I live and work in Jersey. Can my employer offer me this ISP, so I can access my savings before the age of 50 or on a trigger event? If they can’t be offered to local residents why are they a good thing for the Island?
These new plans are for non-residents only. It is anticipated that the introduction of ISPs will attract significant new business to the Island as the day-to-day running of such schemes will be undertaken on Island. It is also anticipated that the schemes will require local legal services and banking facilities.
Are these new ISPs being offered to residents in the Gulf region only?
No, ISPs have not been introduced solely for Gulf region residents. However, it is envisaged that there will be a lot of interest from the Gulf region as it is anticipated the provision of savings plans such as ISPs may become mandatory for end of service benefit payments. There may well be an increase in demand for these schemes by international employers in other jurisdictions such as Asia and Africa.
Does a multi-national company have to have a minimum number of employees before they can set up an ISP?
There is no minimum requirement for the number of employees needed to set up an ISP.
I am an employee, based in England, of a multi-national company offering ISPs. Can I have an ISP and a pension?
Yes, it is possible to have both an ISP and a pension. Your employer decides whether to offer an ISP in addition to a pension.
If ISPs are offered around the world, what makes Jersey’s ISP different? Why would a multi-national company choose Jersey over another jurisdiction?
Jersey is a well-regulated and politically stable jurisdiction which is attractive to multi-national companies. Jersey also has more than 13,500 finance professionals and 60 years’ experience in wealth management, so the jurisdiction is ready to service and support multi-national companies wishing to set up ISPs in Jersey.
I am a multi-national company and I want to set up an ISP but offer different benefits to different categories of employees – can I do this?
Yes, ISPs are a flexible product that can be tailored by the employer for the benefit of employees. An ISP can have different categories for different employees. For example, ISPs can have specific benefits for Gulf region employees, such as an EoSB section, and different benefits for employees in other jurisdictions, such as pensions, savings or shares.
Will ISPs use local banking services and will different accounts be required for each member of the plan?
No, there will be one overall bank account which holds the entirety of the ISP funds.
In most cases, one pot of funds will be invested in an appropriate investment solution from an overall bank account. Then each member’s allocation will be tracked through the investment manager’s platform or an administration platform.
However, some members of an ISP may require greater control of their individual pot if they are contributing to their plan.