Jersey The International Finance Centre
Contents Description
Section
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A
BR I T I SH
CROWN
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I N T E R N AT I O N A L
F I NANCE CENTRE
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I N T E R N AT I O N A L
status
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Regulat i on
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BANK I NG
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PR I VATE
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FUNDS
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CAP I TAL
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I SLAM I C F I NANCE
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about
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USEFUL
&
DEPENDENCY
Conf i dent i al i ty
WEALTH
MARKETS
jersey jersey
f i nance CONTACTS
0001 JFL JERSEY’S FINANCIAL SERVICES
Jersey: A British Crown Dependency
MOSCOW 4hrs via London
ENGLAND
LONDON 45 mins
BRUSSELS 1h 1hr 10 mins
FRANKFURT 1hr 55 mins
FRANCE
Jersey is the largest of the Channel Islands and is situated only a short distance from the coast of northern France.
PARIS S 1hr 20 mins m GENEVA E & ZURICH 1hr 45 mins
It is in a central time zone that covers the closing of business in India and Greater China and the opening of business in the US. Jersey has been able to deliver the ideal business conditions for international finance bolstered by its unique constitutional position. Although Jersey’s allegiance is to the British Crown, it is not a part of the United Kingdom and is not represented in the British Houses of Parliament. The island’s domestic autonomy has been preserved via charter and convention through 800 years of English history. As a result of that unbroken constitutional position, Jersey proudly possesses its own democratically elected Parliament, which has consistently maintained responsibility for domestic affairs including fiscal matters. Jersey also operates its own judicial system, which is based on common law principles.
G Greater China
USA
Greenwich Mean Time India di
The largest number of finance industry professionals in any one offshore centre - almost 25% of Jersey’s total workforce.
Open for international business - its central time zone overlaps with both East and West time zones.
Operates its own judicial system, which is based on common law principles.
Has its own democratically elected Parliament.
Over 800 years of history has been independent and politically stable since 1204.
0003 JFL JERSEY’S FINANCIAL SERVICES
Jersey: The Leading International Finance Centre Jersey is one of the world’s leading international finance centres, with a breadth and depth to its range of products and services that many other competing jurisdictions find difficult to match. Based on the firm foundation of tax neutrality for over 50 years, Jersey has been attracting deposits and investments from institutions and private clients across the world, and its finance industry has evolved to keep pace with the demands of the global marketplace. This success has been built upon by the key combinations of political independence and economic stability, and a mature and respected legal and regulatory system. The wealth of experience and expertise offered by Jersey’s highly skilled financial service providers, combined with world-class infrastructure, gives an unparalleled welcome to businesses and investors alike.
Private Client
Infrastructure
Over 50 years of expertise in delivering private wealth management, trusts and estate and succession planning, and more recently foundations. Jersey’s trust law, established in 1984, is a model template for others, including the Hague International Convention on trusts.
Jersey offers a comprehensive and robust business and communication infrastructure.
Banking 40 banks accounting for £150.4bn deposited in Jersey*.
Funds 1,380 funds with £189.4bn asset value of funds under administration and £20.7bn funds under investment management, in Jersey*.
Capital Markets There are nearly 100 Jersey companies listed on worldwide stock exchanges from London to New York and a combined market capitalisation of over £139 billion, plus Jersey has the greatest number of FTSE 100 companies registered outside the UK**.
*As at 30 June 2012
** As at May 2012
Legal Jersey’s robust, modern and sophisticated legal framework is the source and foundation of Jersey’s finance industry.
Tax Jersey offers a tax-neutral environment, with no Capital Transfer Tax/Capital Gains Tax/Value Added Tax/ Withholding Taxes/Wealth Taxes, provides tax certainty and allows fiscally efficient cross-border investment.
Regulation Jersey adheres to international best practice and global cooperation to ensure first class standards continually appeal to the international marketplace.
Substance Jersey has a visible financial industry in its capital, St Helier, with the industry employing a quarter of the local workforce. In over five decades, Jersey has developed a breadth and depth to its range of products and services that competing jurisdictions find difficult to match.
0005 JFL JERSEY’S FINANCIAL SERVICES
International Status
London »
Jersey »
Jersey’s world-class reputation has been endorsed by independent bodies and institutions of the highest standards.
