In some respects, the most surprising aspect to this week’s reaffirmation of the island’s commitment to the financial services industry, was that it was needed at all – as was pointed out, it is a sector which contributes £3 billion to the local economy, provides 14,000 jobs, and generates 40% of tax revenues.
But clearly it was; and it became a further opportunity to reaffirm both the new commitment to working in partnership between the regulator, the government and the industry – and equally importantly – that there is now a clear focus on making the island’s principal industry more competitive, and less bureaucratic. That action is urgently needed to simplify our approach.
Essentially, that is a change in attitude, which was summarised in this week’s presentation by the External Relations Minister, Deputy Ian Gorst, as follows: “…we also need to change our mindset, and understand that the privilege has shifted. With so much change and innovation in the industry across the globe, it is no longer a privilege for financial services businesses to operate in Jersey. It is now Jersey’s privilege to serve them.”
The underlying point is obvious, but perhaps needed clearly restating: that without customers we don’t have a business. And building on that, there is a clearly a perception that the industry has increasingly fallen victim to institutionalised complacency.
That’s what happens when future business is taken for granted, and we fail to realise that in a competitive sector, it can be hard won, and customers always have a choice. Which is why Deputy Gorst uses the word “serve” to draw attention to the point about who is really in charge.
It is to be hoped that the island has both realised it needs to significantly change course in time, and the future roles of key bodies – Jersey Finance, the JFSC and the Government – are clearly demarcated, to make sure they are working together, and not duplicating, conflicting or over-lapping.
The industry will be hungry for more detail as to what is actually changing, and when, and it seems that may be forthcoming by March of next year, when the Minister has committed to publish advice and recommendations on the way forward.
Of course, he may only be in post for another few months after that point, so will be unable to extend that commitment to any form of personal assurance he will be able to oversee their implementation.
Whoever is in that role after the June elections will need to embed the new ‘customer-first’ approach.
