As reported briefly last week, Economic Development Minister Alan Maclean has commissioned consultants Oxera to look again at the cost-benefit analysis of establishing funding to compensate investors who have been badly advised.
The minister says that if new laws are required, the department will aim to bring those to the States within the next two years at the latest. In the past, the Island’s government has been firmly opposed to such a scheme because of the costs.
The recent change of heart follows a case involving 28 Jersey couples and individuals who were badly advised by a local investment firm and who, in many cases, lost their life savings.
The firm Alternate Insurance Services Ltd was taken to court by the Jersey Financial Services Commission in 2006 and the judge awarded the investors compensation of over £1.5 million in total.
