Jersey The International Finance Centre www.jerseyfinance.je
Inside... 1 Why Jersey? Jersey s combination of a central register of the Ultimate Beneficial Ownership (UBO) with a high level of vetting/evaluation not found elsewhere and regulation of Trust and Company Service Providers (TCSPs) of a standard found in few other jurisdictions, has been widely recognised by international organisations and individual jurisdictions as placing Jersey in a leading position in meeting the standard of beneficial ownership transparency. Council of Europe MONEYVAL Report 2016 2 Jersey the Essentials 3 From Jersey to the World 5 Jersey s Reputation and Regulation 7 Jersey for Banking 8 Jersey for Capital Markets 9 Jersey for Funds 10 Jersey for Private Wealth 11 A Wealth of Expertise 13 Relocating to Jersey 14 Jersey: The Key Facts 15 About Jersey Finance 16 Useful Contacts
P1 Jersey the International Finance Centre Jersey the International Finance Centre P2 Why Jersey, the Jersey? Jersey is one of the world s leading International Finance Centres (IFCs). Reliability, political and economic stability, and a sophisticated and comprehensive infrastructure of laws have kept Jersey at the forefront of global finance for over 50 years. Essentials Expertise Reputable Central Choice Jersey has one of the largest number of finance industry professionals of any IFC, giving it a vast pool of expertise India USA GMT Greater China It adheres to, and is often an early adopter of, global standards set by the UK, EU, US and the OECD It has a central time zone, making it easy to do business around the globe In over five decades, Jersey has developed a breadth and depth of competitive products and services Connected Substance The industry s primary focus is in the key sectors of banking, fund services, wealth management and capital markets, including the specialist sectors of Islamic Finance and Philanthropy. This comprehensive range of products and services, combined with a highly-skilled expert workforce and award-winning credentials, gives an unparalleled welcome to global investors. The jurisdiction has been able to commit to the highest global standards of financial regulation, which has enhanced its reputation as a well-regulated financial centre of substance, a position that has been acknowledged by independent assessments from some of the world s leading bodies, including the Organisation for Economic Co-operation and Development (OECD) and the International Monetary Fund (IMF). Jersey s institutional, legislative and regulatory framework has recently received a glowing report from the Council of Europe s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL). This independent report concluded that Jersey was in the top tier of jurisdictions assessed under their criteria, whilst also concluding that Jersey is a well-established international financial centre with mature and sophisticated regulation. Further recognition was received in a recent announcement relating to the extension of the funds passport to twelve non-eu countries under the Alternative Investment Fund Managers Directive (AIFMD). The European Securities and Markets Authority (ESMA) confirmed that Jersey was one of only five non-eu jurisdictions to have no significant obstacles at all in being able to apply the passport. These endorsements, combined with the jurisdiction s strength as an IFC, keeps Jersey at the cutting edge of developments in the finance sector. Geoff Cook CEO, Jersey Finance A modern business environment with over 13,000 professionals supported by a politically stable government JERSEY Jersey has strong links and is in close proximity to the City of London and the EU, giving businesses and individuals easy access to both markets
P3 Jersey the International Finance Centre Jersey the International Finance Centre P4 From Jersey to the World International partnership networks and offices Jersey Finance, the organisation that represents the jurisdiction s finance industry, has offices in Dubai, Mumbai, New Delhi, Hong Kong, representation in London and a CBBC Launchpad in Shanghai. Enduring international appeal Jersey has continued to make considerable strides in enhancing international engagement and in strengthening jurisdictional awareness in a broad range of sectors and markets worldwide. Jersey Finance s Global Business Development team has focused on deepening relationships in key target markets in the Gulf Cooperation Council (GCC), the Far East, Africa and the UK, as well as in mainland Europe and North America. This has been achieved with great success, as investors look for access to Western and emerging markets through well-established and robustly regulated jurisdictions like Jersey. Jersey Finance works closely with the government, regulator and industry to review and assess existing potential markets and the impact of international regulation. It also delivers award-winning research which helps differentiate Jersey from its competitors and helps to influence perception. It also delivers a suite of events in key markets to promote the jurisdiction as the IFC of chioice. International agreements Jersey is an award-winning international finance centre, working effectively to make it attractive for businesses and individuals to use its services, wherever they are in the world. Jersey continues to make connections and expand its global reach, signing Tax Information Exchange Agreements with 38 states and 13 Double Taxation Agreements with other countries. The Jersey Financial Services Commission (JFSC) has bilateral and multilateral Memorandums of Understanding with regulators in over 90 countries.
