In what continues to be, and will always be, a complex and ever changing environment, the work Jersey Finance undertakes is vital in setting the jurisdiction apart from others. The team at Jersey Finance works hard to ensure that Jersey remains competitive, and that the Island retains its global reputation as an international finance centre (IFC) of excellence.
It is apparent that quality IFCs, like Jersey, will have an integral part to play in the economic and social recovery that will be necessary as the world works through and starts to recover from Covid-19, supporting global financial flows and helping to channel capital to where it is needed most in the world, and ensuring assets are secure and protected.
As predicted, the Brexit withdrawal process added further to the climate of uncertainty, however Jersey is extremely well-positioned to service investors seeking stability and certainty, with reassurances that Jersey’s financial services industry will continue to be able to operate in both the UK and EU after Brexit as it did before.
Finally, the global regulatory landscape continues to evolve, and Jersey Finance is key to the collaboration between our industry Members, Government and Regulator in responding to these changes. This collaboration results in innovation in our legislative framework, specifically this year on the Limited Partnership and LLC changes.
As we look ahead to 2021, I would like to extend my thanks to my predecessor Chairman, Gunther Thumann, to Joe Moynihan, his senior management team and all the staff at Jersey Finance for their work and commitment on behalf of the industry during what has surely been one of the most challenging and unsettling periods the industry has ever faced.
I am proud to take on the role of Chairman of Jersey Finance, and look forward to 2021 as a year in which we can emerge even stronger.”
Through adversity, we have still seen significant strides forward in the industry in 2020 – testament to our ongoing resilience and innate ability to adapt and innovate.
Around the globe, our business development teams have created closer connections and collaboration with potential business flows to Jersey, working across time zones together to present Jersey’s proposition and showcase our internationalism, with many promising commercial opportunities now in the pipeline.
In 2020, we set out a programme of activity that would see us make a serious commitment to establishing Jersey’s vision as a centre for sustainable finance; launched our Global Jersey campaign, highlighting our international connections and expertise, which saw more than 1,200 delegates tune in virtually to a special webinar series in September; we launched the inaugural Jersey Finance Rising Stars Awards, celebrating the finance industry’s freshest upcoming talent; and successfully transformed our annual flagship private wealth conference in December into a wholly virtual experience, offering a similar personalised and interactive experience to our face-to-face event usually held in London.
In addition to this, we have continued to win awards that underline our reputation as a world leading international finance centre, courtesy of Citywealth and Wealthbriefing; we have launched our own podcast ‘Jersey Heard’ and published more research reports on lawtech, funds, international fund domiciliation and the Asian Next Generation.
At home, despite it being an unusual and difficult year for many, we have been as active as ever – providing timely and informative content and updates to our Members and, despite not being able to host as many events in person as we had hoped in 2020 for CEO Connect, we were delighted to hear from a wide range of expert speakers virtually.
Looking forwards then, throughout the crisis we have spoken about how Jersey, as a quality IFC, has a role to play in economic and social recovery. While there are clearly bumps in the road ahead – as the spotlight turns on IFCs just as it did in the wake of the global financial crisis more than a decade ago – the expertise, neutrality and stability we offer will be absolutely fundamental in enabling economies to be rebuilt.
2021 marks both the 60th anniversary year of the finance industry in Jersey and the 20th anniversary of Jersey Finance. I am confident that the global capabilities, global expertise, and global reach Jersey has established during that time will stand us in good stead to ensure the continued success of the finance industry for the benefit of our Island and of our global community.”
In what was an extraordinary year, and despite the impact of Covid-19, activity levels right across our international markets have remained strong. Our global team collaborated extensively, adopting a joined-up approach to support Jersey’s client base.
Jersey Finance meetings with Gatekeepers
economic value generated for the benefit of Jersey’s finance sector
strategic engagements by our global business development team
attendees at Jersey Finance events across all regions
Both the pandemic and the uncertainty fuelled by ongoing Brexit negotiations have served to sharpen the focus on the fundamentals required from IFCs – stability, reputation, expertise, legal certainty and connectivity – and Jersey Finance’s activity over the past year has focussed on amplifying these messages. For the private wealth and specifically family office community, our UK Director, Robert Moore, hosted a series of targeted roundtable events focussed on Jersey’s ten key strengths. Similarly, from a funds perspective, our Funds Masterclass series and various thought leadership articles have repeatedly emphasised the ‘no-change in the face of Brexit’ outlook; the stability and respectability that Jersey offers; and, with the changes to the limited partnerships law, how our IFC is making it easier for managers to relocate.
