Jersey Bank Depositors Compensation Board: Agreement with Chief Minister

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A decision made 27 July 2015:

MINISTERIAL DECISION REFERENCE: MD-C-2015-0100
DECISION SUMMARY TITLE: Agreement with the DCS Board
DECISION SUMMARY AUTHOR:	Director, Finance Industry Development, Financial Services Unit	IS THE DECISION SUMMARY PUBLIC OR EXEMPT?		Public
REPORT TITLE: Adoption of Agreement with DCS Board
REPORT AUTHOR OR NAME OF PERSON GIVING REPORT: (if different from Decision Summary Author)	Director, Finance Industry Development, Financial Services Unit	IS THE REPORT PUBLIC OR EXEMPT		Public
DECISION AND REASON FOR THE DECISION: The Assistant Chief Minster acting under delegated powers from the Chief Minister approved an Agreement with the Jersey Bank Depositors Compensation Board (the “Board”) in order to provide a framework for the working relationship between the Board and the Chief Minister, the management and funding of the work of the Board as well as defining their respective roles and responsibilities in relation to the activities carried out by the Board. The Agreement should assist the parties in managing the relationship to the furtherance of the public good.
RESOURCE IMPLICATIONS: There are no resource implications.
ACTION REQUIRED: The Assistant Chief Minister to sign and date the Agreement.
SIGNATURE:			POSITION: SENATOR P.F.C. OZOUF ASSISTANT CHIEF MINISTER OF JERSEY

DATE SIGNED			EFFECTIVE DATE OF THE DECISION

Jersey Bank Depositors Compensation Board: Agreement with Chief Minister

WRITTEN REPORT

Adoption of Agreement between the Board and the Chief Minister

1. Issue and Recommendation

The Jersey Bank Depositors Compensation Board (the “Board”) was established under the Banking Business (Depositors Compensation)(Jersey) Regulations 2009 (the “Regulations”) to administer the Jersey Bank Depositors Compensation Scheme (“DCS”).

An Agreement between the Board and the Chief Minister has been drafted which sets out the day to day relationship between the parties and the responsibilities of each party with regard to matters affecting the DCS. It is recommended that the Assistant Chief Minister approves this Agreement and signs it on behalf of the Chief Minister acting under delegated powers from the Chief Minister.

2. Background

Agreement between Board and Chief Minister’s Department

The attached Agreement between the Board and the Chief Minister’s Department sets out the relationship between, and responsibilities of, the parties with regard to matters affecting the Jersey Bank Depositors Compensation Scheme.

In particular, the Agreement provides for the following matters:

i) The Constitution of the Board;

ii) Assumption of functions by the Board;

iii) Corporate governance (by cross-reference to the Governance document);

iv) Bank accounts;

v) Board finance;

vi) Accounts and reporting;

vii) Responsibilities of the parties;

viii) Review of administration arrangements;

ix) Administration of the DCS.

The Agreement includes a ‘Schedule of tasks’ sets out a high level summary of the Board’s obligations and responsibilities under the Agreement and under various other sources, including the principal Banking Business (Depositors Compensation) (Jersey) Regulations 2009 and the terms and conditions of the appointments of individual Board members.

Board members have been provided with the draft Agreement and have been invited to comment on it. No comments have been received and the Board will be able to renegotiate the terms at a later date should they identify issues that they wish to amend.

3. Recommendation

It is recommended that the Assistant Chief Minister approves the Agreement between the Board and the Chief Minister and signs it on behalf of the Chief Minister acting under delegated powers from the Chief Minister.

Director, Finance Industry Development, Financial Services Unit

2015.07.24