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Annual Review 2015

www.jerseyfinance.je


Contents Chairman’s Statement .......................................1 By Robert Christensen

Chief Executive Officer’s Statement ............................................................................................2 By Geoff Cook

Progress & Achievements .........................4 Research & Innovation .....................................6 Supporting Jersey .........................................................8 Banking

................................................................................................

10

Funds ............................................................................................................12 Private Wealth .........................................................................14 Capital Markets ...................................................................16 Market Development .............................................18 Transparency & Taxation ..........................22 Members’ Feedback/KPIs ..........................26 Digital Developments ..........................................30 Contact ......................................................................................................32

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2015 JERSEY FINANCE ANNUAL REVIEW 2015 | P1

Chairman’s Statement by Robert Christensen Chairman, Jersey Finance

Welcome to Jersey Finance’s review of 2015, which sets out our progress in advancing Members’ priorities in support of Jersey’s finance industry.

Much of our work is devoted to managing the reputation of Jersey. During the past three years we have commissioned and published three landmark independent reports which demonstrate that much of what is written by critics of international finance centres (IFCs) is based upon incorrect data or assumptions. More such initiatives that advance and explain the positive role which Jersey plays in the global economy will be seen in 2016. We have also continued to keep Jersey at the forefront of moves to promote cooperation and openness in taxation and related issues. This recently led the OECD’s top tax official to pay tribute to Jersey as ‘one of the first and best’ in shaping the transparency landscape. And ever-vigilant in seeking ways to strengthen the Island’s offering, we have launched the Future of Banking project to examine opportunities for our banks to expand into new activities. At a time when banking margins and growth are under pressure globally, this is exactly the sort of work that Jersey Finance should be doing.

The boost given to Jersey’s economic growth by the finance industry is noted later in this review. But another benefit brought to the Island is the increasing numbers of business visits, predominantly in connection with financial services. Numbers were up 8.5% in 2015, supporting the airlines that provide excellent connectivity for all of Jersey’s activities. I would like to thank the many people who have been behind our successes during 2015. The Government of Jersey, the Jersey Financial Services Commission, my fellow directors and of course our Members who devote so much time and resource on behalf of the industry and the people of Jersey. By no means least, the efforts of Geoff Cook, Richard Corrigan and all the Jersey Finance team, who make an enormous contribution to the well-being of the Island and its biggest economic sector. I have greatly enjoyed my first full year as Chairman and look forward to supporting them all during 2016.


2015 P2 | JERSEY FINANCE ANNUAL REVIEW 2015

Chief Executive’s Statement Geoff Cook Chief Executive, Jersey Finance

It has been another year of solid progress for Jersey Finance, with the completion of our ‘Journey to 2015’ programme and the launch of the next three-year plan.


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JERSEY FINANCE ANNUAL REVIEW 2015 | P3

We have three overarching strategic objectives for the 2016-19 period. The first is to further advance Jersey’s reputation, a key focus for Members according to the Ipsos MORI Members’ survey summarised later in this review. We will pursue this through several activities, most notably through the publication of the type of evidence-based research papers which we have been producing over the last three years. The latest, published in 2015, was Jersey’s Contribution to FDI which demonstrated how IFCs help companies transfer assets across borders by reducing the risks involved, particularly for countries that are less politically stable or not so well-regulated. Our previous Jersey’s Value to Africa report has continued to attract media attention, including in the region. We are also looking to launch a report in early 2016 on Jersey’s Value to Europe, which will refresh the Jersey’s Value to Britain report and additionally analyse the Island’s economic connections with Continental Europe. The second strategic objective is to enhance overseas awareness of Jersey, using our increasingly well-focused contact strategy to promote Jersey’s brand in key international markets. Business development and marketing activities in our target regions have been extensive and we have hosted a successful roadshow programme with delegate attendance up by as much as 32% at some events. In this context, our efforts have been greatly enhanced by the decision of the European Securities and Markets Authority to confirm Jersey as one of only two IFCs deemed ready for a Europe-wide passport under the EU Alternative Investment Fund Managers Directive (AIFMD). Until the third country passport becomes a reality, the existing access arrangements through national private placement regimes will continue. Indeed, they are likely to run in tandem for at least three years after the passport is introduced, giving fund managers greater flexibility in marketing to investors in Europe and beyond. Finally, our third objective is to strengthen the competitive position of Jersey’s finance industry through research and innovation. We continue to work closely with financial policy teams in Government and at the Jersey Financial Services Commission to identify product developments, interacting with Members through our working groups and sharing information with them through our website. A good example is the work we have done to promote Jersey as a jurisdiction that can host Loan Origination Funds, which are increasingly helping fill the bank funding gap.

On top of these strategic objectives, we have continued to play a leadership role in moves to strengthen international regulation and increase transparency. During 2015, the implementation of previous initiatives on, for example, FATCA and the Common Reporting Standard continued, with Jersey in the vanguard thanks to our proactive stance in dealing with the issues. The OECD and international regulators are now targeting Base Erosion and Profit Shifting (BEPS) to ensure that tax is levied where it is due. Proposed measures to deal with BEPS have been published with a tight timetable for implementation. Jersey Finance subscribes to the principles behind the new measures and believes that, as a jurisdiction of substance, the Island will be in a strong position once they are in place. In the light of all our combined efforts, I was delighted to see that the financial sector played a crucial role in the return to growth of Jersey’s economy in 2015. Gross Value Added on the Island was up 5% in 2014, with economic activity in our industry up 9%. There was also a healthy increase in employment in financial services, which now makes up 44% of overall economic activity. Meanwhile Jersey’s credit rating was affirmed by Standard & Poors as AA+, one of the best that it awards. Another pleasing development in 2015 was the launch of Jersey’s aircraft registry, which will not only bring direct revenue from the registry itself, but also generate additional income and employment opportunities for finance, fiduciary and legal services on the Island. In addition, it will provide work for a number of technical service providers which manage and maintain aircraft assets. Finally, November saw the opening for business of the Channel Islands Financial Ombudsman service. We wish Principal Ombudsman, Douglas Melville, and his team our best wishes in providing an informal and speedy alternative to the courts in the resolution of financial services complaints. I want to conclude, as always, by thanking Members for their support in 2015. Their achievements have without doubt contributed to maintaining Jersey’s leadership position as an IFC. And we were pleased that the Ipsos MORI poll of Members again provided positive feedback on our work and campaigns, and made valuable suggestions about priorities and improvements for the future which we will work hard to deliver in 2016.


