I note that the Jersey 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 in Jersey for sending them to me.
First, and to continue yesterday’s them, I note that Geoff Cook, the CEO of Jersey Finance had some fascinating things to say about the status of the organisation he manages. For example. It’s reported he said:
It’s not appropriate for Jersey Finance to consider political issues as it is a commercial promotional body and not a political body.
Well that’s an interesting idea. Because in their presentation to that meeting Jersey Finance said that they had in 2010:
Developed 18 laws and regulations
Note, they didn't say they lobbied on this. They said this was their achievement. And they're right to do so. Because they do write this stuff. Note, they say they did so using 5,700 hours of finance industry time. So let's not beat around the bush - these laws were written by the finance industry. They weren't something they lobbied for. They were laws Jersey Finance wrote and which the States of Jersey passed.
In the circumstances the claim that Jersey Finance is not involved in politics is blatantly untrue. They're the major driver of the poloitical process in Jersey. Their denial of this just shows how little they respect the process in which they are engaged, which is fundamentally political - and yet they deny it.
Why is that?
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Richard,
The way it works in Jersey is this.
There is an annual law drafting conference where the time for law drafting for each year is divided between departments of the States. Effectively, States departments say what legislation they want to draft in the next year, how low they estimate it will take, andwhat is the priority. In drawing up his list the economic development minister will ask trade bodies – Jersey Finance, Jersey Tourism, the Chamber of Commerce etc – what legislation is on their wish list. The Minister then lists the laws that eveyone has requested in what he regards as an order of priority.
At the law drafting conference law drafting time is divided between departments. It is an absurd business where a decision is made on whether(for example) a Dog Breeding Law is more important than a new Weights and Measure Law. If a law comes in “above the line” then it has law drafting time reserved for it.
Following that conference work on progressing the law commences. The only person that the law draftsman communicates with is the civil servant at the instruting department. Not Jersey Finance. Any consultation will be carried out by the civil servant: not Jersey Finance.
Jersey Finance will collate the results of the consultation and will constitute a steering group to advise the civil servant (and sometimes, though rarely, the law draftsman) on the requirements of the law. They do not write the law. Only the law draftsman writes the law.
JFL doesprovide a lot of input to the law drafting process. Each law draftsman has a different approach but in general they will only deal directly with the civil servant.
So to cut to the quick. JFL say what legislation they want. The Minister either agrees or disagrees. The council of ministers as a whole then has a power of veto to the legislation in principle. The law drafting process is run by civil servants though JFL provide almost all of the feedback. Any law is finally subject to the approval of the States. JFL is “political” in the sense that it has views about the sort of lawsit was passed (and hence the sort of environment it wants Jersey to be). But it does not make decisions, it makes suggestions and recommendations. But so does any industry body.
@ Richard Murphy
The Jersey Government, Jersey Finance and the tease known as the Jersey Financial Services Commission connive collectively to devise “regulations” to benefit privileged interest.
Notably banks, trustees and “investment companies” …
In reality it is immaterial what “regulations” are seen (by the outside world) to be in place because they will be ignored to suit this egocentric triumvirate.
[…] just referred to a report in the Jersey Evening Post, not available on line, that covers the meeting Jersey Finance held last Friday when they presented a […]
@mad foetus
I am well aware you are an insider to this process – so yes, what you say has some credibility
And also has to be treated with some cynicism
a) 18 pieces of law for Finance? Come on….
b) How is that scrutinised? Be realistic – almost none of your elected legislators understand this stuff – with respect to them
c) Candidly, I just don’t believe that JF don\t supply the complete spec – because they say they do – and they thought they could without someone like me picking it up – so I think it’s true
Richard,
I’m out of the loop: I suspect much of the 18 pieces are fairly minor. Prospectus orders, recognized fund stuff, nothing that material. It seems high to me as well but I doubt they’ll all come through, they never do.
On the scrutiny side you are totally correct. But the quality of States members (including the ones you speak to) is fairly poor. The minister for economic development was an estate agent 5 years ago. There was one chap who did look into this stuff but he was found with snuff movies and had to resign (I’m not making this up).
JFL acts as the filter for what industry wants, the idea is that they decide the industry’s priorities, the regulator decides his priorities, then the minister decides what he thinks. If the politicians decide they want a vibrant finance industry and don’t have the expertise to set the direction themselves, it is hard to progress much without a body like JFL.