I have often argued that tax havens / secrecy jurisdictions have been subject tio regulatory capture. Wikipedia defines this as:
regulatory capture occurs when a state regulatory agency created to act in the public interest instead advances the commercial or special interests that dominate the industry or sector it is charged with regulating. Regulatory capture is a form of government failure, as it can act as an encouragement for large firms to produce negative externalities. The agencies are called Captured Agencies.
The evidence became very clear ina presentation given last Friday by Jersey Finance to the members of the States of Jersey. The title slide of their presentation was:
Note what Jersey Finance says of itself in its web site:
So there we have it: a non-profit company whose job is to promote the finance industry.
But then note what Jersey Finance said it had done in 2010:
Hang on - Jersey Finance is saying it developed 18 laws and regulations? That seems to be the case.
And it wasn't a mistake. This is what it says it wants to do in 2011:
Yes, it's working hard on developing new lines and regulation.
So there we have it - absolute proof of the fact that Jersey has been captured by finance.
And wasn't it kind of the real government of Jersey - Geoff Cook and his ex-finance industry team at Jersey Finance (almost none of them Jersey people, please note) to go along to the states and tell them what they'll be doing when it comes to law making this year? Because this is exaxtly what that meeting was about.
The people of Jersey and the politicians of Jersey please take note - the evidence that your legislature has been captured for the benefit of the finance industry is overwhelming. Now, what are you going to do about it?
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Richard, you will have to realise sooner or later that what Jersey decides to do is nothing to do with you. You have no influence or say over Island matters.
@Jamie
When Jersey stops interfering in the tax affairs of other states I’ll leave it alone
That’s the deal
Until then – you’re utterly wrong
Do you really think all that publicity last week was for a person with no influence? I didn’t ask for it. The JEP et al gave it. Their choice. They must have had a reason
Richard you can make it your business but the word on the street since your visit the other week is that your views mean nothing to the ‘Powers that be’.
But face it, you have no real influence.
@Jamie
I’m sure Mubarak is saying much the same of the demonstrators in Cairo right now
Richard,
Bear this in mind: Jersey Finance’s board is deliberately constituted such that two members are “government representatives”.
This is actually weaselling: they are civil servants (so members of the executive, rather than the legislature). So this body is effectively a quango – with the emphasis on quasi-autonomous.
I am a former British civil servant, and as such I was brought up with the understanding that the powers of executive, legislature and judiciary are separate, and have to be kept so. I understood that only tinpot banana republics or rogue states like North Korea ignore that line: evidently I was wrong…
Richard
I love much of what you say but this time I am afraid you are wrong.
Jersey Finance is not and never has been a regulator, it’s a trade body there to promote finance; it’s funded by the government of Jersey and the finance industry in Jersey.
The regulator is a totally different body – the Jersey Financial Services commision. see http://www.jerseyfsc.org
@Dawn
Yes, but that’s even worse
A trade body if writing Jersey’s law
Can’t you see how that means there is no democracy in Jersey – and that it’s law making process has been captured?
@Richard Murphy
“the evidence that your legislature has been captured for the benefit of the finance industry is overwhelming.”
And don’t forget the “window dressing” regulations, either proposed or in position but never enforced
@Dawn
The Jersey government, the Jersey Financial Services Commission (JFSC) and Jersey Finance are funded bodies that obfuscate into a blur.
The JFSC promotes finance by failing to regulate
Jersey Finance promotes finance by “managing” regulation
The Jersey Government promotes finance by denial of reality
Richard, our law making process was very publicly captured several years ago with the LLP scandal. Looks like not a lot has changed since.
Hey ho
I am not fan of jersey or it’s finance industry but…
The trade body is not “writing” the Law
What it may be doing is promoting new Laws which many other pressure groups do.
I do not accept that these two bodies blur into one.
Wish I hadn’t statred this now!! Never thought I would be supporting Jersey’s financial “arrangements”!!
@Dawn
Maybe not “writing” but certainly “influencing” with the insidious support of rich and powerful pressure groups.
By means of these “arrangements” three bodies merge into one — and Jersey bleeds.
So we are now in a position where industry bodies are not allowed to try to influence legislation that directly influences their industry? How drearily predictable. In other words free speech is fine (as long as you agree with the content). Just like your blog, in fact
@Gutbucket
Of course they can lobby
But that’s not what they say they’re doing
And not what they’re actually doing
They write this legislation
That’s fundamentally different
You entirely misrepresent the reality
[…] Evening Post has published reports of the meeting I referred to yesterday when referring to the capture of Jersey by the finance industry for the benefit of the finance industry but that these do not seem to be on line. I thank friends […]
Thanks Richard,
That has put in sharp focus a bad practice that most of the island’s residents have suspected for years. The sad part is the number of people who still think that this handing-over of democracy is acceptable, even beneficial.
The good part is that people are starting to wake up though, thanks to the efforts of the sane and the just. Keep it up!