. Fothergill was previously seconded to the Financial Services Unit in 2015 during which time he facilitated the creation of the Bank (Recovery and Resolution) (Jersey) Law 2017 and supported the Bank Resolution Working Group.

Prior  to  his  appointment  Mr. Fothergill  was  a  private  practice  corporate  lawyer. Mr. Fothergill specialised in the regulation and restructuring of offshore banking and insurance  businesses.  Mr. Fothergill  has  extensive  expertise  advising  on  crisis contingency planning and  on banks' compliance  with resolution and ring-fencing reform programs. Mr. Fothergill has previously served as an officer in the British Army and as a director of a catering management business.

It is appropriate that the States of Jersey and Chief Minister's Department be represented on the Board. Mr. Fothergill is not a budget holder in relation to the Board and his appointment is not a conflict.

It  is  not  necessary  for  Mr. Fothergill's  appointment  to  be  referred  to  the  Jersey Appointments  Commission as he  is  being appointed solely in his capacity as an employee of the States of Jersey.

Other Board Members

The other members of the Board are –

Mr. Paul Leary (Chairman)

Mr. Michael Halsey F.C.A. (Secretary) Advocate Mark Dunlop

Mr. Peter Shirreffs

Financial and manpower implications

There are no financial or manpower implications for the States arising from this proposition.