Hong Kong »
Abu Dhabi »
New Delhi »
Mumbai » • Rated by the IMF in 2009 as one of the best global international finance centres. •O ne of the first international finance centres to be placed on the OECD “white list” as having implemented internationally agreed tax standards in 2009. • I nvited by the French Chair of the Organisation for Economic Co-operation and Development (OECD) Peer Review Group to be Vice Chair alongside Japan, Singapore and India in 2009. •T he results of Jersey’s 2011 OECD Peer Review found “Jersey’s practices to date have demonstrated a responsive and cooperative approach”. • Received favourable British Crown Dependencies Review (conducted by UK government – Foot Review 2009). • Rated as the top Offshore Jurisdiction in the last seven GFCI Indices (Global Financial Centres Index). • Named Best International Finance Centre in the International Fund & Product Awards 2010, 2011 and 2012.
JERSEY DOES BUSINESS WITH OVER 200 COUNTRIES AND HAS A SPECIFIC FOCUS ON THE UK, EUROPE, ASIA, INDIA, AND THE GULF REGION LONDON
ABU DHABI
MUMBAI
NEW DELHI
HONG KONG
0007 JFL JERSEY’S FINANCIAL SERVICES
INTERNATIONAL AGREEMENTS
Regulation & Client Confidentiality The Jersey Financial Services Commission (JFSC) is a statutory body corporate, governed by a Board of Commissioners. It is responsible for the regulation, supervision and development of the financial services industry in Jersey. Through the JFSC, Jersey has been able to demonstrate its commitment to the highest global standards of financial regulation, which coexist with complete client confidentiality. www.jerseyfsc.org
Image courtesy of Danny Evans
GLOBAL RATING
as one of the best international finance centres by the International Monetary Fund (September 2009) along with the UK and US
The JFSC has MoUs either on a bilateral or multilateral basis with regulators in over 70 countries, including China, India, UAE, and Qatar
20 YEARS
Operating under a Fund Functionaries Supervision regime
FULLY ALIGNED with the highest standards of 3rd Anti-Money Laundering EU Directive
HIGH REGULATORY STANDARDS
resulting in no banking failures during the recent financial crisis
Jersey’s regulatory regime provides
DEVELOPMENT REGULATION SUPERVISION
THE FIRST
offshore finance centre to become a full signatory to the IOSCO Multilateral Treaty
Operating with a
DEPOSITOR COMPENSATION SCHEME
0009 JFL JERSEY’S FINANCIAL SERVICES
Banking Our banks attract clients from more than 200 countries and a sizeable share of Jersey’s total deposits are held in foreign currencies, a reflection of the international appeal of Jersey as a banking centre. Corporate and Institutional Banking
Banking and the Funds Sector
Jersey has become a leading finance centre in the provision of corporate banking services for multinational organisations, financial institutions, companies and firms with cross border interests and activities. For many corporate treasurers, institutional bankers and treasury specialists, fund promoters, brokers and other corporate financiers, Jersey represents an extension of the City of London.
Jersey’s banking sector has been able to provide services to support the fast-growing alternative investment funds industry, in particular the real estate, private equity and hedge fund markets, offering, for example, loan facilities to acquire assets and bridging facilities where appropriate.
Banking Services for International Investors Jersey is home to global banking organisations from the UK, Europe, North America, South Africa, Asia, and the Middle East. Many are listed in the top 20 by assets globally and deliver expertise in wealth management and financial planning.
ALL OUR BANKS ARE LISTED WITHIN THE GLOBAL
AND ATTRACT CLIENTS FROM OVER
TOP 500
200
O R I G I N
J E R S E Y ' S
B A N K
D E P O S I T S
As at 30 June 2012
4%
8%
North America
UK, Jersey & Guernsey
£67.1 billion
Europe (Non-EU Members)
£27.1 billion
Middle East
£19.4 billion
Europe (EU Members)
£13.6 billion
Other
£11.3 billion
North America
£6.1 billion
Far East
£5.9 billion
4% Far East
Other
Personal Banking – Including Expatriates and Professionals Working Overseas Offshore banking is an important consideration in assisting with wealth creation and preservation. The range of banking services provided from Jersey is extensive, including multi-currency banking, offshore mortgages, investment solutions and more.
O F
COUNTRIES WORLDWIDE
9% Europe (EU Members)
45%
UK, Jersey & Guernsey
13% Middle East
18% Europe (Non-EU Members)
0011 JFL JERSEY’S FINANCIAL SERVICES
Private Wealth Jersey is arguably the number one jurisdiction globally for trusts, with a pedigree in the field of administering trusts since the 1960s. Trusts in Jersey
The Jersey Foundation
Today, the emphasis has shifted away from the very simple trust and underlying company structure for UK families, to high value and more complex structures involving trusts, companies, limited partnerships and now foundations for international families.
