Terms of reference for the independent review of British offshore financial centres

Purpose

The Chancellor has asked Michael Foot to conduct an independent review of the long-term opportunities and challenges facing the British Crown Dependencies and Overseas Territories as financial centres, which have been brought into focus by recent financial and economic events.

Scope

The review will work first with Crown Dependencies then Overseas Territories with significant financial centres to identify opportunities and current and future risks (and mitigation strategies) to their long-term financial services sector, including:

financial supervision and transparency;
taxation, in relation to financial stability, sustainability and future competitiveness;
financial crisis management and resolution arrangements.
international cooperation;

The review will take account of Crown Dependencies’ and Overseas Territories’ respective constitutional relationships with the UK. Changes to the UK’s constitutional relationship with Crown Dependencies and Overseas Territories are out of scope for the review.

Timing

The Review will report to the Chancellor of the Exchequer, copied to the Lord Chancellor, Foreign Secretary, and the Governments of the UK’s Crown Dependencies and Overseas Territories; and will produce interim conclusions for Budget 2009, with fuller conclusions later in the year.