P4 | JERSEY FINANCE ANNUAL REVIEW 2015

Progress & Ac Jersey voted International Finance Centre of the Year at Citywealth International Financial Centre Awards 2015 in London for the third consecutive year Jersey’s Value to Africa report covered in African Business Review

Strong uptake in private placement as Jersey funds industry reaches seven-year high Jersey Foundations given increased flexibility through the expansion of options for mergers and continuance Jersey signs Memorandum of Understanding with South Africa Jersey Finance welcomes roll-out of US FATCA reporting platform

Jersey’s role as ‘transnational centre’ for facilitating global capital flows is highlighted at the annual City Week International Financial Services Forum in London Further flexibilities introduced for Jersey Foundations through miscellaneous amendments Jersey Finance holds its annual London Funds Conference ‘Winning Moves’, hosted by broadcaster Jeremy Paxman Jersey Finance event showcasing digital Know Your Customer innovation is a sell-out Principal Ombudsman is appointed for the Channel Islands

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Jersey is recommended by the European Securities and Markets Authority for inclusion in the first wave of ‘third non-EU countries’ whose managers can seek authorisation for a Europe-wide passport under AIFMD Jersey is named Financial Centre of the Year 2015 in the Global Investor/ISF magazine annual Investment Excellence Awards

Jersey signs a Double Taxation Agreement with the Seychelles and a Tax Information Exchange Agreement with the Republic of Korea Jersey’s 2014 Survey of Financial Institutions finds profits generated by the finance industry are at a six-year high, with record numbers of local students finding employment in the Industry

Jersey Finance launches its regular Focus on Finance newsletter, which is distributed to our database of international contacts

JFSC signs Memoranda of Understanding with Finanstilsynet (the Danish financial services regulator) and FINMA (the Swiss financial services regulator) Jersey Finance’s ‘Life in Finance’ work experience scheme concludes with 46 students securing a range of placements in 27 Member firms

Measuring Jersey’s Economy GVA and GDP 2014 reports that Jersey’s Gross Value Added grew in 2014 by 5% in real terms, driven by growth in the finance sector


JERSEY FINANCE ANNUAL REVIEW 2015 | P5

Achievements Jersey Labour Market statistics report that employment in Jersey’s finance industry increased by 400 during 2014, more than 3%

Jersey’s credit rating issued by Standard & Poor’s affirms its AA+/A-1+ long and short-term sovereign credit rating, with a stable outlook

Tax Information Exchange Agreements with Italy, Hungary and Indonesia come into force

Jersey is described as ‘one of the first and best’ in shaping the transparency landscape by a senior OECD official at Jersey Finance’s annual Private Client Conference in London European Commissioner for Economic and Financial Affairs, Pierre Moscovici, praises the Channel Islands for their ‘active engagement’ in combatting tax evasion, fraud and abusive tax avoidance, and refers to the Islands as ‘important partners to the EU’

Jersey’s latest Labour Market Survey reports that jobs in the finance sector have reached 12,820, the highest level in four years Jersey is named Best Fund Administration Centre for the third consecutive year at Investment Week’s Fund Services Awards Jersey is represented at the Commonwealth, International Monetary Fund and World Bank conferences in Lima, Peru

Channel Islands Financial Ombudsman opens for business Tax Information Exchange Agreement signed with Spain The Jersey Government announces its policy on the regulation of virtual currencies Jersey’s AA+ credit rating reaffirmed by Standard & Poor’s Intellectual Property (Registered Rights) Law comes into force Jersey Finance Asia Roadshows held in Shanghai, Hong Kong, Kuala Lumpur and Singapore

The number of Jersey funds marketing into Europe through National Private Placement Schemes (NPPRs) under AIFMD tops 200 Jersey Finance’s GCC Roadshow explores automatic exchange of information and increased sensitivities to reputational issues Jersey Finance highlights the findings of its 2014 report on Jersey’s Value to Africa at its Africa Investment Seminar in London Jersey signs a Double Taxation Agreement with Rwanda Jersey Finance launches its latest research report, Jersey’s Contribution to FDI

States enact legislation facilitating Jersey’s entry to the Single European Payments Area (SEPA) Article challenging the emotive argument around NGOs and taxes in developing countries is published in Trust & Trustees journal Jersey’s strengths as a centre for global alternative funds business is underlined by acquisition of UBS Asset Management’s Alternative Fund Services business by MUFG Investor Services


P6 | JERSEY FINANCE ANNUAL REVIEW 2015

Research

& Innovation In June 2015, Jersey Finance launched an independent report analysing the Island’s competitiveness in attracting and mobilising foreign direct investment (FDI). Jersey’s Contribution to FDI was written by Investment Consulting Associates (ICA), a global management advisory firm specialising in corporate location strategy. In this section of the Annual Review 2015, we have summarised its key findings, given an update on a previous report on Jersey’s Value to Africa and outlined other projects in the pipeline on subjects of great importance to Jersey’s finance industry.

Outbound FDI from Jersey is destined for two groups of industries:

Jersey’s Contribution to FDI

Greenfield FDI creates new physical operations such as factories, distribution centres, service centres and regional headquarters from scratch. Worldwide, Jersey originated greenfield FDI in 94 projects between 2003 and 2014 that had a total value of US$13.34 billion. The 94 greenfield investment projects originated by Jersey created over 39,000 jobs, more than twice those originating from Guernsey and the British Virgin Islands, and five times those from the Cayman Islands.

FDI originating from Jersey flows to a diverse range of countries including many emerging markets. Countries in the Island’s top 20 for both capital invested and jobs created abroad include Poland, Turkey and the Netherlands. Moreover, several African developing markets, including Uganda, Mozambique, Mali, Guinea, Egypt and Senegal, have also benefited directly and indirectly from FDI originating from Jersey.

Foreign Direct Investment

I FD

/B

GS

GF

IN

IN G

Country Y

RN

NK

X ntry Cou

E

A

A

IFC

B

C ntry Cou

TRU ST

F

Country B

ETS RK

R E -IN V

EST

IN

2. Service industries such as financial, business and software services in developed countries and other IFCs, which have a relatively lower investment value and create fewer new jobs on average.

Majority of Jersey inward greenfield projects are in two main sectors

Outward FDI

NDS FU

Coun try A

Value-adding

CAPITAL MA

Inward FDI

1. Construction and natural resources projects in emerging and developing markets, which on average have a relatively higher investment value and create a higher number of new jobs.

G

Cou ntr yZ

75%

OF THE JERSEY GREENFIELD FDI PROJECTS ARE IN THE FINANCE AND BUSINESS SECTORS


JERSEY FINANCE ANNUAL REVIEW 2015 | P7

As a small jurisdiction, Jersey attracts much less inbound greenfield FDI than larger IFCs such as Singapore, Hong Kong and Luxembourg. In the period between 2003 and 2014, there were 12 greenfield projects in Jersey financed by investment from overseas countries other than the UK. Their total value was US$237.4 million, and they created 323 jobs (excluding any FDI from the UK which is classified as domestic investment). The most important competitive advantages of Jersey as an IFC lie in the open and transparent structure of its financial institutions, its range of expert service providers, businessfriendly environment and robust regulatory framework. It offers a tax-neutral environment which provides tax certainty and allows fiscally efficient cross-border investments. And it punches well above its weight in its contribution to global development, leaving behind IFCs such as Hong Kong, Singapore, Luxembourg, Guernsey and the Cayman Islands when the size of their economies is taken into account.

Jersey’s Value to Africa This report, commissioned by Jersey Finance and published in November 2014, has continued to attract attention for highlighting barriers to investment in Africa and showing how IFCs, in particular Jersey, can offer sound business environments to help the continent fulfil its economic potential. Geoff Cook has written articles drawing attention to the report’s conclusions, including This is Africa, a Financial Times publication. The report was used to launch a series of events in Africa promoting the Island’s offering, as well as our African Investment Seminar held in London in June. It was also a useful resource for the World Economic Forum on Africa in Cape Town, also in June.

