The Brexit negotiations will be monitored closely by Jersey
Finance, but they will not affect Jersey's position as an
international finance centre of excellence.
Today (Wednesday 29 March), the UK formally notified the
European Union of its intention to cease to be a member state, and
negotiations will now begin with an absolute deadline of 30 March
2019, when the UK will exit the union.
Regardless of the outcome of the negotiations, the ability of
Jersey's finance industry to access the European Union as a
third country will remain unchanged, and the UK remains
Jersey's largest trading partner for financial services, with
the importance of the relationship recently recognised in two UK
Geoff Cook, CEO, Jersey Finance, said: "There is clearly
uncertainty about the outcome of the Brexit negotiations, and what
the relationship between the UK and EU will look like in two
years' time, but for Jersey's financial services industry,
trade with the EU and UK is governed by bilateral agreements which
are unaffected by Brexit. Our access to European markets continues
under the same terms, and we continue to be a conduit for
investment into the UK and EU."
Last year, an independent report concluded that Jersey was a
conduit for €188 billion of foreign investment, and supported
almost 90,000 jobs, in the EU. It also found that Jersey was a
conduit for nearly £500 billion of foreign investment into
the UK, helping the UK to generate around £4.5 billion in tax
revenues each year and supporting 250,000 British jobs.
However, a decade ago Jersey's finance industry recognised
the importance of diversification, and began a strategy of
developing business revenue streams from the rest of the world, Mr
"Whilst we continued to nurture our traditional business
sources, and recognise that the UK will continue to be Jersey's
largest trading partner, we have also pushed out into growth
markets with the result that, today, half of the investment we
handle originates from outside of the UK time zone," he said.
"For both advanced and developing economies Jersey remains an
attractive jurisdiction and provides certain market access to both
Britain and the EU for financial services during the period of
"Fundamentally, we are in a strong position. Jersey is a
world-class international finance centre and uncertainty in the
European market has little impact on opportunities elsewhere.
Speech to Institute of Directors
On 28 March, Geoff Cook presented a speech to the Institute of
Diretors in which he set out Jersey Finance's views.
Now that the United Kingdom has served notice to leave the European Union under Article 50 of the Lisbon Treaty, managers of offshore funds have a clearer timetable for when Brexit will happen, with the UK scheduled to leave the EU in March 2019.
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