Law drafting instructions in relation to appointments under the Financial Services Commission (Jersey) Law 1998

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A decision made 24 March 2010 regarding: Law drafting instructions in relation to appointments under the Financial Services Commission (Jersey) Law 1998 (“the Law”).

Decision Reference: MD-E-2010-0053
Decision Summary Title:	Law drafting instructions in relation to appointments under the Financial Services Commission (Jersey) Law 1998		Date of Decision Summary:	22 March 2010
Decision Summary Author:	Director, Finance Industry Development		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title:	Law drafting instructions in relation to appointments under the Financial Services Commission (Jersey) Law 1998		Date of Written Report:	22 March 2010
Written Report Author:	Director, Finance Industry Development		Written Report : Public or Exempt?	Public
Subject: Law drafting instructions in relation to appointments under the Financial Services Commission (Jersey) Law 1998 (“the Law”).
Decision(s) The Minister approved the recommended amendments to the Law and requested the Jersey Financial Services Commission (“the Commission”) to prepare the necessary law drafting instructions.
Reason(s) for Decision: The Commission has recommended that certain provisions of the Law relating to the appointment of Commissioners be amended in order to allow the Commission to more clearly demonstrate compliance with international standards for transparency and operational independence.
Resource Implications: There are no financial or manpower implications for the States of Jersey.
Action required: The Economic Development Department to notify the Commission and the Law Draftsman of this decision in order that drafting instructions can be prepared.
Signature: Senator A.J.H.Maclean		Position: Minister for Economic Development
Date Signed:		Date of Decision:

Law drafting instructions in relation to appointments under the Financial Services Commission (Jersey) Law 1998

The Minister for Economic Development (“the Minister”)

Law drafting instructions in relation to appointments under the Financial Services Commission (Jersey) Law 1998

1. ISSUE AND RECOMMENDATION

1.1. The Jersey Financial Services Commission (“the Commission”) has recommended that certain provisions of the Financial Services Commission (Jersey) Law 1998 (“the Law”) relating to the appointment of Commissioners be amended in order to allow the Commission to more clearly demonstrate compliance with international standards for transparency and operational independence.

1.2. There are no financial or manpower implications for the States.

1.3. It is recommended that the Minister approves the Commission’s recommended amendments to the Law and requests the Commission to prepare the necessary law drafting instructions.

2. BACKGROUND

2.1. The IMF report in relation to banking business in Jersey recommended that the Law should be amended to provide an explicit requirement that the reasons for the dismissal from office of any commissioner be made public.

2.2. When considering the IMF recommendation, it was noted that although it is the States that appoints Commissioners under the Law, the Minister may terminate the appointment of a Commissioner without the need for a States debate. This contrasts with the position for appointments under the Data Protection (Jersey) Law 2005, the Competition Regulatory Authority (Jersey) Law 2001 and the Gambling Commission (Jersey) Law 200-, under which the level of authority required for terminating an appointment is the same as that for making the appointment.

2.3. The Commission has proposed that the Law should be amended to provide that if the Minister is satisfied that any of the relevant grounds for terminating a Commissioner’s appointment apply, the Minister would make a recommendation to the States for termination of the appointment. The recommendation would be debated by the States in camera and if it is decided to terminate the appointment, both the decision and the reasons for it would be made public (unless the States decides that only the Commissioner should be informed of the reasons).

2.4. Minor amendments are required in relation to the appointment and termination of the Deputy Chairman and to remove an obsolete reference relating to a former requirement that the Chairman must be a member of the Finance and Economics Committee.

3. RECOMMENDATION

3.1. It is recommended that the Minister approves the Commission’s recommended amendments to the Law and requests the Commission to prepare the necessary law drafting instructions.

DIRECTOR, FINANCE INDUSTRY DEVELOPMENT

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2010-02-25

Law drafting instructions in relation to appointments under the Financial Services Commission (Jersey) Law 1998

Information about the publication of Ministerial Decisions

A decision made 24 March 2010 regarding: Law drafting instructions in relation to appointments under the Financial Services Commission (Jersey) Law 1998 (“the Law”).