Crown Dependencies PDF Download

The Isle of Man, Jersey and Guernsey are self-governing dependencies of the UK. These "Crown Dependencies" have their own directly-elected legislatures together with independent legal, administrative and fiscal systems. UK legislation only extends to them with the consent of the relevant legislatures. The UK Government represents the Crown Dependencies in international and defence matters, a role for which it receives annual payment from each dependency. The Ministry of Justice is the UK Government department responsible for managing the UK's constitutional relationship with the Crown Dependencies and the department's performance in doing so falls within the remit of this Committee. In 2008 problems in the Icelandic banking sector (also affecting subsidiaries of Icelandic banks in, inter alia, the UK, Isle of Man and Guernsey) and the UK authorities' response gave rise to a number of issues which, in the opinion of the Committee, merited examination. Many UK-based depositors in banks in the Crown Dependencies fear that they may have lost most or all of their savings and want to know what responsibilities the UK Government has in these matters. The Committee took evidence from Lord Bach, Parliamentary Under-Secretary of State, Ministry of Justice and received written evidence. Prior to this, in November 2008, the Committee had the benefit of an informal meeting with a delegation from Tynwald, the Isle of Man legislature, led by its President, Hon Noel Cringle MLC. The Committee believes that some questions over the relationship between the UK and the Crown Dependencies remain to be answered and that further clarity on the way in which the dependencies' interests are protected by the UK Government is required. The situation is further complicated by the relationships between the parent banks in Iceland and their subsidiaries in the UK, the Isle of Man and Guernsey as well as between the financial regulators in each jurisdiction. The Committee was not sure that the arrangements within the Government were adequate to deal with all aspects of the recent crisis. The Committee intend to return to the wider issues, and the performance of the Ministry of Justice in these matters, in the New Year. There is also the independent review of the immediate and long-term challenges facing British offshore financial centres in the current economic climate commissioned by HM Treasury.