The Jersey Foundation offers flexibility and provides more options to financial intermediaries advising highnet-worth clients and wealthy families worldwide.
In terms of the range of trust business undertaken, in addition to the establishment of “virtual” family offices for ultra-high-net-worth families, the industry in Jersey has led the way in the establishment of structures for corporates looking to put in place suitable and innovative arrangements for the rewarding of staff and to provide for their retirement.
The Jersey Foundation sits alongside existing vehicles such as companies, trusts and limited partnerships as one of a range of structures for wealth management. Importantly, the Jersey version is not a carbon copy of similar foundation vehicles available in other locations, partly because it embraces additional regulatory oversight. This is an important consideration for those planning to transfer existing foundations from another jurisdiction to a Jersey one.
Jersey has a broad range of trust service providers from large banks and independently owned companies to the smaller niche providers. Clients and trustees have access to legal support from experienced law firms that can advise on Jersey structures that best suit a client’s requirements.
As well as featuring some of the attractions of a trust vehicle, foundations also have some of the benefits of a company structure including separate legal status, which will enhance their appeal to private clients and their advisers in civil law jurisdictions who may not previously have considered Jersey as a location to place assets.
1,184 JERSEY STEP PROFESSIONALS
STEP Jersey is the largest branch of the society, representing 7% of the worldwide membership.
JERSEY HAS RETAINED ITS POSITION AS THE HIGHEST RATED OFFSHORE INTERNATIONAL FINANCE CENTRE and remains the only offshore jurisdiction to feature in the world’s top ten for private banking and wealth management, according to the latest Global Financial Centres Index (GFCI) released in September 2012.
No.1
Best International Finance Centre 2009/2010, Society of Trust & Estate Practitioners.
TRUSTS LAW The Trusts (Jersey) Law 1984 was the basis for the Hague Convention on trusts and has been used as a model in a number of other jurisdictions.
£189
Funds Jersey has been a prominent player in delivering fund services since the 1960s. The emphasis today has shifted towards funds for institutional, specialist and expert investors. Funds
2009
2010
2010
2011
2011
00
0 40 1,
3 1,
0 20 1,
60 £1
75 £1
NAV* Funds
+38% 11 20
10 20
11 20
9
10 20
0 20
08 20
07 20
6
Clients have access to legal support from experienced law firms that can advise on Jersey legal structures that will best-suit investment strategies and on seeking
Jersey funds may be established as companies, limited partnerships or unit trusts, and be open or closedended, providing significant flexibility for investor needs. Recent enhancements to Jersey’s company law have delivered a number of innovative features, providing even greater flexibility for funds structured as companies. Legislation allowing separate limited partnerships and incorporated limited partnerships was introduced in 2011, and in 2012 the Private Placement regime, aimed at professional and sophisticated investors - where speed to market is critical, was introduced.
Number of Funds 2009
0 20
Jersey has built up an experienced range of fund administrators, both as part of the services supplied by major custody banks and large specialist fund administration firms, and by boutique groups who can provide more bespoke services to meet individual investor needs.
NAV*ON 30 JUNE 2012
Total NAV* £ Billions
90 £1
Alternative investments have become increasingly popular as a way of reducing volatility in investment markets, and Jersey has attracted a significant number of venture capital, private equity, mezzanine, real estate, and hedge funds.
appropriate regulatory approvals. Lawyers work closely with counterparts in all of the world’s major centres including London, China, India, and the Gulf Region, to deliver structured products and specialist vehicles that meet a whole range of financial and investment objectives.
BILLION
0013 JFL JERSEY’S FINANCIAL SERVICES
Number of Funds
+44% 0 20 9
08 20
6
07 20
0 20
*NAV - Net Asset Value of Funds under Administration
0015 JFL JERSEY’S FINANCIAL SERVICES
Capital Markets The breadth and depth of services provided to the corporate sector from Jersey is one of the features that differentiates the island from some of its competitors. The jurisdiction has developed specialist expertise in supporting complex cross-border capital markets transactions structured by the world’s leading investment banks and professional services firms. In this regard, Jersey is recognised by many finance professionals as the preferred offshore partner to the City of London. Leading lawyers, accountants, bankers and other professionals within the largest workforce of any offshore finance centre, harness their skills to create sophisticated lending packages, structured finance vehicles and other bespoke products to support international capital markets activity and institutional funding. Major banking groups in Jersey provide global custody, treasury and money market services, as well as credit and cash management services to the trust and fund industries. There has been notable growth in securitisation and repackaging transactions and Jersey is acknowledged as one of the most important European centres for establishing employee share plans.