P5 Jersey the International Finance Centre Jersey the International Finance Centre P6 Jersey s Reputation and Regulation Jersey has been acknowledged by independent assessments from some of the world s leading bodies including the OECD and the IMF. MONEYVAL Of the 49 assessment areas, Jersey was rated compliant or largely compliant in 48, placing it in the top tier of jurisdictions assessed under these criteria UK In 2016 the UK Chancellor stated that Jersey has taken a lead on global transparency as a cooperative jurisdiction, including through your early commitment to the Common Reporting Standard OECD The OECD praised Jersey s responsive and cooperative approach in its 2011 and 2014 reviews The highest regulatory standards Introduced proceeds of crime legislation in 1999, which made evading tax in other jurisdictions illegal Fully aligned with the standards required by the EU s 3rd Anti-Money Laundering Directive Early adopter of the OECD s Common Reporting Standard, the global standard in the automatic exchange of information Signed up to the United States Foreign Account Tax Compliance Act model Live central register of the beneficial ownership of companies for more than two decades and regulates those who form and administer companies, trusts, partnerships and foundations Signed up to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters Reinforced existing arrangements for providing beneficial ownership information to law enforcement and tax authorities by signing an exchange of notes with the UK government Jersey International Accolades International Financial Centre of the Year Citywealth s International Financial Centre Awards 2015 and 2016 1 ST Finance Centre of the Year 2016 Investment Excellence Awards Global Investor/ISF Magazine Best Overall Marketing Campaign Citywealth Brand Management and Reputation Awards 2016 International Finance Centre of the Year European Wealthbriefing and Asia Wealthbriefing Awards 2016 Best Fund Administration Centre Investment Week s Fund Service Awards 2015
P7 Jersey the International Finance Centre Jersey the International Finance Centre P8 Jersey for Banking Jersey for Capital Markets Jersey has been attracting deposits and investments from across the world for over 50 years. It has 32 banking licenses, including over a third of the top 25 banks in the world by Tier 1 capital. Jersey s banking sector therefore offers a compelling proposition for both institutions and private clients. Banking services Jersey is home to global banking organisations from the UK, Europe, North America, South Africa, Asia and the Middle East. Many are listed in the top 20 by assets globally and can deliver expertise in wealth management and financial planning. The jurisdiction offers multi-currency banking, mortgages, investment solutions and more, helping both to create and preserve wealth. At the same time it has become a leading finance centre in the provision of corporate banking services for multinational organisations, financial institutions and companies with cross-border interests. 2% 3% 9% Others Institutions choose Jersey because it offers a centre of excellence for companies seeking to list on worldwide markets, with one of the greatest number of FTSE 100 companies registered outside the UK being registered in Jersey. It remains a reputable and reliable location for incorporating companies and adapts effectively to the needs of all stakeholders. Bespoke products and services Jersey s professionals can create sophisticated lending packages, structured finance vehicles and other bespoke products to support international capital markets activity and institutional funding. Jersey s banks can support this by providing global custody, treasury and money market services. Since its inception in 1992, Jersey company law has been continually updated to ensure it remains modern and flexible to meet the demands of investors. The Channel Islands Securities Exchange (CISE) The CISE provides a listing facility and a market for companies to raise capital from international investors based on a bespoke trading platform. It offers competitive pricing and a responsive approach. As at December 2015, there were over 2,000 listings with market capitalisation of 357 billion. 126.5 billion in deposits 16 % Middle East Far East 11% Europe (Non-EU) North America 4% Other EU Members 55% Jersey and the UK Banking Deposits by Residence of Depositors 200 billion Total market capitalisation of Jersey listed companies No.1 in non-uk companies on the FTSE 100 As at June 2016