Africa needs investment to realise its full potential

US$85 TRILLION

CUMULATIVE INVESTMENT 2014  2040

Jersey’s Value to Europe Jersey Finance has launched a new research project to refresh and build on the findings of Jersey’s Value to Britain. Capital Economics, the leading London-based economic research firm responsible for the latter, will again carry out the research. It is an opportunity to reflect changes in the UK’s political landscape and developments in international initiatives. Furthermore, it will allow us to address misconceptions about Jersey’s role elsewhere in Europe by assessing the Island’s economic relationship with major EU countries.

Financial Technology TORA, a fast-growing technology and financial services company, is opening an office in Jersey from which to launch its European expansion, providing asset managers with software support. Attracted by Jersey’s leadership in the funds sector, especially in alternative asset classes, it will create jobs in a new, exciting and innovative sector. But more importantly, FinTech and innovations such as these have the potential to improve the costcompetitiveness of the finance industry by making firms more efficient. It will also disrupt existing practices, which Jersey Finance believes will create opportunities for those who are early adopters. The Island has a history of being a fast mover in financial innovation, and is well-placed to do so with emerging technology trends and new products. We will be working more closely on the FinTech agenda with Digital Jersey, an independent organisation that represents and promotes the Island’s digital industries, to identify opportunities.

Africa’s economy X 6 X6

GROWTH IN CAPITAL STOCK

has the potential to grow by 5% per annum

X4 2014 2040


P8 | JERSEY FINANCE ANNUAL REVIEW 2015

Supporting Jersey

Jersey’s finance industry continues to make a major contribution to the Island’s economy, which has returned to growth for the first time since the onset of the global financial crisis.

According to the Government of Jersey’s Statistics Unit, Gross Value Added (GVA) grew by 5% in real terms in 2014, largely driven by the performance of the finance industry which generated 44% of the Island’s GVA, by far the largest contributing industry. Economic activity in the industry increased 9% year-on-year, more than for any other sector.

Jersey Finance’s annual ‘Life in Finance’ scheme provides a valuable introduction to the Industry for young people thinking about such a career. This year’s scheme proved even more successful than the last with a record 84 applicants, from whom 46 students from six schools were placed in a range of placements in 27 Member firms.

It is this level of performance that enables the finance industry to provide work for more than 12,800 people. It spends around £350 million on the Island each year, and contributes an estimated 50% of total tax revenue (around £260m in 2014). However, Jersey Finance Members also contribute much more to the community through their own programmes, including environmental projects, arts events and sport.

The students told us they gained a greater understanding of the working environment and the importance of high standards in all aspects of the Industry. ‘It was an absolutely great experience,’ said one. ‘I couldn’t have asked for a better three weeks.’ Another said the experience enabled her to think about future career possibilities in finance. A third said it was so rare to get work experience in such a prestigious firm: ‘I’m so glad I was part of the scheme this year.’

Education A vital activity from the point of view of both the finance industry and the Island is our engagement with students through their education and beyond. While we hope that young people will consider a career in finance, we also help them to make the right career choices and follow them through to success.

Jersey Finance Members contribute considerable staff time each year in preparing young people for the jobs market, helping them with their CVs, interview techniques, internships and work experience. Our Members also support government schemes such as Advance to Work and Advance Plus.


JERSEY FINANCE ANNUAL REVIEW 2015 | P9

Jersey Finance Members contribute considerable staff time each year in preparing young people for the jobs market

GROSS GRO GR ROS OSS S VALUE V VA ALU AL UE ADDED UE A AD DDE DD DED D BY BY INDUSTRY IND IN NDU DUS UST TRY TR RY

13.2%

3.5%

TRANSPORT, TRA TR TRA RAN R AN AN NS NSP SP S P PO O ORT OR R RT T, STORAGE T, ST S T TO O OR ORA R RA AG A G GE E & COMMUNICATION C CO O OM M MM MU M UN U N NIC IC CA CAT C A ATI AT T TIO IIO ON O N

R ENTAL RE ENT E EN NT TAL TA AL

6.0% 6.0% 6. 0% 9.2% 1.3%

ELECTRICITY, ELE E EL LE LEC ECT EC CT TRI T TR RICIT RIC CIT ITY TY, TY Y, GAS GAS GA AS & WATER W WA ATE A AT TER TE ER R

7.1%

CONSTRUCTION CO CO ON ONS N NS ST STR S TRU RUC R UC CT T ON TIO ON

OTHER OTH OT THE HER H ER R BUSINESS BUS B BU US S NE SIN NES N ES SS S ACTIVITIES ACT A AC CT TIV TI IVI IV VIT VI IT T ES TIE ES

FINANCE FIIN NANCE NCE

3.8%

44.1% 44 4 4.1% 1% 1% 9.5%

WHOLESALE WH W HO H O OLE L LES ES E S SAL A AL L LE E & RETAIL R RET ET E TAI T TA AIL A IIL L

PUBLIC PU PU UB UBL B BL LIC L IC C ADMINISTRATION AD AD DM MIIIN MIN M N NIS IS ST STR S T TRA RAT ATI ATI TIO ION IO ON ON

1.1% 1.1% 1. 1% 1%

The finance industry provides work for more than 12,800 people

AGRICULTURE AG A G GRI RIC R IIC C CUL U ULT L LTU LT TU T UR RE E

HOTELS, HOT HO OTE TEL T ELS EL LS LS, S, BARS BAR BA ARS A RS S& RESTAURANTS RES R RE EST ES ST TAU TA AUR UR RAN R RA AN NT TS TS

MANUFACTURING MAN MA MAN NUF NU UF FAC F FA AC CTU CT TUR T UR RING R RIN NG


P10 | JERSEY FINANCE ANNUAL REVIEW 2015

Banking Jersey’s banking sector continues to attract capital from across the world, with a total value of bank deposits of almost £132bn at the end of September.

The Island’s security and strength is underlined by compliance with the Basel standards of capital adequacy: average core capital across the sector is some 50% higher than the required international standard. Our banking model is stable and diversified, and Jersey’s credit rating with Standard & Poor’s remains AA+, one of the best that the agency awards. The value of bank deposits rose and fell throughout 2015, largely in response to currency movements in the exchange rate of Sterling, the appreciating Dollar and the continuing weakness of the Euro. The number of banking licences remained at 33, ahead of the merger of ABN Amro’s Jersey activities with its larger Guernsey operation announced in September which has yet to be completed. Discussions with a number of potential arrivals on the Island continue. Meanwhile, Jersey Finance is working with the Industry to assess opportunities in the banking sector, which could include further increasing business relationships with asset managers, loan syndication and developing options for deposits which had previously been upstreamed to non-ring-fenced parents. The Future of Banking report will aim to assess how bank asset margins from existing activities can be improved, as well as promoting improved matching of bank funding with Jersey’s other core financial services pillars.

2015 Banking in numbers

During 2015, Jersey Finance participated in marketing events to support the banking sector. In May, we sponsored the Annual International Banking Conference organised by the Association of Foreign Banks in London.

