Today's investors and finance professionals looking
to set up funds and structures have numerous choices when deciding
on the jurisdiction to use. The following are some of the main
reasons why Jersey is a sensible choice.
Why offshore at all?
From a fund administration point of view, the jurisdiction
should provide a venue for the pooling of investments from various
parties who may be from a number of different jurisdictions
themselves. The aim is to provide a high quality administration
service without adding an additional layer of tax so that the
investment vehicle is taxed in the countries within which it
operates, and the investors are taxed in their country of
The jurisdiction should also provide flexibility and variety in
investment vehicles to allow investors to take advantage of the tax
incentives provided by various countries around the world in order
to encourage inward investment.
Jersey provides all of the above to the highest standards which
is why it was recently rated the number one offshore financial
centre by the Global Financial Centres Index, together with
numerous other awards from international organisations and
The Jersey Financial Services Commission ('JFSC')
ensures that Jersey's reputation for being a leading financial
service provider is maintained by having a comprehensive regulatory
Jersey has one of the highest rankings amongst all financial
centres (not just offshore) under the Financial Action Task Force
(FATF) 40+9 ratings with regard to anti-money laundering. Indeed it
scored higher in the recent round of International Monetary Fund
visits than many larger economies including the USA and United
This contradicts the idea that all offshore jurisdictions are
places where the bad money goes to hide.
The regulatory framework is flexible and designed to protect
investors whilst giving freedom to expert and institutional
investors to make investment decisions commensurate with their risk
Jersey is a Crown Dependency of the United Kingdom whose
legislative processes have developed over the last 800 years. As
such, it is not subject to political turmoil or upheaval and
professionals doing business can be confident in the long standing
and robust legal framework.
Jersey can provide a tax neutral jurisdiction. This is of
particular advantage where the investor profile in a structure is
multi-national which can lead to excessive complications and cost
burdens were it is necessary to work out double taxation reliefs
and other issues for all parties involved.
Jersey's Tax neutrality means that investors can, in certain
circumstances, take advantage of tax incentives by which various
countries encourage non-residents to invest in their economies.
Jersey has 22 Tax Information Exchange Agreements (TIEAs) with
major economies including the United Kingdom, the USA and France
with at least 17 more in the pipeline. This demonstrates the lead
role that Jersey plays in this area.
The Jersey finance sector
There are over 13,000 finance professionals working in Jersey
with service providers in all sectors of the industry. Jersey also
benefits from having the Channel Islands Stock Exchange for
situations where access to a greater number of investors is
A combination of numerous professional service providers,
providing bespoke solutions to complex financial structures and a
strong IT and support sector, enables Jersey to provide a high
standard of professional service to meet all the needs of a
sophisticated investor, a fund promoter or those merely looking for
a stable home for their hard earned assets.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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