For the UK, the Brexit withdrawal process will undoubtedly give further rise to this climate of uncertainty. But for Jersey, we are certain that our forward-thinking scenario planning puts our financial service industry in a stable position.
Jersey clearly demonstrated its leading position among IFCs in 2019.
We received a positive outcome from the OECD’s Harmful Tax Practices Review which recognised Jersey’s stable and robust business environment, and confirmed our domestic legal framework is “not harmful”.
Also, the decision to align with the EU’s 5th Anti Money Laundering Directive clearly demonstrated our commitment to being a cooperative jurisdiction and since our announcement, both a UK parliamentary review and the Financial Action Taskforce have praised Jersey’s beneficial ownership processes as an example of best practice.
On-Island, Jersey Finance collaborated with our Members to drive innovation in our legislative framework, specifically on the Registry Law, amendments to the Trusts, Charities and LLC legislation. We also ensured industry views were represented in consultations on pensions regulation and the UK’s proposed Stamp Duty Land Tax Surcharge. Jersey’s input during the new Capital Gains Tax regime roll-out provided clear insights on how we ensure better futures for clients and investors doing business in the UK.
Finally, I extend my thanks to all those who contributed to our work in 2019 which will set us up well for the challenges and opportunities we begin to see in 2020 and beyond. I should also like to thank Joe Moynihan, his senior management team and all the staff at Jersey Finance for their work on behalf of the industry.
I look forward to supporting them in 2020.”
Reflecting on my first year as Chief Executive of Jersey Finance, I believe that what we’ve achieved over the year has been significant, not least of all with the development of our activity in our overseas markets.
October saw the opening of our New York office, following the appointment of a new business development lead to help drive forward our US ambitions. In our traditional markets, we celebrated the 10-year anniversary of the opening of our Hong Kong office, a women and wealth management event series in the Gulf region, and in Africa we attracted new audiences through a series of successful private wealth and funds events.
Over the past 12 months, we’ve been successful in developing new products, such as the International Savings Plan, and placing a greater focus on developing our family office proposition, not least of all through our focussed research which provided valuable insights into wealth management for the finance industry based in the Gulf region and China. We also undertook insightful research into the technical and life sciences sector, as well as worked with the Cebr to identify key areas that increase workforce productivity.
In addition, we won a suite of awards for Best International Finance Centre of the Year at the Citywealth International Finance Centre Awards 2019, at the WealthBriefing Asia Awards 2019 and at the International Investment Awards 2019.
Closer to home, we set up our education working group with Members and key partners to look at ways to attract and retain talent in our industry. We have trialled attendance at UK graduate fairs with Skills Jersey and Digital Jersey to attract talent back to the Island, have actively contributed to the government’s post-16 education strategy and our Future Connect programme for young professionals has gone from strength to strength, with more joining our networking events each month.
It was also pleasing to read that our Members are overwhelming in support of Jersey Finance, with 98% reporting favourably towards us. Working with industry, alongside key partners, is one of our distinct strengths as a jurisdiction and it is this joined-up approach that has kept us on a firm footing despite the wider geopolitical and regulatory challenges.
As we move into 2020, we have an extensive, exciting programme of activity ahead and I look forward to working with our Members and partners to ensure the continued success of the finance industry.”
Jersey’s forward-thinking approach has continued to stand the Island in good stead with regards to our main sectors.
Jersey Finance Member meetings across 2019
economic value generated for the benefit of Jersey’s finance sector
meetings in the Gulf region
attendees at Jersey Finance events across all regions
Jersey continued to position itself as the ‘no change’ jurisdiction in the face of Brexit. This was especially so with regards to our alternative funds sector, which has maintained its strong growth trajectory in 2019. Meanwhile our flagship conferences saw unprecedented attendance with more than 700 attendees across both events and the launch of our funds masterclass series proved successful in the London and Swiss markets.
Africa has continued to offer significant opportunity for Jersey as the Island looks to support the rising demand for infrastructure investment and increasing sophistication of the continent’s investors.
