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Express columnist Advocate Olaf Blakeley regularly takes on cases involving one of the island's regulators - here, he gives his own views on rebuilding trust with the companies they regulate, and why he thinks that has become a problem.
"The first point I would make is that in my experience, regulators appear to operate on the basis that unless they are pursuing someone for an infraction of some legislation, or code of practice, they are not doing their job.
"It is as though they mark their success by the number of people prosecuted/sanctioned for breaches. This is not the right way. I am not saying that is all they do, but it appears top heavy in that direction. I accept that I could be of this view because I routinely defend people being investigated, and so I am exposed to it maybe more than others - but, speaking to people in certain industries, it seems many share the same view.
"I also worry that more emphasis is put on prosecution than on prevention. It seems the news reports are full about individuals and entities who have been punished after the event and there are less reports of disasters being avoided. Why is that? I suppose much of it is because it is harder to detect something that is about to happen, than it is to find a culprit after the event. But that comes down to intelligence does it not? When I say that, I don’t mean actual cognitive intelligence, I mean intelligence ‘in the field.’ Do we have enough intelligence to assist in preventing problems in regulated industries?
Pictured: According to Advocate Blakeley, regulators shouldn't mark their success by the number of people prosecuted/sanctioned for breaches.
"I am simply unable to answer that question, but I am confident that the level of intelligence is directly proportional to the amount of funding a regulator has at its disposal. It takes masses of human resources to keep a watchful eye on the various businesses in Jersey which are subject to regulation, and perhaps the time has come to inject more money into supporting the regulators. Money spent on detecting offences before they occur is money saved on bringing prosecutions or
sanctions. For instance, I have two, six-week, trials yet to come this year which both relate to financial regulation, and I am acutely aware of just how massively expensive such trials are, and the burden it places on the taxpayer.
"For those of you who read my articles regularly you will be aware that I do not have positive views about the Island’s finance regulator. I find it depressing that so many people I speak to in the finance industry have negative things to say about the regulator. There appears to be a real lack of trust (from both sides) and nothing will change in this relationship until such time as trust is rebuilt. As the saying goes, “it takes years to build trust but seconds to destroy it.” I see the road to rebuilding trust as one in which the finance regulator provides more advice to the industry, helps it, assists it in compliance. Perhaps that will come.
Pictured: General Data Protection Regulation (GDPR) is going to make financial services regulation look a dwarf, says Advocate Olaf Blakeley.
"But other regulation is upon us which is going to make financial services regulation look a dwarf. Legislation concerning the protection of data (GDPR) is going to make businesses groan and strain and policing it is going to be an unenviable task. I am worried. I think it is going to take a lot of adjustment to meet the criteria and standards of this new legislation and it is essential that those regulating businesses build up trust and confidence at the start. A too-heavy handed approach is not going to work. Thankfully, I hear that seminars and presentations have taken place and the general feedback I have received from those attending is good. Watch this space.
"Finally, in last month’s column I was commenting upon unnecessary regulation generally and I made a comment about airport security and remarked that confiscating ‘sharp objects’ from one’s carry-on baggage seemed pointless when, after clearing security, there were pots of metal knives and forks at the café available to all and sundry. Last weekend I passed through the area and was pleasantly surprised to see this cutlery has been replaced with plastic utensils. Brilliant, well done.
"The metal spoons are still there, should we be worried?"
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