Open letter from the JFSC Chair to the JEP

Open letter for publication

As Chair of the Jersey Financial Services Commission, I want to address personally the recent claims made by the Jersey Evening Post which may have raised concern among Islanders. This reporting called into question our conduct and is at odds with the values we seek to uphold of professionalism, integrity and respect.

While the JEP’s characterisation of our organisation is not one that we recognise, we agree on the need to uphold the highest standards as a regulator. This is critical as we serve and protect Jersey to enable long-term prosperity through financial services which are such an important contributor to the economy.

Although confidentiality prevents me from discussing individual cases, I empathise with anyone who feels that our actions as a regulator have affected them unduly. We tread a careful line to uphold Jersey’s obligations to legal and international standards while guiding individuals and firms through our processes. These processes can feel rigorous to the firms and individuals involved, and result in outcomes which have a significant impact. We take the responsibility to act proportionately as seriously as we take the duty to protect Islanders and market integrity.

We have carefully reviewed the specific claims made by the JEP relating to the conduct of our employees and based on the evidence we have available, have not been able to substantiate them. We have a formal complaint process and details of how to complain are clearly set out on our website.

Importantly, with due process and governance in mind, when our decision-making process is used to take regulatory action, individuals or entities have the right to make representation directly to our independent Board of Commissioners before a decision is made. This process is also explained on our website to ensure we are transparent in our approach.

Our role as a regulator is an important one defined in law. Supported by an experienced independent Board of Commissioners, our people protect Islanders and Jersey’s reputation from the risk associated with dishonesty, poor conduct and malpractice within financial services. We play a critical role in the fight against financial crime, while also helping to facilitate business which safeguards Jersey’s best economic interests.

In my short time as Chair - having joined the organisation in April this year - I have been struck by the commitment, professionalism and dedication of our people who must often progress complex and sensitive matters. It matters that we are an effective, proportionate and empathetic regulator, something I feel strongly about based on my experience working in the finance industry and previously as a Non-Executive Director with the UK Financial Conduct Authority.

It is important for a regulator to earn, maintain and protect stakeholder trust and confidence. I am committed to increasing engagement and transparency with our community, building on our independent annual industry surveys, and sustained outreach. We invite anyone with concerns to engage with us directly, or through industry bodies. We welcome feedback.

We know there are things we can do better. Despite Jersey’s strong international MONEYVAL assessment, we have said that we are moving through a business transformation with performance, service and people at heart. We have work to do and are committed to this process of renewal which will include reviewing how we engage with the businesses we regulate to make sure we are getting the balance right.

We fully support the government’s upcoming strategic review of the approach to regulation of financial and professional services in Jersey. It provides an opportunity to leverage compliance with international standards as a platform for growth and represents a chance to reflect on how our regulatory approach can evolve further. This review will undoubtedly benefit both Islanders and the international community in which we and Jersey operate.

We note Minister Gorst’s commitment to consider the extension of the Freedom of Information Law to arm’s length bodies and reviewing other jurisdictions’ appeals processes in relation to enforcement. We welcome the prospect of working with government to take forward learnings from others in considering our future mandate.

I want the JFSC to continue to evolve as a strong, respected and dependable regulator enabling financial services to flourish in Jersey while keeping Islanders and markets safe.

Yours faithfully

Jane Platt CBE

Chair, Jersey Financial Services Commission