THE Jersey Financial Services Commission has refused to acknowledge the findings of a damning JEP investigation that exposed the regulator’s heavy-handed enforcement tactics, lack of accountability and transparency, and toxic relationship with the Island’s finance industry.
Nearly two weeks since the JEP published serious allegations after a months-long investigation, JFSC chair Jane Platt – who has been with the regulator less than six months – said that the “characterisation of our organisation is not one that we recognise”.
In a letter to the JEP which is being run in full on page seven of today’s paper, Ms Platt said that while she “empathise[d]” with the individuals who outlined to the JEP how their lives and careers had been ruined by the JFSC, it had not been able to substantiate their claims and added that the regulator acted “proportionately”.
Among testimony from Islanders about the JFSC’s enforcement division – which is largely recruited from the police force – was an allegation that an employee screamed at one finance professional during an interrogation and had to be physically restrained by a colleague.
“We tread a careful line to uphold Jersey’s obligations to legal and international standards while guiding individuals and firms through our processes [which] can feel rigorous to the firms and individuals involved,” Ms Platt said.
During the JEP’s investigation, Islanders spoke of their powerlessness to counter allegations made by JFSC enforcers without an expensive and lengthy appeal in the Royal Court.
The result, sources said, is that finance professionals are terrified of any encounter with the regulator. Indeed, all but one of those who came forward during the investigation – and the many that have shared similar stories since – insisted on remaining anonymous.
Commenting on the lack of a formal third-party appeals process to decisions made by the JFSC, allowing it – critics say – to act as “judge, jury and executioner” – Ms Platt said: “We have a formal complaint process and details of how to complain are clearly set out on our website.”
The JFSC chair’s response comes in marked contrast to that of External Relations Minister Ian Gorst – the minister responsible for the finance industry – who told the JEP on Saturday that he “recognise[d] the disquiet and concern which some of the individuals had reported and spoken to you about.”
Deputy Gorst added: “I don’t accept bullying in any way, shape or form, and some of the stories that you reported on gave the impression that those individuals felt that they had been bullied, and that’s not appropriate anywhere in any arm of government.”
As a direct result of the JEP’s investigation, Deputy Gorst said that the issue of a third-party appeals process would be added to the scope of the Strategic Review of Jersey’s Regulatory Environment, launched on the same day that Moneyval’s assessment of the Island’s finance industry was published on 24 July and due to be completed in the second quarter of 2025.
He also said that the government would consider the JFSC being added to the list of organisations that are subject to Freedom of Information legislation, allowing the public to access information about the JFSC’s budget and work that is currently secret.
On the FoI question, Ms Platt was also non-committal: “We welcome the prospect of working with government to take forward learnings from others in considering our future mandate.
“I want the JFSC to continue to evolve as a strong, respected and dependable regulator enabling financial services to flourish in Jersey while keeping Islanders and markets safe.”
