Appointment of Commissioner of the Jersey Financial Services Commission

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A decision made 26 March 2010 regarding: Appointment of Commissioner of the Jersey Financial Services Commission.

Decision Reference: MD-E-2010-0054
Decision Summary Title :	Appointment of Commissioner of the Jersey Financial Services Commission		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 :	Appointment of Commissioner of the Jersey Financial Services Commission		Date of Written Report:	22 March 2010
Written Report Author:	Director, Finance Industry Development		Written Report : Public or Exempt?	Public
Subject: Appointment of Lord Eatwell of Stratton St. Margaret as a Commissioner of the Jersey Financial Services Commission (“the JFSC”).
Decision(s): The Minister agreed the nomination of Lord Eatwell of Stratton St. Margaret for appointment as a Commissioner of the JFSC by the States under Article 3(2)(a) of the Financial Services Commission (Jersey) Law 1998. The Minister approved the proposition and report and that these should be lodged au Greffe for debate on 20 April 2010.
Reason(s) for Decision: Under Article 3(2)(a) of the Financial Services Commission (Jersey) Law 1998, Commissioners of the JFSC are appointed by the States on the nomination of the Minister for Economic Development.
Resource Implications: There are no financial or manpower implications for the States.
Action required: The Greffier of the States to be requested to arrange for theproposition and report to be lodged au Greffe for debate on 20 April 2010.
Signature: Senator A.J.H.Maclean		Position: Minister for Economic Development
Date Signed:		Date of Decision (If different from Date Signed):

Appointment of Commissioner of the Jersey Financial Services Commission

THE MINISTER FOR ECONOMIC DEVELOPMENT (“the Minister”)

Appointment of Commissioner of the Jersey Financial

Services Commission

1. ISSUE AND RECOMMENDATION

1.1. Article 3 of the Financial Services Commission (Jersey) Law 1998 (“the Law”) provides that the States shall appoint Commissioners of the Jersey Financial Services Commission (“the Commission”) from persons nominated by the Minister.

1.2. Following the resignation of Alastair Clark in October 2009, in order to become senior advisor on financial sector and financial stability at Her Majesty’s Treasury, the Commission decided to seek a Commissioner of appropriate standing from outside the Island to fill the vacancy.

1.3. The Board of Commissioners recommends to the Minister that Lord Eatwell of Stratton St. Margaret be nominated for appointment as a Commissioner by the States.

1.4. It is recommended that the Minister approves the proposition and report and that these should be lodged au Greffe for debate on 20 April 2010.

2. BACKGROUND

Search for a new Commissioner

2.1. The Commission Law requires the Board of Commissioners to include persons with experience of the type of financial services supervised by the Commission, regular users of such financial services, and individuals representing the public interest. The Commission Law further requires the composition of the Board to 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.

2.2. To ensure such a proper balance on the Board, the Commission decided to seek a Commissioner of appropriate standing from outside the Island to fill the vacancy.

2.3. The Board, having regard for the need to fill the vacancy created by Alastair Clark’s resignation, undertook a search of persons known to existing and former members of the Board of Commissioners who would both fit the criteria and be prepared to join the Board.

2.4. In undertaking the search, the Board had in mind the following criteria:

• reputation for integrity;

• stature within the United Kingdom finance industry;

• senior management experience in the finance industry, preferably at board level; and

• experience of financial regulation in the United Kingdom.

2.5. Following an extensive search, Lord Eatwell of Stratton St. Margaret, the President of Queens’ College, Cambridge, was approached and signified his interest in the position of Commissioner.

2.6. The Board of Commissioners met with Lord Eatwell in February 2010 and concluded that he met the specified criteria for the vacancy. In March 2010, the Board of Commissioners decided that he was a suitable candidate to fill the vacancy created by the resignation of Alastair Clark. The Board recommends Lord Eatwell to the Minister.

Jersey Appointments Commission

2.7. Given that the Commission were seeking a candidate of appropriate standing from outside the Island to fill the vacancy and were able to approach Lord Eatwell directly, rather than endorsing the selection process in this case, the Jersey Appointments Commission (“JAC”) has recognised the assessment of the Board of Commissioners that Lord Eatwell comfortably exceeds the specified criteria for appointment as a Commissioner.

Lord Eatwell of Stratton St. Margaret

2.8. Lord Eatwell is Professor of Financial Policy at the University of Cambridge and, for a number of years, his work has focussed on issues of financial regulation. He leads a work stream within the Centre for Financial Analysis and Policy (CFAP, a research centre he directs) on financial regulatory issues.

2.9. In 1998, Lord Eatwell played a pivotal role in analysing the problem of systemic risk in financial markets, which led in due course to the creation of the Financial Stability Forum (now the Financial Stability Board).

2.10. In 1997 Lord Eatwell was nominated by the Board of LIFFE as a Director and Independent Member of the Board of the Securities and Futures Authority (“the SFA”), a role in which he served until 2002. Whilst a member of the Board of the SFA, he served on the Enforcement Committee and the Capital Committee (deputy chairman). He was also a member of the Wind-up Committee of the SFA, dealing with a wide range of residual regulatory matters from 2001 to mid-2002.

2.11. In December 2001, Lord Eatwell joined the Regulatory Decisions Committee of the Financial Services Authority, serving until 2006.

2.12. In addition to this work as a regulator, Lord Eatwell has acted on an adviser on regulatory matters to the Bank for International Settlements, the Banking Committee of the US Senate, the European Parliament and the Hong Kong Monetary Authority.

3. RECOMMENDATION

3.1. It is recommended that the Minister approves the proposition and report and that these should be lodged au Greffe for debate on 20 April 2010.

DIRECTOR, FINANCE INDUSTRY DEVELOPMENT