Firms in the spotlight: Jersey Finance

EXPERTISE

Jersey Finance is the dedicated, reliable voice of the finance industry in Jersey. The organisation, while representing experts from across the IFC including from law, banking, funds, private wealth, and capital markets, also has its own in-house technical experts who represent the finance industry’s needs on legislation, regulation and innovation to enhance Jersey’s offering and who work closely with the government and regulator to ensure that the best interests of the finance industry are effectively represented.

We deliver an extensive overseas programme of visits and events in our key target markets. Through this structured activity, Jersey Finance builds strategic, meaningful relationships with investors’ needs in mind. We are a central contact for journalists and anyone connected with the finance industry, both locally and internationally, as a source of comment, industry news and information, providing positive and transparent news, views and insights on Jersey Finance’s role and the added value that Jersey as an IFC can bring to economies around the world.

Transparency and tax remain a significant consideration for Jersey Finance – Jersey has 38 tax information exchange agreements and 13 double taxation agreements.

As one of the best regulated IFCs, Jersey has been acknowledged by independent assessments from some of the world’s leading bodies, including the World Bank and IMF, as well as scoring top marks from the OECD on tax transparency. Jersey was also subject to a mutual evaluation by MONEYVAL in 2016 and found to be ‘compliant’ or ‘largely compliant’, with 48 out of 49 of the FATF recommendations, the highest score among all states assessed.

AREAS OF EXPERTISE IN JERSEY:

Funds

Jersey has developed a well-respected and forward-thinking funds sector that offers regimes from retail options, through to the more sophisticated and institutional end of the market. Jersey is recognised as a specialist centre for alternative asset classes, including hedge, real estate and private equity funds – accounting for around 86% of its overall funds business.

The Island has a net asset value of £320 billion in regulated funds under administration. Currently, figures for the increasingly popular Jersey Private Fund are not included, meaning the net asset value figure is much higher. The Jersey Private Fund product was launched in April 2017 and at the last count on 31 December 2018, there were 205 formed.

Private Wealth

Through Jersey’s sophisticated legal framework, it offers leading private client services, vital to the health of the finance industry worldwide. These range from simple trusts and underlying company structures for UK families, through to high value and complex structures working with trusts, companies, limited partnerships and foundations for international families.

The establishment of ‘virtual’ offices for ultra-high net worth families are also available, as are structures for corporates looking to support and reward staff.

Jersey has £400 billion in trusts, established by private individuals, and 375 Jersey Foundations formed (as of December 2018) since the structure’s launch in 2009, coupled with an innovative foundations law.

As at December 2018, Jersey also holds 1,282 members of the worldwide membership for The Society of Trust and Estate Practitioners (STEP) – one of the largest branches globally.

Banking

Jersey’s forward-thinking, flexible and robust regulatory system attracts high-quality banking business to the Island. While supportive of the traditional banking institutions, many of whom base their Channel Islands and Isle of Man offices in Jersey, the Island is also welcoming of more niche and digital banking providers.

Jersey holds £122.9 billion in banking deposits and has 26 banking licences (including a third of the top 25 banks).

The Island has received an AA-credit rating from Standard & Poors, largely due to its banking model which is diversified and does not rely on wholesale funding.

Jersey provides an extensive range of services, including multi-currency banking, offshore mortgages, investment solutions and more, and holds an average Tier 1 Capital ratio that’s 50% higher than Basel III requirements.

Capital Markets

Jersey has a strong track record as the jurisdiction of choice for corporate entities seeking to list. The Island has the greatest number of FTSE 100 and AIM companies registered outside the UK and, together, the Jersey listed companies on global exchanges hold a market capitalisation of £221 billion (as at December 2018).

There are 86 companies listed on global stock exchanges (as at June 2018, JFSC) and The International Stock Exchange (TISE) has achieved 2,857 securities on its official list (as at 31 December 2018, TISE).

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