THE bank accounts of Islanders should be given the same protection as those of UK residents, according to a St Helier Deputy.
But a review into a compensation scheme has already begun, according to the minister in charge. With elections for all States Members just a few weeks away, Deputy Paul Le Claire has lodged a proposal to set up a financial compensation scheme to protect Islanders. The proposals follow the collapse of Lehman Brothers and the buyouts of Merrill Lynch and HBOS.
But Economic Development Minister Philip Ozouf says that a review has begun, and that there will be an answer within weeks. He says that he plans to speak to the finance industry and to regulators to see whether the cost of a scheme would be justified.
Last week the head of the Jersey Bankers Association and the Jersey Financial Services Commission’s head of banking said that the Island’s regulatory rules and policy of only allowing the ‘top 500’ banks were an effective safeguard. But the Deputy says that the proposal should work like the UK scheme to give Islanders some peace of mind as the global financial crisis deepens.
Article posted on 22nd September, 2008 - 2.55pm
2 Article Comments
As we have been assured that all the Jersey banks are 100% sound and run by the most frightfully OK chaps the cost of the scheme would be low as none of the banks would ever go belly up.
However some of the bankers might not feel so confident after HBOS last week?
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It is an absolute scandal that there is no compensation scheme in place in the islands. It cuts no ice to say that only banks in the top 500 are allowed to trade here when we have seen that the biggest and best in UK and USA can run onto the rocks. It is said the States are looking into the problem – better late than never, we shall see what transpires and when.
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