THE Jersey Financial Services Commission has broken its silence after an investigation by the Jersey Evening Post raised multiple concerns about a lack of accountability and transparency at the regulator, and damning allegations about the conduct of its enforcement division.
The matters raised in this newspaper’s investigation are being taken “extremely seriously”, according to the JFSC, and have also prompted a new initiative by the JEP highlighing government inaction.
The JEP series focused on a number of complaints from those within the finance industry, including the use of public statements to name and shame those accused of financial misconduct or professional malfeasance. It included interviews with individuals whose lives and careers were ruined by the regulator’s enforcement arm.
In the days since the revelations were aired by this newspaper, the JEP has been inundated with correspondence from finance industry professionals who have echoed the criticisms made by those who spoke out, most on a strict condition of anonymity due to fear of reprisals.
In a statement to the JEP on Monday, the JFSC said: “In recent days the Jersey Evening Post (JEP) has published allegations regarding the JFSC’s conduct.
“We take the matters raised extremely seriously and want to reassure our stakeholder community that we will carefully review them using our core values of professionalism, integrity and respect.
“We ask for patience while we work through this and commit to providing a more comprehensive response. We want to take this opportunity to reassure all stakeholders that we will continue to be open and transparent in our actions and future communication.”
The JEP has reached out to External Relations Minister Ian Gorst, who has responsibility for the finance industry, about the findings of the investigation but is yet to receive a response.
Inaction-o-meter
The JEP has launched its “Government Inaction-o-meter” to highlight the many areas in which ministers and civil servants are sitting on their hands and not acting in the public interest. The first issue highlighted is the egregious failure to act on a States decision of 25 November 2014 to extend the freedom of information law to companies wholly-owned by the States, or in which the States has a controlling interest.
The proposition was brought by Deputy Carolyn Labey. In it, she said: “I believe many Members were shocked to learn that the Freedom of Information Law does not extend to States-owned bodies. Indeed, when Members have passed propositions such as the transfer of housing stock into entities such as Andium Homes, it was with some comfort that there was a belief that access to information could be achieved when deemed necessary.”
She added: “I am also asking the Chief Minister to come forward with recommendations to the feasibility of including other States-funded bodies, such as the Jersey Appointments Commission, the Jersey Financial Services Commission, and many others that could be included.”
Almost ten years on and nothing of any note has happened. Those bodies, including the JFSC, remain outside of the scope of FoI legislation, despite wielding huge power and relying on significant amounts of public money.
Deputy Labey’s proposition also asked the government to “report back to the States with recommendations within six months”. In the following years, Deputy Labey asked for progress reports, and was told by then Senator and Chief Minister Ian Gorst that achieving what had been agreed was more complicated than expected. It got kicked into the long grass.
JEP editor Andy Sibcy said: “Inaction is a feature of so many areas of government, and the many things it is supposed to deliver. That inaction is fuelling the erosion of faith and trust in government, and undermining the hope that Jersey has a prosperous and bright future.
“The JEP and Bailiwick Express, now under the umbrella of All Island Media, hold a unique position to be able to demand action and hold the feet of the government to the fire until empty words are translated into action. Today, therefore, we are launching the Government Inaction-o-meter to highlight inaction. On the back of a multi-day series about our investigation into the Jersey Financial Services Commission, we start with the extension of FoI, but will soon add other areas of failure. It will be a daily, constant reminder that nothing is being done. If any of those responsible for inaction want that to change, they know what to do.”
He added: “The JEP’s investigation into the JFSC was based on the testimonies of many people who have painted a consistent picture of the feared regulator as closed, unaccountable, siloed, impervious to criticism, heavy-handed and damaging to the Island’s economy. As well as extending the freedom of information law to cover the JFSC as agreed by the States Assembly, we want to see an appeals process introduced and a new more collaborative relationship with the industry as critical friend and not sworn enemy. The clock is ticking.
“The Assembly agreed to extend the freedom of information law to the JFSC on 25 November 2014. Nothing has happened. That is now almost ten years ago – or 3,605 days of inaction.”
