Review to examine challenges arising from current economic climate
The Government has announced that Michael Foot, currently chairman of the UK office of Promontory Financial Group, will lead the independent review of British offshore financial centres announced at Pre-Budget Report 2008.
The review will look at the immediate and long-term challenges facing British offshore financial centres in the current economic climate, including: financial supervision and transparency; taxation, in relation to financial stability, sustainability and future competitiveness; financial crisis management and resolution arrangements; and international cooperation.
Territories covered include: Jersey, Guernsey, Isle of Man, Bermuda and Gibraltar.
The Government said that the variety of existing constitutional arrangements in place across these territories will continue to be respected, including their independence in fiscal matters and the setting of their own rates of taxation.
Financial Services Secretary, Paul Myners, said: "I welcome the appointment of Michael Foot who brings significant experience in financial regulation to this task. Offshore financial centres must play a responsible role in the global financial system. This review will take a serious and constructive look at the challenges these centres face in the current economic climate, and how they can best respond to these. “
The Minister for the Crown Dependencies, Lord Bach, said: "This Review is an opportunity for the Crown Dependencies to demonstrate their strong track record in the regulation of their financial services industries. The Review will allow the Crown Dependencies to participate in an open debate about how they can best be equipped to withstand the current difficult economic climate without calling into question their constitutional arrangements. In this regard, I am pleased to see that the Review specifically excludes constitutional change from its scope."
The Minister for the Overseas Territories, Gillian Merron MP, said: “I am impressed by the positive discussions I have had with the Overseas Territories on financial services regulation recently, and hope that the review may be helpful to those overseas territories, with significant financial services industries, to prepare for the challenges of the future.”
Michael Foot said: “After working as a financial regulator in the UK and overseas, I have direct experience of the achievements of the Crown Dependencies and Overseas Territories. I am looking forward to working with them to see how best the important contribution of their financial sectors can be underpinned and strengthened for the future in these challenging economic times.”
