In the States of Jersey official report dated Tuesday, 5th November 2013 (5.18) it is reported that Deputy G.P. Southern asked
- Does the Chief Minister have any information on when the J.F.S.C. (Jersey Financial Services Commission) may product its report on the activities of HSBC Middle East, as promised earlier in the year?
Senator I.J. Gorst responded
- No, I do not, but I can take that issue up. Sir, perhaps I could ask a point of order …
In this matter you may remember Deputy G.P. Southern Lodged au Greffe on 29th January 2013 a PROPOSITION as follows
- THE STATES are asked to decide whether they are of opinion − to request the Minister for Economic Development, in conjunction with the Chief Minister, to investigate the issues relating to Jersey contained in the U.S. Senate Report “U.S. Vulnerabilities to Money Laundering, Drugs, and Terrorist Financing: HSBC Case History” and to report his findings to the States by 31st July 2013.
Against this proposition the Chief Minister Presented his responses to the States on 5th March 2013 as follows
- The proposition presented by Deputy Southern is therefore premature, and the requirement in the proposition that the findings of a review be reported to the States by the 31st July 2013 is unrealistic in the circumstances.
- For all the reasons stated in this comment the Proposition is not supported.
I was wondering whether you ever got any further and if the JFSC (or anyone else) presented any further update (whether final or preliminary) following the following undertakings from the 5th March 2013 statement that included the following:-
An independent reviewer has been appointed to carry out the investigation of HBME. Once the report is received by the JFSC, consideration will then be given to the need to undertake any further action in relation to HBME.
If the Commission is minded to exercise any regulatory powers, for example issuing a public statement, it is important that such a decision is made in accordance with the Commission’s published “Decision Making Process” and not hampered by an appointment as envisaged by Deputy Southern.
Only when this process is completed would it be appropriate to consider appointing a suitably qualified reviewer to assess the role of the JFSC.
This is because the results of the HBME investigation when known – and the JFSC has indicated that hopefully this will be by July of this year – will provide an important indicator of whether and what earlier regulatory action could and should have been taken.
States Members will note from the report supporting the proposition that the conduct complained of in the U.S. Senate Report, which breached no international sanctions nor any applicable Jersey laws, mostly relates to the period between 2001 and 2007, so any retrospective focus on the actions of the regulator during this period will not suffer from awaiting the outcome of the current investigation.
The JFSC has given an assurance that when the report on the investigation and due process of the HBME case has been completed, they will co-operate in accordance with their statutory duties with any independent qualified reviewer appointed to investigate their role in the matters of concern if such an exercise is thought to be justified.
http://www.statesassembly.gov.je/AssemblyPropositions/2013/P.010-2013Com.pdf
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