Jersey Financial Services Commission: Appointment of Commissioner

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A decision made 15 June 2012:

Decision Reference: MD-E-2012-0060

Decision Summary Title :

Appointment of Commissioner of the Jersey Financial Services Commission

Date of Decision Summary:

May 2012

Decision Summary Author:

Deputy 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:

May 2012

Written Report Author:

Deputy Director, Finance Industry Development

Written Report :

Public or Exempt?

Public

Subject:

The appointment of Stephan Wilcke as a Commissioner of the Jersey Financial Services Commission (“the JFSC”).

Decision(s):

The Minister agreed the nomination of Stephan Wilcke for appointment as a Commissioner of the JFSC by the States under Art. 3(2)(a) of the Financial Services Commission (Jersey) Law 1998.

The Minister approved the proposition and report and that these should be lodged with the States Greffe for debate by the States at the earliest opportunity.

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 proposition and report to be lodged au Greffe for debate by the States at the earliest opportunity.

Signature:

Position:

Minister for Economic Development

Date Signed:

Date of Decision (If different from Date Signed):

Jersey Financial Services Commission: Commissioner: Appointment of

THE MINISTER FOR ECONOMIC DEVELOPMENT (“the Minister”)

Appointment of Commissioner of the Jersey Financial Services Commission

1 ISSUE AND RECOMMENDATION

1.1 A vacancy for a Commissioner of the Jersey Financial Services Commission (the “Commission”) is to occur on 16 June 2012 upon the retirement of Sir Nigel Wicks. Sir Nigel Wicks is one of three Commissioners of appropriate standing appointed from outside of the Island. His retirement is consequent on his reaching the statutory age limit for Commissioners of 72 years.

1.2 Article 3 of the Financial Services Commission (Jersey) Law 1998 (the “Law”) stipulates that the States shall appoint Commissioners from persons nominated by the Minister for Economic Development (the “Minister”).

1.3 The Board of Commissioners has recommended to the Minister that Mr Stephan Wilcke 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 by the States at the earliest opportunity.

2 BACKGROUND

2.1 The 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 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, on this occasion, to seek the appointment of an individual of recognised high repute from outside the Island with extensive experience within the UK or European finance industry, whose authority had been gained as a successful practitioner, regulator or legislator.

2.3 The search for a Commissioner with these qualities has followed an open and transparent process, which included public advertising of the vacancy in the Financial Times Executive Appointments (UK & Europe), Handelsbatt (Germany), Le Monde (France) and the Jersey Evening Post. The recruitment process followed procedures agreed with, and overseen by, the Jersey Appointments Commission (the “JAC”) who, on 7 May 2012, confirmed in writing that the recruitment process has met its requirements for openness of competition, impartiality, equality and selection based on merit.

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

Part One – Personal Experience

Experience gained at a senior level within the UK or European finance industry, as a successful practitioner, regulator or legislator.
An extensive knowledge of the workings of the UK and the European Union, including its political and commercial environment.
A sound knowledge of the international environments in which the Commission operates.
Preferably educated to degree level or above.

Part Two – Personal Style and Behaviour

A high level of analytical ability, combined with an ability to take a wide view on regulatory matters as they affect Jersey.
A high standard of integrity, impartiality, transparency and objectivity in the performance of his/her functions, and an ability to work as a member of a team.
An understanding of the need for, and commitment to, international standards as they apply to the finance industry.
An appreciation of the importance of innovation, flexibility and enterprise in the local finance industry.
Recognised as having stature in the international community.
1. Consideration of the applicants for the position was delegated by the Commission to an interview panel, comprising the Clive Jones (Commission Chairman), Sir Nigel Wicks (Commissioner), Advocate Debbie Prosser (Commissioner) and Mr Alan Merry (Chairman of the JAC),. The panel considered thirteen applications against the agreed criteria and shortlisted five of the candidates for interview.
2. The interview panel unanimously agreed to put forward the name of Mr Stephan Wilcke (“Mr Wilcke”) to the Nomination Committee of the Board of Commissioners as the preferred candidate to fill the vacancy.
3. Mr Wilcke joined OneSavings Bank plc in February 2011 as a non-executive director and was appointed chairman in February 2012. OneSavings Bank plc is a hybrid mutual, majority-owned by the former members of the Kent Reliance Building Society, and in which J C Flowers & Co LLC is a significant minority investor. Previously (from 2009 to 2011) Mr Wilcke was Chief Executive Officer of the Asset Protection Agency, an executive arm of Her Majesty’s Treasury that administers the UK Government’s Asset Protection Scheme for toxic and other high risk credit assets. Prior to this he advised various European central banks on difficult situations created by the credit crisis. From 2000 to 2007 he was a partner and Head of European Financial Services at private equity firm, Apax Partners Worldwide LLP. Mr Wilcke started his career at management consultancy Oliver Wyman & Co., where he progressed to partner level.
4. The Nomination Committee endorsed the interview panel’s recommendation to the Board of Commissioners that Mr Wilcke should be nominated to the States for appointment as a Commissioner.
5. The Board of Commissioners considered the Nomination Committee’s recommendation and, on 3 May 2012, decided that Mr Wilcke was a suitable candidate to fill the vacancy that will be created by the retirement of Sir Nigel Wicks.
6. The Board therefore recommends Mr Wilcke to the Minister and requests, should the Minister concur with its recommendation, that Mr Wilcke be nominated to the States pursuant to Article 3(2)(a) of the Law for appointment as a Commissioner.

3 FINANCIAL AND MANPOWER IMPLICATIONS

3.1 There are no financial or manpower implications arising as a result of this decision.

4 RECOMMENDATION

4.1 It is recommended that the Minister approve the proposition and report and confirm that these should be lodged au Greffe for debate by the States at the earliest opportunity.