MercoPress. South Atlantic News Agency

UK launches OT offshore financial centres review

Financial supervision and transparency targeted in the review by Michael Foot

The British Government announced that Michael Foot, currently Chairman of the UK office of Promontory Financial Group, will lead the independent review of British offshore financial centres, mostly in Overseas Territories, anticipated at Pre-Budget Report 2008.

The review is extensive only to those Crown Dependencies and Overseas Territories with significant financial sectors such as Jersey, Guernsey, Isle of Man, Bermuda, Cayman Islands, Gibraltar, Turks and Caicos Islands, British Virgin Islands, Anguilla. Out of scope are: Falkland Islands, Montserrat, South Georgia and the South Sandwich Islands, British Antarctic Territory, British Indian Ocean Territory, Sovereign Base Areas of Akrotiri and Dhekelia, Pitcairn Islands, Saint Helena. 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. The UK Government however said that it has been clear 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. Welcoming the launch of the review, the UK Financial Services Secretary, Paul Myners, said that Mr Foot 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", he said. The Minister for the Crown Dependencies, Lord Bach, said the 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." According to Minister for the Overseas Territories, Gillian Merrion, he has had positive discussions with the Overseas Territories on financial services regulation recently, and hopes that the review may be helpful to those overseas territories, with significant financial services industries, to prepare for the challenges of the future. Mr. Foot set out his credentials saying that after working as a financial regulator in the UK and overseas he has 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." The Review will report to the Chancellor of the Exchequer Alistair Darling, copied to the Lord Chancellor, Foreign Secretary, and the Governments of the UK's Crown Dependencies and Overseas Territories; and will produce interim conclusions for the UK Budget of 2009, with fuller conclusions later in the year. Mr. Foot is currently the Chairman of the UK office of Promontory Financial Group. Following an extensive career in the Bank of England and FSA, Mr. Foot joined Promontory from the Central Bank of The Bahamas, where he was Inspector of Banks & Trust Companies from 2004 to 2007. Before that he was a Managing Director of the Financial Services Authority. Mr. Foot was one of the architects of the FSA and during his 29-year tenure at the Bank of England (1969 to 1998), he held a number of posts, including head of the European and Foreign Exchange Divisions, Head of European Division and Head of Banking Supervision Division.