Jersey Finance has reaffirmed its objection to the activities of vulture funds and confirmed that this type of international debt relief business is not welcome in Jersey.
The UK has passed legislation to control vulture fund activity and the Jersey authorities are considering whether it can do the same. A consultation paper has been issued seeking views and a working party has been formed on which Industry members are sitting. Geoff Cook, chief executive, Jersey Finance Limited, commented:
‘While we cannot pre-empt the findings of the consultation, as an Industry we are keen to ensure that vulture funds do not find a home in Jersey and that legislation is introduced to control them similar to in the UK.’ He added:
It is not easy legislation to introduce because there are many types of debt re-structuring activity which are legitimate and important as part of the movement of capital and the growth of companies around the world and we must be careful not to damage the appeal of Jersey for legitimate business when introducing any form of legislation.’
‘Nevertheless, and subject to the findings of the consultation, we would urge the authorities to work as quickly as they can to bring in appropriate measures to block vulture funds using Jersey.’