JFSC considers imposing fines for codes of practice breaches

THE imposition of ‘fines’ for breaches of codes of practice will help maintain high standards of business conduct in the finance industry, says the head of enforcement at the Jersey Financial Services Commission.

Barry Faudemer address the Compliance and Economic Crime Symposium
Barry Faudemer address the Compliance and Economic Crime Symposium

THE imposition of ‘fines’ for breaches of codes of practice will help maintain high standards of business conduct in the finance industry, says the head of enforcement at the Jersey Financial Services Commission.

Barry Faudemer told an audience of about 230 financial professionals last week that other local bodies such as the Gambling Commission and the Island’s competition regulator were able to impose financial penalties for breaches of regulations.

He was explaining proposals for the introduction of a ‘civil penalties’ regime to the audience at the eighth annual Compliance and Economic Crime Symposium at the Hotel de France.

The proposals incorporating some of the feedback received from the consultation process will be released in a feedback paper which will be published early next year. The infractions will be in three bands, covering everything from relatively minor breaches which are not remediated to the satisfaction of the commission to the more serious cases where the breach was wilful and deliberate.

Full report in Tuesday's JEP

Comments for: "JFSC considers imposing fines for codes of practice breaches"

Ripped off again

Well lets start with the big boys like HSBC.

Pip Clement

Get enough fines in and the JFSC could be self funding.

It looks like things are going the same way as farming and tourism, as the industry shrinks the burden of regulators and general jobsworths grows.

It is the Jersey way! :-(

Rentokil

Possibly good idea.. Like politicians they will truly be worthy of the taxpayers money they keep swiping and start protecting vulnerable people ( Like they should be anyway....)

Steve

If we already have high standards within the finance industry in Jersey without fines, how will the introduction of fines "maintain" them?

If they are given this power without the oversight, checks and balances that apply to the UK FSA, the JFSC will be a disciplinary power unto itself with no external avenue of appeal.

One of the reasons the UK SROs were disbanded was their propensity to impose huge fines on their members for minor transgressions with no external appeal process. Where would these proposed fines go? and what would they be used for?

James Wiley

Good bye finance industry it was nice knowing you.

C Le Verdic

What was so nice about it?

James Wiley

Well it started off OK but our imbecilic government decide to spend all the additional revenue on really important things like paying States Members rather than really saving for a rainy day.

There was a point when if we had just maintained expenditure growth from 1980 to 2005 to the same rate of growth as the UK then by 2005 we would not have needed to raise a single penny in taxation the interest on our accounts would have paid for everything. Instead we were facing a £100 million black hole which necessitated GST.

Now they are really pushing the finance industry hard to get out of Jersey as soon as possible but we are going to be left with the bureaucracy and unfunded pension liabilities and social welfare liabilities which of course we cannot afford.

Still we got to live beyond our means for a good while and there are always the children and grandchildren to pick up the tab.

I just hope the people who voted for Horsfall, Walker et al all these years will not live to suffer the fruits of their support for these 'politicians'.

Names such as these will live on in infamy for many centuries still to come (assuming the world doesn't end today).

You can't blame the finance industry because the people of Jersey believed the hype.

As long as we learn the very important lesson that no good can come from dependence on government.

Having to realise that one must be self-reliant is not an appetising prospect I realise, but that doesn't mean its not true.