The idea was included – albeit in a brief mention – in a 64-page independent report prepared for the Guernsey Financial Services Commission last year by Ernst & Young. In a section addressing the make-up of the GRSC’s commission and the backgrounds of its members, the report notes that “there would…be merit in sharing a Commissioner with Jersey”.
Sources on both islands say that a number of factors make right now the best time in years for the two Channel Islands to take the first step in the direction of a shared commissioner. These include a fresh vacancy on the GFSC, coupled with newly-elected governments in both St Helier and St Peter Port. There are also cost pressures on many financial services businesses, which are having to take a hard look at whether they need to maintain separate offices on both Jersey and Guernsey. For example, as reported, HSBC Private Bank announced last month it planned to close its Jersey office, amalgamating its Channel Island operations into its existing Guernsey operation.
The vacancy on the GFSC was created by the stepping down of its chairman, Peter Harwood, who stood for office for the first time ever in April and after being elected, subsequently was named chief minister.
There are also a number of recent precedents: In addition to the joint Brussels office Jersey and Guernsey opened last year, for example, work towards the creation of a shared data protection commissioner for both islands is said to be well advanced. The islands already share an electricity grid, a telecoms link with the UK, a director of Civil Aviation, and have their tourism marketing handled by a single website, visitchannelislands.com. The two islands’ competition regulators have also committed to working together as “CICRA”.
Thus far, little has been said – officially – about the possibility of a shared financial services commissioner being appointed. However, a number of important high-level meetings took place in May between various government and business organisations from both islands, with greater pan-island cooperation on “areas of mutual interest” among the only items on the agenda.
Around the same time, the Jersey and Guernsey Chambers of Commerce also met jointly for the first time.
The driving force behind the Chamber of Commerce powwow was Julian Winser, president of the Guernsey chapter, and a longtime advocate of the cause for more inter-island cooperation.
Winser, whose day job is chief executive of Schroders (CI) Ltd, is adamant that “the need for inter-island competitive arbitrage is dying”.
He adds: “the rest of the world views the Channel Islands as one. The two principal islands should recognise this, and harness the benefits of working together.”
Dominic Wheatley, chairman of the Guernsey International Business Association, is another proponent of the idea for more cooperation generally, and a shared regulatory commissioner in particular.
"While Guernsey and Jersey have always viewed each other as competitive jurisdictions, there is no denying that many financial organisations have a presence on both islands," Wheatley, who is managing director of Willis Management (Guernsey), says.
"The outside world also views us as one, and is not interested in the differences — only we are.
"At times we tend to focus more on our differences rather than our combined advantages. The current inherent arbitrage to this stance is very costly, so there are cost advantages and an element of strength to both islands doing things together.
"No one wishes to remove all differences, but just recognise the 70 to 80% that we have in common, which would ultimately give us a greater neutrality in regulation."
