Finance firms warned against risky business
Thursday 14th February 2013, 3:00PM GMT.
SOME Jersey finance firms should not be courting ‘obviously high risk’ private client business from countries like Russia because they do not have the infrastructure in place to manage it, according to a senior regulator.
David Oliver, acting director of trust company business at the Jersey Financial Services Commission, said parts of the industry were ‘not at a level’ where their risk management/mitigation systems were sufficiently robust to deal with a huge influx of high risk business from overseas.
In some cases, he said, the commission had found that these high risk clients were being charged ‘inflated fees’ but firms were not implementing the systems and controls needed to mitigate the risk.
He also warned that such an approach could not only put the reputation of the business at risk, but also threaten the excellent reputation the Island had worked hard for many years to secure.