We are cautiously optimistic about Jersey's future and the
role it plays as a key functionary in international capital
Jersey's position in the financial services industry remains
unchanged following the 52% vote for Brexit. Jersey has always been
a third country to the European Union for the purposes of financial
services, and its role as a well-regulated and highly-regarded
centre provides much-needed reassurance to investors, their
advisers and the asset management community.
The island's finance industry facilitates estimated
investment flows into the UK and the rest of the EU of
Ł800bn.1 Jersey's relationship with the
EU is based upon Protocol 3 of the UK's Treaty of Accession,
which is dependent on the UK's EU membership. However, the
provision of financial services into Europe falls outside Protocol
3 and Jersey is treated as a "third country"
jurisdiction. Consequently, Jersey has negotiated market access on
a case-by-case basis.
Jersey's Government believes it's in the island's
best interest to maintain the substance of its existing
relationship with the EU, as set out in Protocol 3, and is working
to secure this relationship. Jersey's constitutional
relationship with the UK is not affected by the UK's decision
to leave the EU. And Jersey maintains strong access to European
markets through broad and robust third country agreements. These
arrangements also remain unaffected.
If the UK does emerge as a stronger, more agile global
competitor post-Brexit, Jersey could stand to benefit from capital
flows both into and out of the UK.
As (at the time of publishing) Article 50 of the Lisbon Treaty
is yet to be invoked, and withdrawal negotiations would take place
over two years, it will be some time before we know what shape the
future UK-EU relationship will take. Whilst we experience this
period of disruption and uncertainty, we are cautiously optimistic
about Jersey's future and the role it plays as a key
functionary in international capital flows.
1 source: Jersey Finance
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