Challenges Facing the Banking Industry Regulations and other measures arising from the global financial crisis continue to emerge. Many have implications for Jersey, either directly by requiring action in the Island, or indirectly by prompting financial institutions to reassess their international strategies. One important UK measure is the ring-fencing of banks’ core activities, as recommended by the Vickers Report. With the legislation now passed, UK regulators have been exploring the detailed implementation arrangements which will affect banking groups with more than £25bn of core deposits from 1 January 2019. Jersey Finance is closely monitoring the consultations, supervisory statements and draft rules emerging from bodies such as the Prudential Regulation Authority and the Financial Conduct Authority.

33

Banking Licences


JERSEY FINANCE ANNUAL REVIEW 2015 | P11

At European Union level, the Commission has been pressing member states that have not yet fully implemented the Bank Recovery and Resolution Directive (BRRD) which was due to be transposed into national law by the end of 2014. In May, the European Banking Authority (EBA) published its final guidelines on when an institution will be considered to be failing or likely to fail under the BRRD. Jersey has begun drafting legislation to ensure the Island is capable of facilitating resolutions and recoveries anticipated by the new European standard.

2%

Others

No rt h Am

4%

er

Far East

ic a

52%

14 % Middle East

Other Developments

Jersey and UK

The Chief Minister’s Department consulted during 2015 on a Dormant Bank Accounts Law, with Jersey Finance encouraging Members’ responses online by use of an innovative electronic consultation which allowed submissions to be made directly via our website.

11% European (Non-EU)

8%

The Chief Minister’s Department continues to work on proposed technical changes to the Depositors Compensation Scheme.

Other EU Members

Jersey also decided in 2015 to apply to the European Payments Council for membership of the Single European Payments Area (SEPA). If successful, Jersey banks will be able to make Euro payments to other banks in SEPA more easily, efficiently and cheaply.

Banking Deposits by Residence of Depositors

12

200

VALUE (£ BILLIONS)

10 NUMBER

9%

8 6 4 2 0

150 100 50

Geographic Analysis of Bank Licences

4,700 Employees

IA AS

CA RI AF

AM NO ER RTH IC A M ID D LE EA ST SW IT ZE RL AN D

EU O TH

ER

UK

0

SEP-14

ALL OTHER

DEC-14

MAR-15

JUN-15

EUROPEAN (NON-EU)

Bank Deposits in Jersey

£131.8 Billion

in Deposits

SEP-15


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Funds The total net asset value of Jersey funds rose by more than £13bn in 2015 to the end of September, reaching almost £219bn.

JERSEY

Jersey Finance has focused on attracting new funds and fund managers to the Island, marketing Jersey to a long list of contacts as an attractive relocation destination. Notable successes in 2015 were the arrival in Jersey of BlueCrest Capital Management, followed by the arrival of TORA, a technology and financial services company which focuses on investment management. Founded in 2004, TORA already has offices in Singapore, Tokyo, Sydney and San Francisco as well as a development centre in Romania. It has developed a strong international institutional client base and is establishing its presence in Jersey to build its European business. Initially, it will offer a range of specialist software solutions to asset managers, hedge funds and brokerage houses, including an order and execution management system and a portfolio and risk management system. We continued to invest in raising the Island’s profile in the sector through a variety of events during 2015, including our flagship Annual Funds Conference in London in March, with a record 549 people registering to attend. Entitled ‘Winning Moves’, it was introduced by broadcaster Jeremy Paxman and highlighted the opportunities offered by the Island to fund managers keen to expand in new asset classes. Furthermore, we staged two funds seminars in Switzerland for the first time, highlighting the opportunities Jersey can offer Swiss-based managers. We also hosted roundtable events with

2015 Funds in numbers

key publications such as Real Deals, and sponsored events which included two with SuperReturn, and others with the HedgeFund Intelligence European Summit, PERE and the Managed Funds Association Global Summit. In October, Jersey received recognition for the quality of its expertise, regulation and international offering by retaining its title as ‘Best International Finance Centre’ for the third consecutive year at the Investment Week Fund Services Awards.

£218.8 Billion Net Asset Value


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The implementation of the EU’s Alternative Investment Fund Managers Directive (AIFMD) has continued, with some notable successes for Jersey’s funds industry, which have strengthened our attractions for fund managers wishing to market their alternative investment funds in the EU under AIFMD. They can already do so through National Private Placement Regimes (NPPRs), which give fund managers access to professional investors without the need and costs of reporting under full compliance with AIFMD. This is a transitional arrangement expected to last until at least 2018. The number of Jersey funds marketing through NPPRs broke through the 200 barrier in June. An alternative option yet to be finalised will be through full compliance with AIFMD rules. This would allow fund managers in non-EU countries to seek authorisation for a passport to market their alternative investment funds to professional investors throughout the EU. A breakthrough on this alternative came in July when the European Securities and Markets Authority (ESMA) said that out of the six non-EU countries it had assessed, Jersey was one of only two jurisdictions deemed ready to seek authorisation for such a passport. To these two options can be added a third for Jersey funds that market outside the EU or whose EU marketing has been completed. The Island’s fund managers can choose to meet EU requirements under AIFMD, while at the same time serving the rest of the world in a lower-cost non-AIFMD environment. This allows them to continue with business as usual while assessing the full impact of AIFMD. Jersey Finance believes that the availability of these three options will place Jersey at the forefront as a centre for alternative investment funds wishing to market to European investors. We have noted that Jersey funds offering alternative asset classes are already growing strongly, at 15% a year, with growth of 31% in hedge funds and 16% in real estate.

which has created a demand for alternative sources of funding. McKinsey, the global management consultancy, recently estimated that the funding gap may be over €1 trillion, and the European Commission has also noted the appetite for capital market financing to support economic growth. Some European financial centres have launched special regimes to permit Loan Origination Funds, which would allow investors to meet the shortfall in bank funding. Jersey Finance investigated whether there was scope for Jersey to launch a similar initiative, but concluded that this type of business was already possible on the Island, needing no specific regulatory regime. A brochure was prepared to draw attention to this possibility, setting out the requirements that the Jersey Financial Services Commission (JFSC) would be likely to demand to authorise such a fund.

Technical Developments The AIFMD working group consisting of representatives from the Government of Jersey, the JFSC and Industry continued to make improvements to Jersey’s AIFMD framework throughout 2015 and will continue to do so in 2016. In March 2015 the AIFMD group was the driving force behind exempting self-managed collective investment funds (CIFs) from double regulation, an important change welcomed specifically for listed funds work.

