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Press Release - 12 September 2001

Jersey Financial Services Commission Local Impact of US Disaster

The terrorist attack in the United States yesterday is, without doubt, an event of the most appalling magnitude. The fate of the victims is uppermost in all our minds.

The disruption during the aftermath will also have some effect on global financial markets as shares and commodity prices alter and any delays that may occur in the settlements and clearing systems steady down.

Many Stock Exchanges will have temporarily suspended dealings or continued to trade through other locations and many institutions will be ensuring their contingency plans are ready to trigger if necessary. These are measures of robustness rather than weakness. The financial markets and the institutions that operate within them are sophisticated and powerful, that is both why they were a target and why they will recover very quickly.

From the point of view of this Island, the Commission is in touch with other regulatory bodies, such as the Financial Services Authority and monitoring the position of the relevant Central Banks, particularly the US Federal Reserve. The Commission is also in touch with its licenceholders reminding them of their obligation under the relevant regulatory Laws to inform the Commission immediately should any entity encounter difficulties.

"The world financial systems have substantial resilience and this provides a great degree of comfort to Jersey's financial institutions. Jersey does not have a primary or secondary market, our entities simply trade with others. Nonetheless, we continue to closely monitor exposures and liquidity as you would expect." Said Richard Pratt, Director General of the Financial Services Commission.

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