Jersey Welcomes UK Coalition Govt

by Robert Lee, Tax-News.com, London

18 May 2010

Jersey Finance, the Jersey financial services industry's promotional body, has welcomed the formation of a coalition government in the UK between the Conservatives and the Liberal Democrats as a move that will provide greater political certainty in matters relating to the island’s international financial center.

Commenting, Geoff Cook, CEO of Jersey Finance, said:

“The news of the Conservative and Liberal Democrat cooperation is very positive, both for the financial markets and the stability of the UK as a whole. In their joint statements, both parties have stressed the need for respect, fairness and inclusion, all of which are sentiments that Jersey’s finance industry supports and indeed embodies. If this style of approach is also applied to UK international relations it can only be a good thing for Jersey.”

“As an industry we are watching with interest to see what elements of each party manifesto will now be adopted. The Conservative approach has traditionally been pro-financial services, and pro-business but there are some policies being considered which could also impact the finance industry, for example the potential levy on banks, the change in role of the Bank of England with respect to regulation, as well as the possible stances towards bankers remuneration.”

“We are also encouraged to learn that Ken Clarke is to become Justice Secretary and Lord Chancellor, with responsibility for governmental engagement with the Crown Dependencies. This is a very positive step as Clarke has visited Jersey on several occasions and understands its importance to the City of London, which will hopefully result in a closer and enhanced relationship that will benefit all."

“With regards to the Liberal Democrats, (Business Secretary) Vince Cable has on occasion been openly critical of offshore centres such as Jersey. Our government has previously extended an invitation to him to visit Jersey to provide an accurate picture of the high quality of Jersey’s regulation, as well as Jersey’s benefit to the UK as a source of liquidity, both of which were highlighted in the recent International Monetary Fund and Crown Dependency reviews. I will be encouraging our government to once again extend an invitation to Cable in the hope that we can explain the valuable role that Jersey plays in global financial services.”

Cook concluded:

“Over the last 18 months all countries have faced significant challenges; the Jersey finance industry is committed to working with the UK and other international parties in building and securing the recovery which will benefit all - I strongly believe that Jersey can be an important part of the solution."

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