£250

VALUE (£ BILLIONS)

AIFMD

£200 £150 £100 £50 £0

SEP-14

DEC-14

MAR-15

PERIOD

JUN-15

Loan Origination Funds With stricter global and national banking regulation following the global financial crisis, a shortage of bank finance has emerged

126

Unregulated Funds

Net Asset Value of Funds in Jersey

1,311 Regulated Funds

SEP-15


P14 | JERSEY FINANCE ANNUAL REVIEW 2015

Private Weal Jersey’s increasing attraction as a centre for private client and estate planning work led to a surge in employment in the sector in 2015. Government of Jersey figures showed that of the 250 extra jobs created in the finance industry in 2015 to the end of June, more than 200 were in trust and company administration, and legal services. With more than 50 years of expertise in private wealth management, trusts, foundations and estate and succession planning, the Island has established a leadership position amongst IFCs. This was reflected in the record turn out at May’s flagship annual Private Client Conference in London. More than 400 senior private client, tax, trust and wealth management professionals heard Pascal Saint-Amans, Director of the OECD Centre for Tax Policy and Administration, praise the ‘tremendous job’ Jersey had done in contributing to the international tax agenda. ‘It is important to recognise the role of small jurisdictions in the work we are doing,’ he said. The OECD aimed to deliver a level playing field for all jurisdictions, he added, with Jersey ‘one of the best and first in grabbing this opportunity to shape the agenda’. In addition to our own conference, Jersey Finance was involved in numerous other private wealth events around the world, including

2015 Private Wealth in numbers

the Global Wealth Management Conclave organised by India Inc in April, the second WealthBriefing GCC Region Summit held in Dubai in May, and the fourth Adam Smith Conference on Private Investor: Russia & CIS in October. Attendance at our events has been boosted by the use of a much more data-driven approach in our customer relationship management (CRM) strategy. This is part of our 2016-19 business plan, and has led to attendance increasing by as much as 32%.

Jersey’s Reputation Reputation management always emerges as a priority for Jersey Finance Members in our surveys. We are now using paidfor-placement campaigns aimed at key UK and international professionals by providing articles which aim to dispel some of the misconceptions surrounding IFCs to relevant publications. A good example was a piece by Geoff Cook placed in Trusts & Trustees, debunking claims by NGOs that IFCs encourage ‘tax dodging’ and illicit financial flows which are responsible for poverty and inadequate public services in developing countries. He pointed out that data purporting to show the scale of such activities has been challenged by academic studies and independent research, including some commissioned by Jersey Finance on foreign direct investment and the role that IFCs can play in developing regions such as Africa. He called for a dialogue over these issues to tackle the very real and serious problems faced by developing countries.

273

Jersey Foundations


JERSEY FINANCE ANNUAL REVIEW 2015 | P15

lth Trust Law

Philanthropy/Foundations

The Government of Jersey is preparing to consult on new proposals to amend the Trusts (Jersey) Law 1984 which has been subject to amendment on only six occasions in the 31 years since it was enacted. Previous amendments have included innovations such as trusts with unlimited duration, the ability for settlors to reserve powers and the introduction of non-charitable purpose trusts. The latest amendment in 2013 codified the law on mistake and the ‘rule in Hastings-Bass’, providing trustees and beneficiaries with a welcome alternative to litigation in situations of inadvertent error. This provided Jersey trusts with a tangible advantage over those governed by the laws of other jurisdictions, and we are now seeing the amendment being duplicated across competitor jurisdictions.

The growth in the number of Jersey Foundations continued in 2015, with another 28 being formed. This brought the total formed since the legislation was introduced to 273, more than double the total in the other Crown Dependencies combined. Foundations continue to be used for commercial purposes, holding high value or luxury assets, wealth management by ultra-high-net-worth families and for philanthropic or charitable purposes.

For two years, the Jersey Finance Trusts Working Group has been considering a number of topics and areas where amendments might usefully be considered, such as beneficiaries’ rights to information and mechanisms designed to allow the variation of trusts. They have now passed their conclusions to the Government of Jersey for consideration and Jersey Finance will continue to work with the Government on these and other proposals through the public consultation process and, ultimately, the next legislative amendment. The wealth management industry is increasingly global and wealth is growing, especially in newer markets such as the Middle East, Africa and Asia-Pacific. There is also a global drive for greater transparency and a concerted move to crack down on tax evasion and fraud across the world which present a real opportunity for well-regulated jurisdictions.

1,267 Members of the Society of Trust and Estate Practitioners

A couple of small changes were made to the foundations proposition in 2015, in the form of some miscellaneous amendments to improve the flexibility of the product. Also the other Crown Dependencies were added to the lists of countries from which foundations can migrate and merge with Jersey Foundations (and vice versa). With a growing interest in philanthropy amongst wealthy people, Jersey Finance has been preparing materials to promote the Island as a philanthropic centre. These include articles and presentations to raise awareness of Jersey’s offering and the finance industry’s reputation as a secure and trustworthy host for such activities. In addition to increasing the inflow of business and use of the structures we offer, we hope to stimulate discussions about trends in philanthropy. This will be assisted by the anticipated implementation in 2016 of Jersey’s new Charities Law and the appointment of a Jersey Charity Commissioner.

857

Regulated Trust Company Business Licences


P16 | JERSEY FINANCE ANNUAL REVIEW 2015

Capital Mark Jersey has retained its position as the jurisdiction of choice for corporate entities seeking to list, with the greatest number of FTSE 100 companies registered outside the UK.

The Island is home to 41 companies listed on the main London Stock Exchange market, 54 quoted on AIM and one on the Specialist Fund Market. The remaining 12 are listed on Euronext Amsterdam, the stock exchanges in Luxembourg, Hong Kong and Toronto, the New York Stock Exchange and NASDAQ. The total market capitalisation of the 108 companies was £159 billion at the end of September 2015, with the 96 quoted in London valued at almost £116 billion. Notable names of Jersey Holding Companies include Glencore Xstrata, one of the world’s largest global diversified natural resource companies which is listed in London and Hong Kong. Lydian International Limited, an emerging gold developer, is listed in Toronto and Randgold Resources, listed in London and New York, is a gold mining business operating mainly in Mali. Kennedy Wilson Europe is using Jersey for a €2bn medium-term note programme, following the use of a Jersey Holding Company as its equity listing vehicle for its 2014 London IPO. Recent examples of Jersey Holding Companies as listing vehicles include Integrated Diagnostic Holdings (IDH), a diagnostic services provider based in Egypt which listed on the London Stock Exchange on 11 May 2015 with a market capitalisation of over

2015 Capital Markets in numbers

US$600 million. MayAir Group (MAYA), a Malaysia-based provider of air filtration equipment and clean air solutions, joined AIM on 7 May 2015. In July, Jersey Finance issued a fact sheet to promote further use of Jersey Holding Companies as Listing Vehicles. It pointed out that a Jersey Public Holding Company is comparable to a UK PLC: its shares can be traded directly through CREST, the UK share settlement system, through three CREST-enabled share registrars. Tax advantages include 0% corporation tax, with dividends, interest and royalties free of withholding tax, and shares in Jersey Holding Companies free of stamp duty in Jersey. More generally, the attractiveness of Jersey for companies continues to grow. Over 700 new companies were incorporated during the quarter up to September, bringing the total number of Jersey companies to the highest level since the second quarter of 2009. Work commenced in 2015 on the Demerger Regulation, anticipated by the ‘Companies 11’ amendments in 2014. Once enacted, this will further increase the flexibility and international appeal of the Jersey company. The process to consider the prospectus requirements and further amendments to the Companies Law itself is set to commence in early 2016.

108

Companies Listed Worldwide

JERSEY


JERSEY FINANCE ANNUAL REVIEW 2015 | P17

kets 54 41 12 1 Quoted on AIM

Listed on the main London Stock Exchange

Listed on other leading international exchanges

108

717

Listed on the Specialist Fund Market

96

Companies Listed Worldwide

Incorporated during the quarter up to September 2015

Quoted in London valued at almost £116 billion.