P9 Jersey the International Finance Centre Jersey the International Finance Centre P10 Jersey for Funds Jersey for Private Wealth Jersey has developed a respected funds sector that offers a broad range of fund regimes, from regulated options through to the more sophisticated and institutional end of the market. The Island has become a specialist centre for alternative investments and is a leading jurisdiction for fund management and domiciliation. Hedge, real estate and private equity funds now account for around 70% of Jersey s overall funds business. The funds industry in Jersey continues to perform strongly with US$334 billion of regulated funds under administration at the end of 2015 and a further increase in the number of regulated collective funds to 1,320. AIFMD Jersey was the first third country to offer a fully functional opt-in regime under the EU s Alternative Investment Fund Management Directive (AIFMD). Jersey managers can establish different Jersey funds to access the EU through national private placement regimes. Expertise Jersey s experienced funds lawyers can advise on legal structures that will best suit investment strategies, as well as how to achieve the necessary regulatory approvals. They also work closely with their counterparts in all of the world s major centres, from London to China, India, and the GCC, so whatever the financial and investment objectives, Jersey can offer the appropriate structured products and specialist vehicles. The Island has significant expertise in delivering private wealth management, trusts, foundations, and estate and succession planning. It has a broad range of service providers, from large banks and independently owned companies to smaller, niche providers. Trusts Jersey is one of the world s leading jurisdictions for trusts. It is one of the few IFCs to regulate trust and corporate services providers and its comprehensive trust law was first introduced over 30 years ago. Families can establish various types of trust in Jersey, such as interest in possession trusts, accumulation and maintenance trusts, discretionary trusts, revocable trusts and charitable and non-charitable purposes trusts. Commercial trusts are often established to hold special purpose vehicles that are used in financial or other commercial structures, such as holding assets off balance sheet, employee incentive schemes and asset securitisation. 70% of Jersey s funds business u Private equity u Venture capital u Real estate u Infrastructure u Hedge +25% Net Asset Value of funds under administration in Jersey since 2009 1,198 members of the Society of Trust and Estate Practitioners 191 regulated trust company service providers STEP Jersey August 2016 JFSC April 2016
P11 Jersey the International Finance Centre Jersey the International Finance Centre P12 A Wealth of Expertise Family offices Philanthropy Jersey s finance professionals are able to provide a full range of family office services, whether that is managing investments, concierge and travel needs, or providing professional support to the family, assisting with governance, financial reporting, project management, and trustee and corporate services. Family office solutions in Jersey are available either through an established professional services provider, or may be set up as a bespoke organisation on the Island. With global philanthropy on the rise, Jersey has witnessed the changes taking place in this landscape and for decades has helped individuals and businesses achieve their philanthropic goals. Jersey is an ideal jurisdiction for the formation and administration of philanthropic structures. It has extensive experience in providing the trusts, foundations expertise and management vital for structuring of philanthropic activity with robust yet flexible structures that help to maximise the benefits. Foundations Islamic finance Having proved to be a structure of real appeal to the private client community since its introduction in 2009, the Jersey Foundation continues to play a key role in Jersey s overall wealth management offering. Jersey offers Islamic investors a flexible legal system, measured regulatory regime and tax neutral environment that positions Jersey as a leading provider of Islamic Financial Services. The Jersey Foundation s unique structure for wealth management is appealing for its duration, capacity and structure. It offers greater regulatory oversight than you would typically find in similar vehicles elsewhere, while its flexibility means that a foundation can be created for charitable or non-charitable purposes, or for a mixture of both. 320 Jersey foundations 400 billion established formed since the launch of the Jersey Foundation in 2009 by private individuals JFSC August 2016 Capital Economics Limited 2016 US$2billion donated by Warren Buffett each year to the Bill & Melinda Gates Foundation (since 2006) 1,831 donations of US$1million+ in 2014 Coutts Million Dollar Donors Report 2015
