Jersey politicians vote to stop 'vulture funds' using island courts

Jersey bank notes Senator Gorst says the new law will limit practices that could undermine debt relief efforts

Related Stories

Jersey politicians have voted to stop so-called vulture funds from using island courts to sue poor nations.

It will limit practices that Chief Minister Senator Ian Gorst says could undermine debt relief efforts.

He said it sent a clear message that Jersey was a "well-regulated, co-operative and transparent jurisdiction".

Vulture fundholders buy debts of poor nations cheaply and then sue for up to 100 times what they paid for them.

They pursue any companies which do business with their target country in courts around the world and try to force them to pay money to the fund instead of the country.

Senator Gorst said the UK was the only country in the world to have enacted a law to limit vulture funds practices so far but other rich nations were looking into it.

Members voted 41 in favour to none against with just Senator Sarah Ferguson abstaining from the vote.

Senator Gorst said: "We are following in the footsteps of the United Kingdom, it is not something we like to do as a rule but they have shown leadership.

"This will set us right at the forefront with this issue and will be aligning us with what other rich nations of the world have decided is appropriate."

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

BBC Jersey

Weather

St Helier

14 °C 11 °C

Features & Analysis

  • Prostitute in red light district in Seoul, South KoreaSex for soldiers

    How Korea helped prostitutes work near US military bases


  • LuckyDumped

    The rubbish collector left on the scrap heap as his city cleans up


  • Walmart employees and supporters block off a major intersection near the Walton Family Foundation to stage a protest calling for $15 an hour and consistent full-time work in downtown Washington October 16, 2014. Black mark

    Wal-Mart workers revolt against the annual shopping bonanza


  • Jennifer Lawrence in The Hunger Games: Mockingjay - Part 1More than 'Games'

    Fact and fiction blur in Mockingjay film.


Elsewhere on the BBC

  • UnderwaterHidden depths

    How do you explore the bottom of the ocean? BBC Future finds out

Programmes

  • All-inclusive holidaysThe Travel Show Watch

    With all-inclusive holidays seeing a resurgence are local trades missing out to big resorts?

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.