Notable names of Jersey Holding Companies include

Glencore Xstrata one of the world’s largest global diversified natural resource companies

£159bn Market Capitalisation

Lydian International Limited an emerging gold developer

Kennedy Wilson Europe is using Jersey for a €2bn Medium-Term Note programme

No.1

in Non-UK Companies on the FTSE 100


P18 | JERSEY FINANCE ANNUAL REVIEW 2015

Market Deve With the end approaching of the threeyear market development programme devised in 2013, 2015 saw the completion of Jersey Financeâ&#x20AC;&#x2122;s restructuring of its international development activities focused on four market areas and added one new market. Top growth priorities remain the key frontier markets of the Gulf states and Saudi Arabia, followed by the future options markets of India and Greater China. Next are the traditional markets of the UK and Western Europe which will grow more slowly, but still account for a large share of the assets and deposits in Jersey. Finally, there are the secondary frontier markets which look set to be the next group of growth economies: South Africa, Nigeria and Kenya. We continue to take a flexible approach in the light of economic, financial and geopolitical developments. Resources targeting Russia and the Commonwealth of Independent States were put on hold as the economic sanctions imposed on Russia by the west curbed growth. Likewise, Brazil, where the challenges facing the economy and the Government have led to a reassessment of its previously positive prospects. However, the long-term outlook of both markets will recover and we will continue to monitor and maintain good relationships with key contacts.

TRADITIONAL MARKETS

FUTURE OPTIONS

UK, Western Europe

India, China

Representation in London

2015 Business Development in numbers

China - Office in Hong Kong, Shanghai Launchpad India - Representation in New Delhi and Mumbai

986

Gatekeeper Meetings


JERSEY FINANCE ANNUAL REVIEW 2015 | P19

elopment Our new target market is North America, a region that has shown growing interest in Jersey’s evolving funds regime as the EU implements the provisions of the AIFMD. The core focus for our programme there is on private equity and real estate, and we have supported events in the region, including those organised by the Financial Times and the Alternative Investment Managers Association (AIMA). A strategic objective in our 2016-19 market development programme will be to further develop the ‘Top 100’ approach to market, which encourages business development teams to focus on their top 100 contacts who will generate the most value for Jersey. The wider community in each region is targeted by other means such as email, events, web content, social media and print campaigns to make them familiar with Jersey Finance’s messages. As the details below indicate, we have already adopted a new data-led strategy for market development programmes which has greatly improved our reach of message.

KEY FRONTIER MARKETS

SECONDARY FRONTIER MARKETS

UAE, Saudi Arabia

Nigeria, Kenya, South Africa, North America

UAE - Office in Dubai Saudi Arabia - Representation via UAE based BDD

278

Inward Investment Meetings

Nigeria - Representation via UK based BDD Kenya - Representation via UK based BDD South Africa - Representation via UK based BDD North America - Fly in model

379 Member Meetings


P20 | JERSEY FINANCE ANNUAL REVIEW 2015

Market Deve TRADITIONAL MARKETS

UK, Western Europe We continue to devote significant resources to safeguarding our traditional regions for banking, funds, private wealth and capital markets, which still account for the largest share of assets and deposits in Jersey. Marketing events and sponsorship programmes have played an increasing role in raising Jersey’s profile in the UK. Our London-based Business Development Director has focused on developing relationships with key trade associations and gatekeepers who can direct business to the Island. Our two flagship London conferences that promote the funds and private wealth sectors again attracted record attendances in 2015, 20% up year-on-year. A first for Jersey Finance in 2015 was our Swiss roadshow in the second half of the year, to raise the Island’s profile in funds. This followed the signing by the JFSC and Switzerland’s FINMA of a Memorandum of Understanding on cooperation over the supervision of fund managers.

KEY FRONTIER MARKETS

UAE, Saudi Arabia, Qatar, Oman, Kuwait, Bahrain Our Business Development Director in the Gulf, who is based in Dubai, has been leading our increased focus on Saudi Arabia. We had our first networking event in the region which was jointly hosted with the British Ambassador, and we have built up a regional database of more than 450 contacts, which has helped us refine our ‘Top 100’ strategy. We again staged a roadshow programme in the region, adding Abu Dhabi and Saudi Arabia to the Dubai event where attendance was up 27% on 2014. Speakers, panellists and roundtable participants highlighted Jersey’s already strong position in facilitating Middle Eastern private wealth management and investment ambitions and capturing new wealth from the Gulf.


JERSEY FINANCE ANNUAL REVIEW 2015 | P21

elopment FUTURE OPTIONS

Greater China, India

SECONDARY FRONTIER MARKETS

Nigeria, Kenya, South Africa The publication in 2014 of the Jersey’s Value to Africa report has provided an excellent launching point for increased activity in Africa, the world’s fastest growing region where a group of economies are poised to deliver substantial economic growth. Opportunities to invest in Africa and the positive role of IFCs in the process were highlighted in June at an African Investment Seminar in London. Speakers included executives from finance firms focused on Africa. In the first quarter of 2015, we appointed Allan Wood, an experienced international banker, as our first Business Development Director for emerging markets. Meanwhile, the Government of Jersey has been finalising tax information exchange agreements and double taxation agreements with a range of African countries.

For the second year running, Jersey Finance staged a series of Asia roadshows in November, focusing on the Island’s strengths in funds, capital markets and private wealth. In addition to Hong Kong, Kuala Lumpur and Singapore, the programme was expanded to include Shanghai. The eight events featured Joe Moynihan, the Government of Jersey’s Director of Financial Services, and Richard Corrigan, Deputy Chief Executive of Jersey Finance. Other speakers and panellists included experts from Jersey and the Far East, with discussion of how Asian investors with global ambitions can access Western markets through Jersey. Jersey Finance held cocktail receptions in Shanghai and Hong Kong for Senator Ian Gorst, the Island’s Chief Minister, and the British Consul General. Over 480 new qualified contacts were added to the regional database as a result of various business development activities in the region. Website traffic from the Hong Kong area was up 15%, Kuala Lumpur by 61% and Africa by 91% year-on-year. We are continuing to engage with India, where there has been growth in private wealth structuring in Jersey, and an increased use of Jersey trusts for Indian domestic wealth. Other new business included the use of Jersey by a major real estate investor.


P22 | JERSEY FINANCE ANNUAL REVIEW 2015

Transparenc & Taxation International Regulation Inter-Governmental Agreements (IGAs) are creating legal frameworks to improve international tax compliance through domestic reporting and automatic exchange of information. A landmark was reached in 2015 with the launch of the reporting requirements for the US Foreign Account Tax Compliance Act (FATCA), the first such IGA. The final step needed for the smooth introduction of the rules was the roll-out at the start of the year of a platform that enables financial institutions to submit the information required by FATCA. Also in October, the OECD released three new reports to help jurisdictions and financial institutions implement the Common Reporting Standard (CRS), the global standard for automatic exchange of financial account information. One of these reviewed the wealth of practical experience provided by Jersey and the other 46 countries which have already introduced voluntary disclosure programmes. With the first exchanges starting in 2017-18, the OECD urged prompt action by other jurisdictions to develop voluntary compliance strategies that encourage non-compliant taxpayers to come forward.

