Oct 15 - GSD Seeks Answers On Barrass PwC Appointment
The matter of the appointment of Ms. Samantha Barrass as Independent Non-Executive director to the Public Interest Body of PwC UK continues to cause the GSD concern. Shadow Justice and Financial Services Spokesman, Daniel Feetham says he has been in correspondence with the Minister for Financial Services for some time on this issue. On 4 October 2018 he wrote to Mr Feetham stating that while the Government did not object to her appointment, this is a matter for the Board of the GFSC.
A statement from the party continued: “The reality is that this is a matter of considerable public interest on which the public and finance centre operators in particular, need clarity so that we can all be satisfied that no actual or perceived conflicts of interest arise. These are some of the questions which the GSD believe should be addressed.
“The first, is how much did PwC UK earn (directly or indirectly) from decisions or appointments made by the GFSC in the three years prior to the appointment of Ms Barrass to their board. That includes not only direct appointments made by the GFSC, which is publicly available, but the amounts earned by PwC UK, for example, from any appointments as Inspectors during that time. In relation to the latter, it is the licensed entity that has paid PwC UK but as a consequence of a decision or an appointment made by the GFSC. No one is asking anyone to disclose names or particular cases, just a global figure. The GSD believes that is a relevant question when anyone comes to consider whether there is an actual or perceived conflict in the appointment and, indeed, whether in the light of those figures, absent conflict, it is even appropriate for the most senior regulator within the jurisdiction to accept that appointment.
“Secondly in the PWC UK Report published a few weeks ago (see: https://www.pwc.co.uk/annualreport/assets/2018/pdf/uk-transparency-report-18.pdf) it is said under the section “Independent Non-Executives” that “our INEs are paid an annual fee of £100,000 for their services” (page 79). The Chronicle article of 20 August 2018 reports that “Mrs Barrass will forgo one twenty fourth of her annual [GFSC] salary or the equivalent of 15 days earnings” and that the fee she will receive will “more or less make up the deficit”. The FSC 2017 Accounts published recently state that “The current CEO SB received total remuneration of £263,309” (page 49): http://www.gfsc.gi/uploads/annual-reports/files/annualreport2018.pdf. People are entitled to know whether Ms Barrass is earning £100,000 from PwC UK as the PWC UK Report suggests other non-executive directors appear to get paid. If she is and she is forgoing the equivalent of 15 days earning at the FSC (according to the Chronicle), this is not “more or less” making up the difference in deficit in the reduction of her GFSC salary. On the contrary she would be much better off. It may well be that she is earning (or her compensation package) is far less than her other PwC UK INE counterparts. The actual position, however, should be disclosed given the information published by PwC.
“Thirdly the PwC UK report states that Ms Barrass was appointed on 1 July 2018 (page 89). It is important that the public understands whether the Finance Centre Council and other relevant stakeholders were consulted by Ms Barrass and/or the Board of the GFSC before her appointment or were they were simply notified of it.”
Daniel Feetham said: “It is unprecedented for the top regulator in Gibraltar to accept an appointment of this kind. It is, therefore, important that any concerns surrounding her appointment are dealt with openly and transparently so that the public can be assured that decisions taken behind closed doors have been properly considered and assessed. That is why it is important these questions are answered.”
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