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Jersey Links with France - French Chamber of Commerce in Great Britain Patrons Jersey Visit – 14th May 2010
Monday 7th June 2010
Firstly by way of introduction, Jersey Finance is the voice of the finance industry in Jersey. We represent approaching 200 firms and our membership covers the vast majority of Jersey Finance workers. I am delighted to say that we are quite unusual in our constitution in that we receive significant support and backing from the States of Jersey, as well as from the Finance Industry and we are in effect a Private/Public partnership between Industry and Government.
Our role is threefold; firstly to promote and represent the Jersey finance industry offering here and around the world. Secondly to work on product and service development to ensure our offering continues to be strong, relevant and attractive. And thirdly to ensure that we proactively engage with media, influencers, and policy makers around the world, to ensure that the value and integrity of what we do is understood
The Jersey finance industry as we know it today began in the 1960’s principally offering banking services to British expatriates. It has developed over the last 50 years into a global international finance centre. It offers a full range of corporate and wealth management services, to an international client base in over 200 countries.
We are one of the largest centres of our kind with 13,000 people working in finance, which is 1 in 4 of the working population. This significant breadth and depth of world class expertise enables us to offer an extensive, and highly competitive range of financial services.
Our flagship sectors are banking; including corporate, expatriate and private banking services, private wealth management, including trusts, and funds; principally ‘alternates’ such as real estate, hedge, and private equity
We manage or administer around £350bn of deposits and funds providing valuable liquidity and investment into major proximate markets such as the UK, France and Germany. It was estimated in a UK Treasury review in 2009, that Jersey was providing as much liquidity to the UK banking system as the Bank of England had provided in intervention support, during the financial crisis.
In terms of economic impact locally this all translates into over 50% of Jerseys GDP equivalent , and with the indirect contribution from spend on support services, contributes more than two thirds of the Jersey economy.
The finance industry in Jersey has strong links with France.
Our own membership includes such names as BNP Paribas and Mazars, both major sponsors of this event, for which many thanks, and others such as Societe Generale Hambros, and Union Bancaire Privee.
These organisations like many others have found that Jersey is a compelling and attractive centre from which to offer international services to the rest of the world. In addition many French financial services groups are significant users of Jersey services, notable examples being AXA Group and Lyxor Asset Management
In terms of the standing of the Jersey financial services industry in the world, of course you would expect me to say positive things, but let me for a moment provide you with some citations and endorsements, from independent and authoritative sources.
· In April 2009 Jersey was one of the first centres globally to be G20 white listed
· We are the leading centre of our kind in the Global Financial Centres Index published by the City of London
· We are a participating partner in the OECD peer review forum, and vice Chair to Monsiuer Francois d’Aubert the OECD Peer Review Group Chair which is held by France
· We have scored the highest compliance ratings yet achieved in an IMF FSAP assessment and been described as a Top Tier centre by the IMF
AND
· We were recently voted IFC of the Year by the internationally acclaimed Society of Trustee and Estate Practitioners or STEP as they are better known, representing 15,000 of the worlds leading private client and wealth management advisers
Given these credentials we are often surprised and puzzled by the view of Îles de la Manche, as portrayed by the french media, where we are more commonly described as ‘le paradis fiscal’
During the period of the G20 white listing process I completed more than 40 media interviews including most of the main french TV channels, le Monde, la tribune and others
Despite the worlds leading regulators consistently giving Jersey a clean bill of health this rather unfortunate and inaccurate portrayal of Jersey has clearly taken root with the french media.
With such an eminent and influential audience before me I would like to take just a few moments to explain what we are as a finance centre, and what we are not. My hope is that we just might persuade you to become Advocates and Ambassadors for Jersey when you return home!
So are we a Weapons of Tax Destruction?
There is compelling evidence to say that we are not.
Jersey competes for business on exactly the same basis as the 70 other countries who offer some kind of benign tax neutral regime to the overseas investor; that is, on a mix of business expertise, political and social stability, modern infrastructure, good communications and sound regulation.
Without international capital attracted on exactly the same basis; the US and UK, and many other nations could not hope to fund their significant budget deficits.
Numerous studies undertaken by internationally respected academics evidence beyond question that IFCs are efficient allocators of capital.
IFCs act as way stations, gathering capital from around the world where it is not needed, and then conduiting that capital to where it can most effectively deployed. Tax is paid on capital before it arrives in the way station, and it will be paid when it leaves the way station as it is invested and put to work.
This allows large proximate onshore economies to operate the domestic tax systems they need, without dislocation from the need to offer attractive tax treatment in their primary tax framework, for foreign investment.
This has been proven in numerous studies to increase economic activity, increase jobs and increase wealth creation, such that a boost to tax take is generated
In Jersey we believe in fair play and respect for others; we still filter in turn at roundabouts, recognising the other driver has just as much right to be on the road and get to where he is going, safely, as we do
We stand ready to continue to play our role as a conduit of international mobile capital around the world, including into developing economies. We believe in opportunity for all, and protection for all, in good governance, transparency and sound regulation.
I sincerely hope you will go away with an informed understanding of the ‘real’ Jersey and that the ties between the French business community in Britain and in Jersey will have been considerably strengthened through this visit.
Most of all, as you have been kind enough to come, and to listen, I wish you a very enjoyable stay
Thank you
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