Regulation considered for "two of the most important financial services"

Wednesday 21 November 2018

Minimum standards for lending and pension services to ensure customers are protected are under consideration by the States, who are seeking the views of islanders on the proposals.

While the financial services industry is already regulated to provide consumer protection, lending and pension services are currently not regulated in their own right.

The States are proposing to expand protection by bringing pensions business and the provision of lending fully into the scope of regulation. They have published two consultation papers proposing to those businesses within a financial services regulatory framework.

Connétable Richard Buchanan, Assistant Minister for External Relations, described the consultation papers as, "...an important step towards protecting islanders in two of the most important financial services that we rely on: borrowing and pensions."

Pictured: Assistant Minister Richard Buchanan said the consultation was an "important step" to offering consumers more protection. 

"I encourage all islanders with a view on this to put their opinions forward so that we can build the best possible protection in Jersey," he said.

Firms providing services associated with lending to consumers and pensions are often regulated because of other activities that they carry out, but the States are looking to introduce more specific standards. Officials said that there was a risk consumers could be exploited and suffer financial hardship without minimum legal standards and oversight.

The Assistant Minister added: “These proposals build on the strong reputation of the financial services industry in Jersey. Bringing these businesses in to regulation would recognise the efforts made by industry participants to operate to the highest standards, and would bring all market participants onto the same footing.”

The States are now asking for those who have an interest in the provision of consumer lending and pensions business within Jersey to share their views before 31 January 2019.