To cement Jersey’s standing as a stable jurisdiction, Jersey Finance supported high-profile events such as the Africa Financial Services Investment Conference in May and built on the Island’s growing links with Kenya at the British High Commission Christmas reception in Nairobi marking the first anniversary of the signing of a Memorandum of Understanding between the Jersey and Kenyan governments. In addition, Jersey Finance extended the funds masterclass series with a breakfast event in Cape Town.
2019 marked 10 years since Jersey Finance established its Hong Kong office. Marking the occasion, we worked with Asian-focussed financial publisher, Hubbis, to launch a new study looking at the evolution of family offices in Asia. The report found the preferences of ultra-high-net-worth families and the proliferation of global regulations to be the key drivers shaping the family office landscape.
Jersey’s long-term commitment to the region was further re-enforced through presence at high-profile events such as at the Hubbis Malaysian and China Wealth Management Forums, and STEP Asia in Singapore. Jersey was also crowned, for the second year running, ‘Best International Finance Centre’ at the annual WealthBriefing Asia Awards.
To meet the growing opportunities in the Gulf region, two key appointments were made in the first half of the year. Ella Moldoveanu, covering the Gulf markets, and Faizal Bhana concentrating on the Middle East and Africa joined Jersey Finance’s Dubai office. This followed the launch of Jersey’s innovative International Savings Plans (ISPs), which holds particular appeal in the Gulf region.
Building on the success of the 2018 ‘Women in Wealth Management’ event in Riyadh, Jersey Finance ran a series of events in Jeddah, Kuwait City and Dubai to empower women in fulfilling their roles as key partners in building the future of the nation.
Last year also saw Jersey Finance extend its reach with an inaugural private wealth seminar in Beirut, exploring some of the vital issues facing high-net-worth families and businesses and the opportunities for international financial centres to play a key role.
A significant event in 2019 was the launch of the Jersey Finance New York office in October, aimed at enhancing Jersey’s visibility in the country and promoting the Island’s position as a gateway to Europe for US alternative fund managers.
The official launch, attended by Jersey government officials, followed the appointment of Philip A. Pirecki as our business development lead in the US.
Activity was further supported by the publication of a new US fund manager focussed factsheet, as well as sponsorship of US SuperReturn events and a funds breakfast masterclass events organised in collaboration with IFI Global.
Towards the end of 2019, Jersey Finance worked with FT title The Banker on three videos highlighting Jersey’s strengths in light of Brexit, the impact of digital on the banking sector, and innovation in personal banking. These will be launched in January 2020 and used throughout the year to promote Jersey’s banking offering.
in banking deposits (as at 30 September 2019, JFSC)
highly-skilled and experienced financial professionals
international representation including UK, US, Africa and the GCC
In addition, marketing into Europe through National Private Placement Regimes continued to prove an attractive route with 310 funds marketed this way at the last count.
2019 saw the launch of the funds masterclass series with a number of well attended events in London, Switzerland, South Africa and New York. This successful series will continue into 2020 with additional dates as well as an Abu Dhabi event.
The funds sector also welcomed the signing of a new Memorandum of Understanding between the Jersey Financial Services Commission (JFSC), and the UK’s Financial Conduct Authority (FCA), which gave managers added certainty around accessing UK investor capital throughout the Brexit process, while the European Investment Bank published a new policy providing clarity on Jersey’s ability to continue to support the objectives of the European Investment Fund.
Net Asset Value of regulated funds under administration (as at 30 September 2019, JFSC)
Jersey fund promoters (Monterey Jersey Fund Report, 2018)
assets under management in qualifying segregated managed accounts
Jersey Private Funds authorised (as at 30 September 2019, JFSC)
To help us better understand the mindset of today’s family office, we worked closely with a number of family offices on a fieldwork study that highlights their personal experiences and offers an insight into their rationale when it comes to jurisdictional decisions.