Jersey’s flexible company law is also gaining wide recognition on the international stage. New regulations implemented in 2011 simplified the process for mergers between Jersey companies and foreign ones, whilst approval for Jersey companies to be listed on the Hong Kong Stock Exchange in 2009 also widened Jersey’s appeal for corporate work. Furthermore, Jersey’s capabilities and experience in structured finance vehicles and other bespoke products to support international capital markets activity, and the jurisdiction’s partnership with the City of London, provides an excellent platform to develop Jersey as an offshore renminbi centre for renminbi bonds issuance using Jersey vehicles. The Channel Islands Stock Exchange, established in 1998, provides user-friendly listing rules, consistency of response, and swift efficient turnaround of documentation and competitive costs, adding to the armoury of services Jersey provides to the corporate sector.
89 COMPANIES LISTED on the worldwide stock exchanges from London to New York
£139 BILLION COMBINED MARKET CAPITALISATION
HIGHEST NUMBER OF FTSE 100 COMPANIES Registered outside of the United Kingdom
Now one of the
LEADING INTERNATIONAL FINANCE CENTRES FOR The following examples are leading multinational firms who have used Jersey Holding Companies as Listing Vehicles on international exchanges.
LISTING VEHICLES
Company
Description
Listing details
Value
Polyus Gold International Ltd
London’s largest premium listed gold producer, with the world’s third largest gold reserve
Jersey registered public company with Premium listing on the London Stock Exchange - 5 July, 2012
$9 billion
Naibu Global International Company plc
10th largest local sportswear brand in China
A newly incorporated Jersey public company for the existing Naibu group of companies and was listed on the AIM Market - 5 April, 2012
£68 million
Polymetal International plc
Polymetal is the largest Russian silver producer, and fifth largest in the world, and one of the largest gold producers in Russia and Kazakhstan
Jersey registered public company, as part of the FTSE 100 with Premium listing on the London Stock Exchange 12 December, 2011
£3.5 billion
Glencore International plc
Glencore is a leading global integrated producer and marketer of commodities, with worldwide activities
Jersey registered public company, largest capital raising by an international company in London, largest ever Premium listed IPO and the first company to enter the FTSE 100 at admission in 25 years on the London Stock Exchange - 24 May, 2011 with a secondary listing on the Hong Kong Stock Exchange
$59.2 billion
Genel Energy plc
Vallares, a ‘special purpose acquisition company’ backed by Tony Hayward and financiers Nat Rothschild, Julian Metherell and Tom Daniel
Jersey registered public company, in the FTSE 250, was one of the largest flotations on the London Stock Exchange in 2011 – 22 June, 2011
£1.35 billion
Previously known as Vallares plc and has since merged with Genel Energy International Ltd
0017 JFL JERSEY’S FINANCIAL SERVICES
Islamic Finance Jersey offers Islamic investors a flexible legal system, measured regulatory regime and a tax-neutral environment that positions Jersey as a leading provider of Islamic Financial services.
Islamic Asset Management and Fund Domiciliation
Corporate SPVs
Jersey’s funds sector is a leader of Islamic asset management. The jurisdiction is a preferred domicile for developed asset classes such as real estate, private equity, commodity and equity for Islamic fund mandates.
Jersey companies are governed by the provisions of the Companies (Jersey) Law 1991 as amended (the “Companies Law”). A Jersey company in a Shariah-compliant transaction can usually be incorporated very quickly. An urgent incorporation service allows a company to be incorporated in less than twenty-four hours, if all the required information is supplied.
Funds in Jersey are regulated depending on the type of investors the fund has and also whether or not it is closed or open-ended. Sophisticated or institutional investors are subject to a lighter regulatory framework, provided that the offer document makes the risks involved in the fund clear.
