The government had announced that Michael Foot, the current chairman of the Promontory Financial Group in the UK, is to head up the review of offshore tax havens announced in the pre Budget report.

The review comes after increasing criticism of offshore havens, such as Jersey and Guernsey, and will look at transparency, regulation and taxation issues. Some observers have predicted the review could spell the end of offshore tax havens as we know them.

Paul Myners, the financial services secretary said on the appointment: ‘Offshore financial centre must play a responsible role in the global financial system. This review will take a serious and constructive look at the the challenges these centres face in the current economic climate, and how they can best respond to these.’

The tax haves included in the review are Jersey, Guernsey, Isle of Man, Bermuda, Cayman Islands, Gibraltar, Turks and Caicos Islands, British Virgin Islands, Anguilla.

The government hopes to produce a preliminary report before the Budget next year and will work to draw firm conclusions before the end of 2009.

Promontory is a consulting business advising financial services companies on regulation, risk controls, liquidity needs and, among others, conducting internal investigations.

Foot said: 'After working as a financial regulator in the UK and overseas, I have direct experience of the achievements of the Crown Dependencies and Overseas Territories. I am looking forward to working with them to see how best the important contribution of their financial sectors can be underpinned and strengthened for the future in these challenging economic times.'