2019 saw us team up once again with the STEP Journal to publish a Jersey-focussed magazine, distributed to STEP members globally and at our London private wealth conference.
Jersey Foundations formed since their creation in 2009 (as at December 2019, JFSC)
Still one of the largest branches of the Society of Trust and Estate Practitioners (STEP), globally
July 2019 marked 10 years since the Jersey Foundations Law came into force
Attend our flagship conference in London
with the greatest number of FTSE 100 companies and AIM companies registered outside the UK. The Island is home to companies listed on stock exchanges in London, Hong Kong, Toronto and New York.
In 2019, to promote Jersey’s reputation in the capital markets sector, Jersey Finance published simple explainers and a glossary of terms as part of our Put Simply campaign aimed at non-finance audiences.
Jersey companies listed on global exchanges (as at 30 September 2019, Jersey Finance)
market capitalisation (as at 30 September 2019, Jersey Finance)
total number of Jersey companies on the registry (as at 30 September 2019, JFSC)
listed securities on The International Stock Exchange (TISE) as at December 2019
To demonstrate what sets Jersey apart, and to help cement our standing as a highly-successful digital jurisdiction, we published a new report on innovation and delivered a number of firsts, including holding the Island’s first Fintech Demo Day and producing Jersey’s first Fintech Map, highlighting Jersey’s thriving tech community and the depth and breadth of innovative fintech solutions available on the Island.
in the World Broadband Speed League
digital and creative businesses in Jersey
digital and technology professionals
Jersey-based experts had a presence at the Global Impact Investing Network (GIIN) Conference in October 2019 and we delivered an industry update on sustainable finance at the Private Client and Wealth Management Conference in Jersey.
SRI funds administered in Jersey
currently under administration in SRI funds
In delivering these insights we add clarity to Jersey’s proposition and the positive impact it makes in both local and global economies, now and in the future.
led to another record-breaking year for marketing and communications outputs.
attendees at Jersey Finance events
increase in overall attendance at Jersey Finance events
increase in the number of website logins during 2019
increase in traffic to industry news pages during 2019
of Members speak highly of Jersey Finance
of our Members are favourable towards Jersey Finance
of Members know Jersey Finance at least fairly well
Meanwhile employment figures in the finance sector continued to grow.
sixth formers on work placements with 25 of our Member firms in our 2019 Life in Finance scheme
young people presented to at careers fairs and in schools in Jersey and the UK
jobs expected to be created in the next three years throughout Jersey’s finance sector
sub-sectors which predict the most growth are: trust and company services; real estate funds; and private equity funds
Two of the most significant developments for 2019 were around substance and Jersey’s register of beneficial ownership.
tax information exchange agreements
double taxation agreements
In March, EU Finance Ministers (ECOFIN) formally confirmed Jersey’s position as a cooperative jurisdiction following an extended period of screening.
The EU’s positive assessment came as a result of the Island’s collaborative dialogue with the EU Code of Conduct Group (COCG), which was tasked by the EU Council with assessing jurisdictions in the following three areas: tax transparency, fair taxation and compliance with anti–base erosion and profit shifting (BEPS) measures. As a result, Government of Jersey introduced the Taxation (Companies – Economic Substance) (Jersey) Law 2019 (Law) which incorporates an economic substance test on tax resident companies.
In June, the Government of Jersey announced a commitment to align itself with the principles of the EU’s 5th Anti Money Laundering Directive and move towards a public registry of beneficial ownership. The decision came following ongoing engagement between Jersey, the other Crown Dependencies, the EU and the UK, and is in line with Jersey’s long-held stance of taking this step once a clear direction of travel towards an international standard was in sight. This development puts Jersey in a far more advanced position than most other countries and at the forefront of the transparency debate. And, only in November, Jersey’s 30-years-old register was cited as an example of best practice by the Financial Action Task Force (FATF) in a report identifying the challenges facing countries to identify the beneficial owners of companies.
Members can keep up to date with all the latest legal and regulatory updates via our technical update.