Channel Islands Financial Ombudsman: Memorandum of Understanding

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made on 14 December 2018

Decision Reference: MD-E-2018-0049
Decision Summary Title :	Channel Islands Financial Ombudsman – Memorandum of Understanding		Date of Decision Summary:	7th December 2018
Decision Summary Author:	Director		Decision Summary: Public or Exempt?	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:
Written Report Title :	Channel Islands Financial Ombudsman – Memorandum of Understanding between the Committee for Economic Development, Guernsey and the Minister for Economic Development, Tourism, Sport and Culture		Date of Written Report:	7th December 2018
Written Report Author:	Director		Written Report : Public or Exempt?	Public
Subject: Channel Islands Financial Ombudsman – Memorandum of Understanding between the Committee for Economic Development, Guernsey and the Minister for Economic Development, Tourism, Sport and Culture
Decision(s): The Minister approved and signed the Memorandum of Understanding with the Committee for Economic Development.
Reason(s) for Decision: The Memorandum of Understanding sets out the arrangement between the Parties under Article 6(1) of the Financial Services Ombudsman (Jersey) Law 2014 and section 6(1) of the Guernsey Law.
Resource Implications: There are no finance or manpower implications arising from this decision.
Action required: The Director is requested to forward the Memorandum of Understanding to the Committee for Economic Development in Guernsey for signing by the President.
Signature: Senator L J Farnham		Position: Minister for Economic Development, Tourism, Sport and Culture
Date Signed:		Date of Decision (If different from Date Signed)

Channel Islands Financial Ombudsman: Memorandum of Understanding

Memorandum of Understanding

Between

The Committee for Economic Development (Guernsey)

and

The Minister for Economic Development, Tourism, Sport and Culture (Jersey)

This Memorandum of Understanding (the “Memorandum”) is made on 9th November 2018 and replaces the previous version (signed on 10th November 2016) between the Commerce & Employment Department, the predecessor of the Committee for Economic Development and the Minister for Economic Development, Tourism, Sport and Culture (together, the “Parties” and each a “Party”).

The Financial Services Ombudsman (Jersey) Law 2014 (the “Jersey Law”) established the Office of the Financial Services Ombudsman in Jersey (the “Jersey OFSO”) and the Financial Services Ombudsman (Bailiwick of Guernsey) Law 2014 (the “Guernsey Law”, and together with the “Jersey Law”, the “Laws”) established the Office of the Financial Services Ombudsman in Guernsey (the “Guernsey OFSO”, and together with the Jersey OFSO, the “OFSOs”). This Memorandum sets out the arrangement between the Parties under Article 6 (1) of the Jersey Law and section 6(1) of the Guernsey Law (the “Arrangement”).

The purpose of the Arrangement is to allow the OFSOs to share resources in order to promote cost-efficiencies and consistency in approach for complainants and financial services providers under the Laws.

The Parties agree, subject to such consultation with the OFSOs as required under the Laws or any other third party as may be necessary, that the OFSOs will, in carrying out their operations, utilise the same Chairman and board members, and in the manner they see fit share staff, technological and service infrastructure, resources and a single office location.

To facilitate the Arrangement, the OFSOs will put in place the necessary systems to record and monitor the expenditure of resources in their respective jurisdiction, including the recording of the number of complaints and enquiries originating from that jurisdiction.

This Memorandum further explains how the Parties agree to proceed in relation to their respective duties under the Laws.

Appointment of board members and Chairman: the Parties agree to use joint recruitment processes in the appointment of Chairmen and board members, subject to the appointment process specified in the Laws. The Parties agree to select and appoint the same persons as Chairman and board members of the OFSOs on concurrent contracts from each jurisdiction. In particular, any such contract should -
1. be on the same terms and conditions and shall be expressed to expire on the same date; and
2. require that if the holder resigns from one OFSO they must also resign at the same time from the other OFSO.

Each Party further agrees to consult the other if considering any termination of appointment of a Chairman or board member.

As far as possible and subject to consultation with other parties as required by the Laws or as otherwise considered necessary, the Parties agree to consult fully with each other and use their best endeavours to maintain the scope of the OFSOs in each jurisdiction to be as similar as possible, including (but not limited to) the categories of eligible complaint, the maximum award and the issuance of directions and guidance.

The Parties agree to accept annual reporting on a joint basis on condition that such joint reports contain separate sections on each jurisdiction and are in accordance with any applicable requirements relating to reporting as specified in the Laws.

The OFSOs shall prepare separate accounts with respect to operations in their respective jurisdictions in accordance with procedures specified in the Laws. The financial year for the OFSOs shall end on 31st December.

The Parties agree, subject to the necessary consultation with other parties and legislative approval, that until the end of the 2019 financial year the total amount required by the OFSOs to be raised in levies should be equally raised by each OFSO and that all the costs of the OFSOs should be shared equally by the OFSOs. Thereafter the OFSOs shall agree an operating budget as is considered appropriate based on supporting evidence and raise levies in accordance with a funding structure adopted by the OFSOs following consultation with other parties.

Consultation: Where it is relevant, possible and practical to do so, the Parties agree to discuss with and include the other -
1. in consideration of any recommendation from an OFSO or when consulting an OFSO on any matter;
2. in the issue of any public statement concerning the operation of the OFSOs, and their intended operation as a joint enterprise.

This Memorandum is to be reviewed annually or upon request by either Party, in conjunction with the accounting and reporting obligations of the OFSOs under the Laws. The Parties may add to or otherwise amend any of the provisions of this Memorandum as may be agreed by the Parties.

The Memorandum is not intended to be legally binding but is the basis upon which the Parties shall commit time and resources to the ongoing operation of the OFSOs as a joint enterprise and achieve the objectives of this Memorandum. This Memorandum will not affect the statutory duties, responsibilities or other legal rights and obligations of either Party.

Each Party agrees that it shall act in good faith in pursuit of the purposes and objectives expressed in this Memorandum.

The Parties may, subject to giving the other Party six months’ notice or earlier with mutual agreement, terminate this Memorandum on any annual review.

Confidentiality: Any information disclosed by either Party which is declared as confidential must be treated as confidential. Any information disclosed which the recipient Party should reasonably be expected to know is confidential must also be treated as confidential. All confidential material must be handled in compliance with respective data protection legislation. The Parties will take all reasonable steps to ensure compliance with the above confidentiality provisions by their employees, agents and sub-contractors.

Signed

President Charles Parkinson

for the Committee for Economic Development

Signed

Senator Lyndon Farnham

Minister for Economic Development, Tourism, Sport and Culture

2018 MOU - OFSO - Gsy and Jsy