Jersey brings stability to funds industry
With the UK's departure from the EU, the dynamic and context in which Jersey operates has significantly changed it has been highlighted.
Speaking at the Jersey Finance Domiciliation and Brexit Update talk yesterday, Tom Le Feuvre, Government of Jersey, said: "The way in which member states in the EU look at Jersey has changed. However, in other ways, Jersey brings a level of stability to the funds industry that is valued very well across the board.”
From Jersey's point of view, there is still a desire to engage with Europe constructively. As Tim Morgan chair of the Jersey Funds Association, said: "There has been a 12% rise in managers marketing into the EU in the last few months, so clearly the European element matters a lot."
Jersey has always had the advantage of being a third country, meaning there was always a basic presumption that it could continue as is following Brexit. There is, however "a huge amount of work that goes on under the surface to keep engagement effective," Morgan explained.
The recent tax and regulatory discussions and the AIFMD consultation last week are a good example of this.
"A significant amount of effort has been put into making an economic substance regime work in Jersey over the last two years, which has been put together in consultation with the EU commission,” Morgan said.
Speaking on Jersey's position following last week's AIFMD review, James Silverston, director of financial services, Government of Jersey said: "There is nothing in it that needs fixing. A lot of our sponsors are saying with Brexit and Covid, there is enough on the industry's plate already. Any changes would be counter-productive, especially as the EU and the UK needs the alternative funding industry to be ready and able to step in and fund the post-Covid recovery."
Going forward, it will be business as usual for Jersey. “What remains important is that governments and the private equity industry continue to work together closely going forward,” Le Feuvre added.