Jersey Special Purpose Vehicles (SPVs) and Sukuk Structures The Jersey finance industry has an established reputation for corporate structuring, and especially SPVs used for a variety of purposes. Historically, GCC Obligors would use a subsidiary company as an SPV. However, Shariah scholars have deemed this unacceptable and require that SPVs should be independent, enabling Jersey products to be used successfully with Sukuk structures. Jersey-based SPVs have been used in connection with a wide variety of Shariah-compliant Islamic capital markets transactions. These have included structures established for the purpose of making investments off-balance sheet and securitising assets. A variety of legal vehicles are available including:• a Jersey incorporated company which issues Sukuk • a limited partnership issuing partnership interests • a trust issuing units or trust interests or certificates
Regulatory Provisions Regulation of Sukuk issues and other Islamic products is provided by the Jersey Financial Services Commission (the “JFSC”). The JFSC is familiar with Islamic products and they are processed in the same manner as other securities, as Jersey’s laws are broad enough to permit the issue of all types of Islamic instruments.
Islamic Private Wealth Management - Waqf, Jersey Trusts and Foundations Due to the similarity of Waqfs and trusts, combined with Jersey’s international reputation for trust expertise, Jersey trusts appeal for generational wealth planning for multiple family groups and charitable/philanthropic institutions from the Gulf Region. The recently introduced Jersey Foundation offers high-net-worth individuals in the Gulf Region an attractive alternative to trusts for holding wealth with a structure designed to meet their needs and allow a greater degree of control than is possible with trusts.
0019 JFL ABOUT JERSEY FINANCE
About Jersey Finance
For more information about Jersey’s international finance centre, please visit: Greater China www.jerseyfinance.hk GCC
www.jerseyfinance.ae
India www.jerseyfinance.in
Jersey Finance promotes and leads the development of Jersey as an international finance centre. The organisation’s primary objective is to communicate the many factors that make Jersey a leading international finance centre, including the experience and expertise of its practitioners; its political, economic and fiscal stability; and its high level of regulation and security. It also actively represents the finance industry’s needs and concerns with regard to legislation, regulation and other key areas of innovation that can enhance Jersey’s product offering. Jersey engages regularly with key markets around the world. Jersey Finance has representative offices in Hong Kong, Abu Dhabi, Mumbai and Delhi that deliver a promotional programme of: • Networking events • Hosting business and government delegations from Jersey • Community of Interest groups for in-country practitioners who do business with Jersey • Introductory services for Jersey businesses new to the region
Jersey
www.jerseyfinance.je
Hong Kong Office
Mumbai Office
Head Office
Room 5, 20th Floor, Central Tower 28 Queen’s Road Central Central, Hong Kong T: +852 2159 9652 F: +852 2159 9688 E: china@jerseyfinance.je
B 205 Dynasty Business Park Andheri Kurla Road Andheri East Mumbai - 400093 India T: +91 (0)22 6742 3211 F: +91 (0)22 6742 3215 E: india@jerseyfinance.je
Gulf Region Office
New Delhi Office
Jersey Finance Limited 4th Floor, Sir Walter Raleigh House, 48-50 Esplanade, Jersey JE2 3QB Channel Islands T: +44 (0) 1534 836000 F: +44 (0) 1534 836001 E: jersey@jerseyfinance.je
Bainunah St 34, Al Bateen C6Tower PO Box 113100 Abu Dhabi UAE T: + 971 (0)2 406 9722 F: + 971 (0)2 406 9810 M: + 971 (0)50 10 96 715 E: abudhabi@jerseyfinance.je
3rd Floor, Devika Tower 6, Nehru Place New Delhi - 110019 T: +91 (0)11 4212 4100 F: +91 (0)11 4212 4199 E: india@jerseyfinance.je
0021 JFL ABOUT JERSEY FINANCE
Useful Network of Contacts
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Here are some useful contacts to help you find out more about Jersey as a leading international finance centre... 1
The States of Jersey (Jersey’s Government) Website: www.gov.je
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Jersey Financial Services Commission Website: www.jerseyfsc.org
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Law Society of Jersey
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Jersey Association of Trust Companies
Website: www.jerseylawsociety.je
Website: www.jatco.org
5
Jersey Bankers’ Association Website: www.jerseybankersassociation.com
6
Jersey Funds Association
7
Jersey Society of Chartered and Certified Accountants
8
Website: www.jerseyfunds.org
3
Website: www.jscca.org
8
Jersey Chamber of Commerce
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Chartered Institute of Marketing
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Website: www.jerseychamber.com
Website: www.cimjersey.com
Jersey Finance Members Website: www.jerseyfinance.je/members
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www.jerseyfinance.je