21 April 2009
Jersey’s Chief Minister has welcomed the findings of an
interim report into British Offshore Finance Centres. In his progress report, Michael Foot explains how he intends to tackle his review of British Crown Dependencies and Overseas Territories.
He has set out the issues he wants to explore, which include: -
• how centres are managing the effects of the economic downturn
• what opportunities are likely to arise as global markets recover
• whether more should be done to strengthen regulatory co-operation and the sharing of technical expertise, particularly between local regulators and the UK’s Financial Services Authority
• the mechanisms available for responding to major economic shocks
• the implementation of new international standards of regulation and information exchange
Jersey’s Chief Minister, Senator Terry Le Sueur, has said: “This report is a very constructive explanation of how Michael Foot’s review will be conducted. It confirms there will be continued collaboration with the UK government at a time of international uncertainty, and makes it clear that the constitutional position of the financial centres is not within its scope.”
“We have always been confident that Jersey’s position as a well-regulated finance centre which meets global standards of financial regulation and information exchange would be recognised internationally. We are delighted that the OECD confirmed this in a report published after the G20 summit earlier this month, which highlights Jersey as one of the jurisdictions that have substantially implemented the internationally agreed tax standard, alongside jurisdictions like the UK, USA, France and Germany.
“We will continue to work with the international community as the OECD and other global organisations develop frameworks for strengthening governance of the world economy.”
ends
Notes to Editors:
For further information, please contact Chief Minister Senator Terry le Sueur on 07797 718798 or International Finance Director, Martin de Forest-Brown on 07700 331910
Jersey has signed Tax Information Exchange Agreements with the USA (2002); the Netherlands (2007): the seven Nordic countries (Denmark, the Faroes, Finland, Greenland, Iceland, Norway and Sweden – in 2008) Germany (2008), the UK, France and Ireland (2009).
Negotiations are well advanced with Australia, New Zealand and Italy. Discussions are underway with Spain and Canada.
Terms of reference
HM Treasury published the terms of reference for the independent review on 2nd December 2008. These are set out below:
Purpose
The Chancellor of the Exchequer has asked Michael Foot to conduct an independent review of the long-term opportunities and challenges facing the British Crown Dependencies and Overseas Territories as financial centres, which have been brought into focus by recent financial and economic events.
Scope
The review will work first with Crown Dependencies then Overseas Territories with significant financial centres to identify opportunities and current and future risks (and mitigation strategies) to their long-term financial services sector, including:
• financial supervision and transparency;
• taxation, in relation to financial stability, sustainability and future competitiveness;
• financial crisis management and resolution arrangement; and
• international co-operation.
The review will take account of Crown Dependencies’ and Overseas Territories’ respective constitutional relationships with the UK. Changes to the UK’s constitutional relationship with Crown Dependencies and Overseas Territories are out of scope for the review.
Timing
The Review will report to the Chancellor of the Exchequer, copied to the Lord Chancellor, Foreign Secretary, and the Governments of the UK’s Crown Dependencies and Overseas Territories; and will produce interim conclusions for Budget 2009; with fuller conclusions later in the year.
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