P13 Jersey the International Finance Centre Jersey the International Finance Centre P14 Relocating to Jersey Reasons why companies choose to move to Jersey: Low tax structures - Jersey tax rates are among the lowest in Europe, with a maximum personal tax rate of 20%. Low stamp duty on property, no capital gains or inheritance tax, and corporate tax at 0% (10% for certain financial services companies only) Jersey has a highly respected international reputation, a well-regulated business infrastructure and a stable economy It offers direct air links to London Gatwick and London City, as well as fast connections to Zurich, Geneva and Paris, with sea links to the UK and mainland Europe It is outside the EU but within the European timezone Jersey offers an unparalleled quality of life with beautiful beaches, fine cuisine and an excellent education system It is an international centre of excellence with globally-renowned accountants, bankers, lawyers and venture capitalists There are no visa requirements for EU/EEA nationals Excellent access to world-renowned professional service providers and a progressive attitude to the establishment of corporate offices For further information on relocation visit www.locatejersey.com Jersey has a reputation for providing businesses with a strong, proactive and supportive welcome to the Island and we have found this to be wholly accurate in our dealings; both when initially setting up our operation and during our subsequent growth and acquisition activities. Sheila Dean Group Managing Director, Equiom Jersey The Key Facts Over 13,000 highly skilled and experienced finance professionals 4,680 banking industry employees 2,183 listings on the Channel Islands Securities Exchange As at March 2016 The philosophy of Systematica is one of innovation, excellence in research and a commitment to fostering strong partnerships with investors. As regulation continues to shift and markets evolve, and with a growing focus on governance, substance and reputation, Jersey was a natural choice for our expansion with its well-established fund servicing platform and role as a major centre for fund management. Paul Rouse Chief Financial Officer, Systematica 1.3 trillion custodian of wealth Capital Economics Limited 2016 191 regulated trust and company service providers
P15 Jersey the International Finance Centre Jersey the International Finance Centre P16 About Jersey Finance Useful Contacts Jersey Finance s main aim is to promote and represent Jersey, the international finance centre, with offices in Dubai, Mumbai, New Delhi, Hong Kong, representation in London and a CBBC Launchpad in Shanghai. To learn more about Jersey as an IFC, go to: www.jerseyfinance.je www.youtube.com/jerseyfinance www.twitter.com/jerseyfinance www.linkedin.com/company/jersey-finance Or contact the head office at: Jersey Finance Limited, 4th Floor, Sir Walter Raleigh House 48-50 The Esplanade, Jersey JE2 3QB Channel Islands T: +44 (0) 1534 836000 E: jersey@jerseyfinance.je You can find details of Jersey Finance s international offices at www.jerseyfinance.je/contact Jersey Finance Members Directory www.jerseyfinance.je/member-directory The Government of Jersey: www.gov.je Jersey Financial Services Commission: www.jerseyfsc.org Locate Jersey: www.locatejersey.com Law Society of Jersey: www.jerseylawsociety.je Jersey Association of Trust Companies: www.jatco.org Jersey Bankers Association: www.jerseybankersassociation.com Jersey Funds Association: www.jerseyfunds.org Jersey Society of Chartered and Certified Accountants: www.jscca.org Jersey Chamber of Commerce: www.jerseychamber.com Chartered Institute of Marketing: www.cim.co.uk Channel Islands Securities Exchange www.thecise.com Jersey International Business School www.jerseyibs.com Jersey International Insurance Association www.jerseyiia.org JERSEY LONDON DUBAI MUMBAI HONG KONG SHANGHAI
www.jerseyfinance.je