The publication of the report is likely to open doors to new business for the Island’s premier industry.
But recommendations for more staff and resources, particularly to fight financial crime, will increase the cost of regulation and policing.The report was compiled by a team from the International Monetary Fund (IMF), who assessed the Island’s regulator and industry at the end of last year.
The same team also assessed financial services regulation in Guernsey and the Isle of Man.The IMF conclude that the Jersey Financial Services Commission is to be commended for the ‘excellent progress’ it has made in upgrading the regulatory and supervisory system for banking, insurance and anti-money laundering and combatting the financing of terrorism.
Of 102 international standards, the team found Jersey to be compliant with all but three, which are being or have been addressed: the stance on market risks faced by banks; codes of practice for collective investment funds; and a contingency plan for the failure of a market intermediary.
The IMF particularly commend the Island’s introduction of trust company business regulation, which is ahead of many of its competitors’.Policy and Resources president Senator Frank Walker said that Jersey measured up well against the Guernsey and the Isle of Man reports, which were also released today.’There would be no advantage to Jersey if either of the other Crown dependencies was demonstrably falling behind – in the eyes of the rest of the world we are grouped together,’ Senator Walker said.
‘These reports strengthen each island’s position.
All three have achieved very similar results and are at the top end of regulatory best practice.’However, a number of recommendations have been proposed to strengthen the legal framework.