Over many decades, Jersey has built strong connections with Africa by supporting both inbound and outbound investment for private and institutional investors. Throughout 2020, the Jersey Finance team continued to engage strategically with key stakeholders across our key African markets. Our ground-breaking research ‘South Africa Fund Managers – Trends in Fund Domiciliation and Capital Raising’ explores the emerging trends for fund domiciliation and capital raising, particularly as a route for private equity impact investing into the wider African continent, underpinning our activity within the region to attract new funds business to Jersey. We also participated in joint-activity with Invest Africa, the Lagos Chamber of Commerce and Industry, Chapel Hill Denham and were delighted to support the Africa Debate again.
The outbreak of Covid-19, together with the increasingly complex regulatory environment more widely, has meant that investors in Asia are increasingly looking for jurisdictions that can offer certainty and stability. During this time, we continued to develop strategic relationships highlighting our credentials in private wealth structuring and deepening our connections in Asia to distinguish Jersey as a specialist fund jurisdiction in the region. Interviews and virtual events with Hubbis, plus our white paper on Asia’s wealth transfer, reflect our commitment to the region as we actively work on building relationships with the next generation who will inherit or create much of Asia’s vast wealth in the future.
Based in our regional office in the DIFC, our team ensured our on the ground engagement in the region continued by undertaking and participating in strategic engagements both virtually and (increasingly in the second half of the year as travel resumed across the region) at smaller scale physical events and meetings within key markets in the GCC. We delivered a joint webinar with Knight Frank Middle East on the APAC & European Commercial Real Estate markets, collaborated on the launch of AAOIFI’s ground-breaking three-year study on the global footprint and adoption of Sharia-compliant finance, and partnered with the Middle East team of international law firm Trowers & Hamlins to co-present a funds-focussed virtual event. Our flagship ‘Women in Leadership’ series turned three this year and was successfully held virtually, with a more global outlook and focus.
2020 marked the one-year anniversary of the launch of our New York office, and it’s been a very productive year. We completed a successful outreach programme and established strong relationships with a range of key funds and legal professionals in the region – Jersey was often better known for private wealth, but that’s no longer the case. To complement this, we created a video outlining Jersey’s strengths and its appeal to the US funds community. We launched evidence-based research, particularly on the issues around fund domiciliation, and we held a series of funds events, moving seamlessly to virtual delivery. Alongside this, we promoted our key messages in funds publications, newsletters and on websites, and created a brochure to showcase Jersey as an ideal gateway to Europe for US fund managers.
Bank deposits in Jersey held up well in the face of the unprecedented impact of the pandemic on world economies, recording only a small drop, and Jersey continues to house the headquarters of a number of international banking organisations.
Launched in January, and used throughout the year to promote Jersey’s banking offering, our series of three videos, recorded with FT title ‘The Banker’, highlight Jersey’s strengths in light of Brexit, the impact of digital on the banking sector, and innovation in personal banking. To promote Jersey’s reputation in the banking sector, we published simple explainers and a glossary of terms as part of our Put Simply campaign aimed at non-finance audiences.
in banking deposits (as at 30 September 2020, JFSC)
highly-skilled and experienced financial professionals (as at June 2020, Statistics Jersey)
international representation including UK, US, Africa and the GCC
growing to a new record level of £365.6bn in the third quarter of 2020, up 7% year-on-year. This was driven by growth in the alternative asset classes, including private equity, venture capital, infrastructure and real estate, which saw growth of 12% over the year.
In 2020, our funds activity centered around the results of our research report into fund domiciliation by IFI Global, with a range of webinars, podcasts and articles all highlighting the key findings of the report alongside how Jersey can address the concerns of investors around key drivers including Brexit, BEPS, substance and transparency.
Changes to Jersey’s LP law which – after swift collaboration with industry and the regulator – came into effect in July, now make it easier for fund managers to migrate to Jersey.
Our flagship Funds Masterclass series moved to a series of virtual events, which were well attended by more than 1,500 people, including a record-breaking attendance of more than 600 at our final masterclass event of the year.
Net Asset Value of regulated funds under administration (as at 30 September 2020, JFSC)
Jersey Private Funds authorised (as at 30 September 2020, JFSC)
annual growth in Jersey Private Funds (as at 30 September 2020, JFSC)
Limited Partnerships created in Q4 2020 - a record number
with more than £600bn in trusts managed by locally regulated trust company businesses, and one of the world’s largest branches of Society of Trust and Estate Practitioners (STEP).
For family offices, the global pandemic served to sharpen the focus on the fundamentals required from IFCs – stability, reputation, expertise, legal certainty and connectivity – and Jersey Finance’s activity over the past year focussed on amplifying these fundamentals to the family office community around the globe.
