From Geoff Cook, chief executive, Jersey Finance.
THERE has been much coverage of the recent signing of the Tax Information Exchange agreement with the United Kingdom, and what this means for the Island, including dire predictions of business loss and the impression left that this move is not supported by all sectors of the finance industry.

In fact we have through our market strategy group consulted extensively throughout the industry over many months, and there is full and widespread support for the approach taken by the government. We are committed as a finance industry to transparency, high standards of corporate governance and international co-operation. Tax information exchange agreements provide for carefully controlled disclosure in appropriate circumstances, while affording significant protection in respect of the fundamental right to privacy that all citizens can legitimately expect.

While there has historically been some concern expressed over the impact of such an agreement with the UK, the recent international focus on jurisdictions with banking secrecy laws, and the announcements by both Singapore and Hong Kong with respect to the adoption of modern standards of information exchange means that arbitrage between centres is much less likely, particularly as it seems highly probable that the OECD and G20 nations will propose a basket of defensive measures in respect of non co-operative jurisdictions.

Not only is Jersey unlikely to suffer from this move, we will likely see even greater business flows as a result of the enhancing of our international reputation and commitment to sound business principles, fair dealing, high standards of regulation and transparency.
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