The States of Jersey has today published two consultation papers proposing to regulate consumer lending and pensions business within a financial services regulatory framework.
The financial services industry in Jersey is well-regulated with high standards of consumer protection. However, lending and pension services are currently not regulated in their own right.
The States of Jersey proposes to expand protection by bringing pensions business and the provision of lending fully into the scope of regulation.
Assistant Minister for External Relations, Connétable Richard Buchanan, said: “These consultation papers are an important step towards protecting islanders in two of the most important financial services that we rely on- borrowing and pensions. 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.”
Introducing minimum standards for those who carry out business associated with lending would help prevent mistreatment and further improve standards in the industry. Bringing pensions business into regulation would enhance protection and assurance for consumers.
Firms who provide services associated with lending to consumers and pensions are often regulated because of other activities that they carry out. Consumers borrow for many reasons, from a short term loan to cover bills through to a mortgage to buy a house. Lending is vital to allow consumers to access goods and services, and in turn is integral to the Jersey economy.
There is a risk that without legal minimum standards and oversight, consumers can be exploited. Ultimately this could lead to financial hardship for people in Jersey.
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 of Jersey welcomes feedback from those who have an interest in the provision of consumer lending and pensions business within Jersey.
Islanders can submit their views by following the link to the consultation page HERE.
The consultations close on Thursday, 31 January 2018.
States of Jersey Press Release.