Common Reporting Standard Jersey committed as an early adopter of the CRS

Work has been continuing on the periodic assessment of Jersey’s compliance with international standards to counter money-laundering and terrorist financing, as required by the Financial Action Task Force. MONEYVAL, a body of the Council of Europe, began work in January and a lot of effort has been put into the assessment by the Government of Jersey, Industry and the regulator. It is understood that the exercise is making good progress, with the final report going to the MONEYVAL plenary in December, and the findings expected to be published early in 2016.

Base Erosion & Profit Shifting (BEPS) Progress was also made in 2015 on the OECD’s action plan on Base Erosion and Profit Shifting (BEPS), with the publication in October of its final package of 15 measures. Launched in 2013 in response to the G20 Leaders’ Summit in St Petersburg, the BEPS project was designed to ensure that profits are taxed where the economic activities generating them are performed. Corporate profits that ‘disappear’ or are artificially shifted to low/no tax environments create revenue losses conservatively estimated at

Beneficial Ownership Jersey continues to promote its model for collection of beneficial ownership information

JERSEY


JERSEY FINANCE ANNUAL REVIEW 2015 | P23

cy The measures centre on three fundamental pillars: US$100-250 billion annually, between 4% and 10% of global corporate income tax revenues. While the reports are dubbed ‘final’, there is further work to be done on a number of matters, most notably investment funds. But countries will be encouraged to sign up for a multilateral document that incorporates tax treaty-related BEPS measures into existing Double Taxation Agreements (DTAs). Jersey Finance has been fully supportive of the OECD’s BEPS programme. We recognise that for tax to be levied where it is properly due, countries need to have the information required to help them with their tax assessments. Jersey’s commitment to the transparency principles central to the current G20, OECD and EU tax initiatives aligns us with this requirement. With relatively few DTAs, Jersey is not typically used for profit-sharing and transfer pricing to the extent experienced by some other jurisdictions. Indeed, the Island prides itself as being an IFC of substance, and we believe that BEPS could bring opportunities.

EUSTD

Jersey has implemented ‘dovetailed’ changes to allow for continued automatic information exchange with EU member states

1

Introducing coherence in the domestic rules that affect cross-border activities.

2

Reinforcing substance requirements in existing international standards so that taxation is aligned with the location of economic activity and value creation.

3

Improved transparency, as well as certainty for businesses and governments.

OECD

Jersey has ratified the OECD Convention on Mutual Administrative Assistance in Tax Matters


P24 | JERSEY FINANCE ANNUAL REVIEW 2015

Transparenc & Taxation Public Registries of Beneficial Ownership

The Directive also requires the collection of trust data in certain specific circumstances. Jersey awaits the detail and interpretation of the directive on these and other matters.

The UK Government is forging ahead with the creation of a public register of corporate beneficial ownership for UK incorporated companies, a measure advocated by David Cameron at the G8 Summit in 2013. In June 2015, the Department of Business, Innovation and Skills (BIS) issued a consultation paper on regulations for the new People with Significant Control (PSC) register. The intention is that companies will have to hold their own PSC register from April 2016, and that this will be filed at Companies House from 30 June 2016. Significant control means individuals with an interest of 25% of the voting rights or who otherwise control the management of the company.

The UK has encouraged Crown Dependencies and Overseas Territories to follow its example by creating public registers of beneficial ownership. However, Jersey Finance believes that while law enforcement agencies and tax agencies should have access to information relevant to their domestic responsibilities, individuals have a right to compliant confidentiality. Wealthy individuals in many parts of the world will want details of their wealth to remain private to avoid exposing them to undue risk of kidnapping or extortion. There are also many valid reasons why an investor or business would wish to keep some types of information confidential, such as business plans, trade secrets and strategic decisions.

Meanwhile the EU’s Fourth Money-Laundering Directive, which became law in June, requires member states to set up central registers to record the ultimate beneficial owners of companies. The registers will be accessible by ‘authorities’ within each country, to ‘obliged entities’ such as banks doing due diligence into customers, and to such others who can demonstrate a ‘legitimate interest’ in gaining access to the information.

FATCA: US & UK Jersey worked with US and UK authorities to agree mutually acceptable tax reporting measures

Making Jersey’s beneficial ownership information public would drive investment away from the UK. Our research indicates that should a public register of beneficial ownership be introduced in Jersey, our membership base would expect to see a reduction in business of, on average, 27%. This could reduce the amount being invested in the UK through Jersey by as much as £125 billion, based on the

Abusive Tax Schemes Package of measures introduced reinforcing that Jersey does not welcome abusive tax structures


JERSEY FINANCE ANNUAL REVIEW 2015 | P25

cy Capital Economics estimates of the total UK inward investment flows that come via Jersey. In light of this, we have proposed that Jersey retains its existing model, which has captured beneficial ownership information on a corporate registry since 1999 and made it available to law enforcement agencies and competent authorities. The JFSC regularly undertakes rigorous on-site examinations of businesses to assess compliance. In the same way that we entrust criminal investigations to public bodies, we should trust financial crime agencies to make appropriate use of the increasing amounts of data provided by existing information exchange agreements. It was therefore gratifying to note that the G20 rejected calls for mandatory central registers (whether public or not) at the Brisbane Summit in 2014. It endorsed the Financial Action Task Force’s recently reconfirmed approach of ensuring that the true owners of entities are properly and accurately identified, that the information is readily accessible, and that it can be exchanged between governments rapidly and without undue difficulty. However, Jersey Finance is following this issue closely, and using every opportunity to reiterate that the Jersey model fully achieves those objectives.

38

Tax Information Exchange Agreements (TIEAs) signed to date

Abusive Tax Schemes In last year’s review, we welcomed the Government of Jersey’s measures to crack down on abusive tax regimes, with financial service providers expected to check whether any new business will finance such practices. The new measures, which will be monitored by the JFSC, came into effect in October 2014. We issued guidance notes to Members which they were expected to comply with, but this year we have taken a further step forward by requiring them to read the notes before they renew their membership. While we believe in tax competition, we do not support the use of abusive tax schemes designed to frustrate the will of national parliaments.

OECD

Jersey’s membership status of the OECD officially confirmed


P26 | JERSEY FINANCE ANNUAL REVIEW 2015

Members’ Feedback

KPIs taken from our 2015 Member survey

Jersey Finance commissioned Ipsos MORI to survey its Members in order to measure their opinions and awareness of the organisation and our competitors, as well as gathering feedback on our activities. The survey found that managing the reputation of Jersey was the most important area of our work, closely followed by promotion of the Island’s finance industry. Jersey Finance was seen as an excellent performer on all the key measures, with a clear lead over competitor organisations in other IFCs. The majority of Members (67% ) thought Jersey Finance was performing very well on reputation management, while 75% rated very highly our performance in presenting a positive view of the Island’s finance industry locally and overseas. More than half the Members who took part in the survey also said market development was a priority, seeing the expansion of financial services and new specialisms as key opportunities for Jersey as an IFC. Introducing activities, focused on small

and medium-sized member firms, was seen as an opportunity for Jersey Finance, as well as focusing more on key technical developments that affect businesses on the Island. Asked about the main challenges facing the industry, 47% highlighted regulations and international compliance. On communications, 90% of respondents had read or seen Jersey Finance advertising, a similar percentage had received a Jersey Finance newsletter and 80% had attended an event organised by us. Overall, 84% were happy with the interactions they had experienced. As always, we appreciate the time that Members have given to provide us with their opinions, which will inform our activities in 2016.


