Finance firms warned against risky business

SOME Jersey finance firms should not be courting ‘obviously high risk’ private client business from countries like Russia because they do not have the infrastructure in place to manage it, according to a senior regulator.

JFSC director general John Harris and acting director of trust company business David Oliver at the Institute of Law debate at the Town Hall
JFSC director general John Harris and acting director of trust company business David Oliver at the Institute of Law debate at the Town Hall

SOME Jersey finance firms should not be courting ‘obviously high risk’ private client business from countries like Russia because they do not have the infrastructure in place to manage it, according to a senior regulator.

David Oliver, acting director of trust company business at the Jersey Financial Services Commission, said parts of the industry were ‘not at a level’ where their risk management/mitigation systems were sufficiently robust to deal with a huge influx of high risk business from overseas.

In some cases, he said, the commission had found that these high risk clients were being charged ‘inflated fees’ but firms were not implementing the systems and controls needed to mitigate the risk.

He also warned that such an approach could not only put the reputation of the business at risk, but also threaten the excellent reputation the Island had worked hard for many years to secure.

Comments for: "Finance firms warned against risky business "

Silaz Tomasch

You could start nearer home and the basics and say Jersey Trust firms should not be courting business from those eggregious tax avoidance schemes for UK residents that get us on the front page of The Times every so often. Doesn't exactly improve things for us with the UK government.

Chales Darwin Dubrochich

I certainly agree with your comment. Just because some tax avoidance structure carries an opinion that it is effective does not make it sensible to persue. It is realy rather stupid not to think through the consequences of adverse publicity and on reading some of the recent so called charitable structures used by UK residents. There appears to be no commercial logic at one or more steps in the chain other than a contrived tax avoidance.

Fiduciaries should not just sell a new scheme but talk though with clients the worst case scenarios and the logic applied by tax authorities when questioning them.

Think of your clients interests and keep them out of the media and trouble.

James Wiley

What excellent reputation are they talking about? Who holds Jersey in high regard?

Honesty is the best policy, not self-delusion.