Throughout the year, we built up our dedicated online hub of information adding more videos, podcasts, articles and interviews which explore the issues and priorities that matter most to family office clients.
We also held our first-ever virtual annual private wealth conference in December 2020, which took place in a highly innovative, interactive format and attracted a global audience – another first for our flagship private wealth event.
Jersey Foundations formed since their creation in 2009 (JFSC)
Jersey has one of the largest branches of the Society of Trust and Estate Practitioners (STEP), globally (as at 31 December 2020)
trusts are administered in Jersey (as of December 2019, JFSC)
Attended our first-ever virtual private wealth conference in December 2020
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.
Based in the Channel Islands, TISE – The International Stock Exchange (TISE) – achieved 3,162 securities on its official list (as at 31 December 2020, TISE). In 2020, there were 831 new listings on TISE, which is a rise of 27% year-on-year.
Jersey companies listed on global exchanges (as at 30 December 2020, JFL)
market capitalisation (as at 30 December 2020, JFL)
total number of Jersey companies on the registry (as at 30 September 2020)
listed securities on The International Stock Exchange (TISE) as at 31 December 2020
Throughout the year, we collaborated extensively with Digital Jersey in engaging our Members, co-hosting our ‘Fintech Focus’ series of thought-leadership webinars featuring fintech experts and ‘Fintech 9×5‘. Together we launched our Fintech Community of Interest Group and engaged Jersey’s major trade associations to understand their digital needs and priorities.
Our report ‘The Opportunities and Threats Posed by Lawtech to the Legal Industry in Jersey’ was produced in partnership with the University of Birmingham, with outcomes of the report launched via a webinar and discussed extensively in articles, podcasts and features.
inJersey ranks 2nd in the World Broadband Speed League
digital and creative businesses in Jersey
Jersey-based fintechs on our fintech map
Our private wealth conference, entitled ‘Making a Positive Impact’, focussed on the themes of sustainable finance and philanthropy; while our joint initiative with Durrell, the ‘Jersey Fund for a Wilder World’, was introduced to our funds community, adding to Jersey’s credentials in this area.
We also committed to articulating a bold and ambitious long-term vision for sustainable finance, engaging with independent consultancy Equilibrium Futures, to provide insights, set out a clear long-term vision for Jersey and develop an initial two-year strategy that will build on existing and explore new opportunities across the environmental, social and governance (ESG) space and, ultimately, support our drive to position Jersey as a centre of excellence for sustainable finance.
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.
Research26 August 2020
Research5 November 2020
Despite a challenging environment, we continued to promote Jersey as an IFC, globally, with record-breaking engagement achieved using digital channels including our website, direct targeted email and social media.
attendees at Jersey Finance events
increase in social users across Jersey Finance channels
increase in unique visitors to our website homepage
increase in traffic to events website pages
of Members speak highly of Jersey Finance
of our Members are favourable towards Jersey Finance
of Members know Jersey Finance at least fairly well
Our Jersey for Good campaign featured local businesses and their employees demonstrating how the industry’s workforce has worked even harder to support the Island during the pandemic, to help improve lives locally and support the things they care about.
nominations for our inaugural Rising Stars Awards
votes for the 35 shortlisted professionals
jobs in finance sector
private sector jobs in Jersey within financial services
At Jersey Finance we were proud to be awarded Jersey Good Business Charter status and be among the first companies to adopt the Jersey Living Wage, as well as sign up to Government’s Putting Children First pledge. At the start of 2020, we became a member of the Eco Active Business Network, and by November, we achieved Eco-Active Business status.
Our inaugural Rising Stars Awards moved to a digital format, celebrating up and coming talent across the industry. While our programme of education initiatives was, understandably, disrupted by the pandemic – the resulting closure of schools and colleges, and limitations around events and work placements – we were still able to reach local students through a virtually-held Skills Jersey event.
Responding to the global environment and to maintain Jersey’s edge as a leading international finance centre, Jersey expanded its product range, for example, by amending its Limited Partnership laws.
Collaboration with the government and the JFSC remains a focus, and we have worked closely on a variety of projects, including ongoing Brexit discussions, the introduction of new LLC and registry legislation and the JFSC Portal, while work is also under way to modernise the framework for local business to be conducted digitally.
In addition, we submitted the business case for changes to the security interests legislation, which is the product of a long-term collaboration with industry.
We also continue to focus on family offices, building on our philanthropic offering as a jurisdiction as well as the regulation of pensions.
In addition, there is ongoing work with the various stakeholders in respect of our compliance with international regulatory requirements.
Members can keep up to date with all the latest legal and regulatory updates via our technical update.