JERSEY FINANCE ANNUAL REVIEW 2015 | P27

Q

What are the opportunities for Jersey in relation to competitors?

“Skills-based opportunities. Professionalism and regulatory robustness. The amount of technical experts on the Island. Jersey is a place where it’s easy to do business.”

“Continuing to be a first mover in relation to transparency of the jurisdiction. Continuing to be well-resourced within the regulatory environment. Maintaining strong regulatory reputation. Maintaining diverse and well-resourced financial services industry in totality.”

Q

You said you would speak highly of Jersey Finance. Why is that?

“I think they are ahead of the curve, I understand what they are trying to do. I think they are good with their communications and they are inclusive.”

Q

What are the main challenges facing Jersey in relation to competitors?

“Maintaining our reputation. There is constant pressure on all small jurisdictions in terms of transparency and tax. This affects a number of our financial services businesses. If this is not managed to the best of our ability there may be a problem. Limited population and workforce is a challenge.”


P28 | JERSEY FINANCE ANNUAL REVIEW 2015

KPIs

Q

1%

81%

9%

Mainly unfavourable

Neither favourable nor unfavourable

56%

34%

Very favourable

1%

Mainly favourable

would speak highly about Jersey Finance

90%

How favourable or unfavourable is your overall opinion or impression of Jersey Finance?

13%

4%

Mainly Favourable Neither Very Favourable Nor Unfavourable Mainly Unfavourable

Be neutral have a positive towards them view of the organisation

Very Favourable

Q

To what extent would you speak highly or critically of Jersey Finance?

1% 4%

42% 13%

Be neutral towards them

Sp w

Speak highly of 40 without being

96%

%

Speak highly of them if asked

are familiar with Jersey Finance

40%

Speak highly of them if asked


JERSEY FINANCE ANNUAL REVIEW 2015 | P29

Q How well do you know Jersey Finance as an organisation?

Notification and assistance on legislative and regulatory consultation

Q

What would you say are Jersey Finance’s main areas of work?

4%

Know them very well

Q

Know them fairly well Know them just a little

52%

52%

Evidence-based advocacy

52%

Market development

78%

62%

Know them very well

Promotion of the sector

34%

Know them fairly well

78%

Reputation management

Know them just a little

How would you rate Jersey Finance’s communications on the following attributes?

44% g in

ap pe

al

ue n

56%

54%

55% 45%

46%

55% 43%

cy

58% 42%

Speak highly of them without being asked

Vi

su al

ly

Fr eq

42%

co nt en Pi t ap tc h pr e d op a ria t a te n le ve l Re su le bj va ec nt tm at te r

Be critical of them without being asked

■ NEUTRAL

Be critical of them if asked

of

4%

Be neutral towards them

ity

eutral ds them

1%

Speak highly of them if asked

ua l

3%

4%

Q

42%

peak highly of them without being asked

Speak highly of them without being asked

■ VERY GOOD

1%


P30 | JERSEY FINANCE ANNUAL REVIEW 2015 2013

Digital Deve Total marketing & campaign emails sent in 2015

7,

7.84%

444

Click to me

Increase in on-site interaction PDF downloads, clicking an email link, online booking etc

34% Average email open rate

57

Member updates covering news, views and developments from Jersey Finance

Year-on-year users increased

www.jersey

Worldwide users have increased UK

+8%

NIGERIA

+253%


JERSEY FINANCE ANNUAL REVIEW 2015 | P31

elopments

,500

Asia Roadshow social media marketing campaign

7.96%

k throughs ember sites

Increase in organic traffic

Total reach*

1,519,294

81%

d by +3.89%

*Reach is the total number of estimated Twitter and LinkedIn users that Jersey Finance content was delivered to

Increase in mobile visitors

yfinance.je

Number of page views increased

Member Directory

+11.34%

HONG KONG

INDIA

+25% UAE

+221%

SOUTH AFRICA

+60%

+15% MALAYSIA

+57%

Community News

+38.64%

Member News

+35.51%

Events

+21.49%


P32 | JERSEY FINANCE ANNUAL REVIEW 2015

Contact For more information about Jersey’s International Finance Centre, please visit: www.jerseyfinance.je www.linkedin.com/company/jersey-finance www.twitter.com/jerseyfinance www.youtube.com/jerseyfinance

Head Office

Hong Kong Office

Mumbai Office

Jersey Finance Limited 4th Floor, Sir Walter Raleigh House, 48-50 Esplanade, Jersey JE2 3QB Channel Islands T: +44 (0) 1534 836000 E: jersey@jerseyfinance.je

Room 5, 20th Floor, Central Tower, 28 Queen’s Road Central, Hong Kong T: +852 2159 9652 E: china@jerseyfinance.je

9SE, 9th Floor The Ruby, 29 Senapati Bapat Marg Dadar (West) Mumbai - 400028 T: +91 (0) 22 6716 1031 E: pankaj.jain@jerseyfinance.je

London Office 4th Floor, 2 Queen Anne’s Gate Buildings, Dartmouth Street, London SW1H 9BP T: +44 (0)207 808 1145 E: london@jerseyfinance.je

Shanghai Launchpad Unit 1708, Garden Square, 968 Beijing Road W, Shanghai 200040 T: +86 21 3100 7900 Ext.226 E: garry.zhao@jerseyfinance.je

Abu Dhabi Office Regus Sowwah Square, 34th Floor, Al Maqam Tower, Abu Dhabi, UAE T: + 971 (0)2 418 7533 E: gary.hales@jerseyfinance.je

Dubai Office

New Delhi Office (Sannam S4) 3rd Floor, Devika Tower, 6, Nehru Place, New Delhi - 110019 T: +91 (0)11 4212 4100 E: kapil.dua@jerseyfinance.je

Level 41, Emirates Towers, Dubai, UAE PO BOX 31303 T: +9714 (0)431 99923 F: +9714 (0)431 97474 E: gary.hales@jerseyfinance.je E: richard.nunn@jerseyfinance.je

Useful Network of Contacts Jersey Finance Members www.jerseyfinance.je/member-directory

Jersey Association of Trust Companies www.jatco.org

Jersey Chamber of Commerce www.jerseychamber.com

The Government of Jersey www.gov.je

Law Society of Jersey www.jerseylawsociety.je

Chartered Institute of Marketing www.cimjersey.com

Jersey Financial Services Commission www.jerseyfsc.org

Jersey Bankers’ Association www.jerseybankersassociation.com

Locate Jersey www.locatejersey.com

Jersey Society of Chartered and Certified Accountants www.jscca.org

Jersey Funds Association www.jerseyfunds.org

Jersey International Insurance Association www.jerseyiia.org


www.jerseyfinance.je

Jersey Finance Annual Review 2015  
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