GCTV: Jersey International Financial Centre

For its size the isle of jersey boasts incredible financial power an outgrowth of the islands status as an offshore haven but how does jersey and english-speaking isle off the coast of france compete with the cayman islands or even other british isles to attract hedge fund and asset managers for answers we turn to jeff cook the chief executive at jersey finance

We’ve been working very hard on what those kinds of phones need i think they need certainty in certainty of establishment in age speed speed to market and simplicity not a complicated operating environment so everything we’ve been doing over the last 18 months two years have been here to deliver those objectives so we’ve got a full suite of different fundraisings

Now from heavily regulated a retail type orientation to a middle ground or fast-track approvals but still regulated to an unregulated offering for very high value sophisticated investors so we really are trying to modernize your jurisdiction and meet the needs of potential or potential some managers are so as providers as far as a hedge fund community as a whole is

Concerned that we are interested attracting new jersey as fund managers are as asset managers our fiscal regime now is very attractive for fund managers you’re essentially on a 0% corporation tax regime and many of these folks tend to be high earners so from a high-value earning point of view we’ve got a very favorable but trans found in understandable tax regime

Unit starts at twenty percent with your certain bought the value level but over a point five minutes one percent and so it’s graduating it’s simple it’s not a sort of a special deal i’ll continued on this or that and we believe that for many european bastes the actual modular activities with the english language you’ve got an education system and environment feels

Too bit warmer a bit more attractive we would argue but it’s an easy place to transition to and it’s a welcoming place you know but a flexible regulator but as you’ve heard this evening with a strong reputation good strength and depth in our professional expertise our advisory firms and we’re welcoming / new entrants jersey has also looked for friends outside of

The united kingdom particularly in asia traditionally jersey was very much drawings business from the uk either domestically all through the international visitors cleared through london and that’s still extremely important to as we aren’t we continue to be totally committed to servicing that market but we are looking at market diversification we will have visited

China i think four times by the end of this year we’ve been to a hong kong to shanghai to beijing and what promoting our company formation and for listings capability out there we’ve been to india exploratory factor fine receive a very good welcome both in the funds user something the private client work that field and we’ve been actually active in the middle east

For about five years now so 20-plus jersey firms have representative offices or personal resident in the gcc countries so if you took our sort of value footprint and took currency as a proxy for diversification only about a third now the value in jerseys in sterling the other two-thirds and lots of other currencies and we have clients now in over 200 countries around

The world so we’ve in the last five years in particular and i guess the last two years in terms of acceleration we are diversifying and getting into emerging markets some of the bric countries but particularly asia middle east indians jersey has always resisted installing regulations as tight as other markets but can jersey maintain its laissez-faire attitude while

Regulators worldwide move to curb risky trading well our approach to regulation over recent years has been really to subscribe to international standards the highest international standards so in the funds world where subscribing members of iosco as a jurisdiction and we have worked very hard on corporate governance so we kind of feel our standards are pretty high

Already in terms of comparisons and prospered with the rest of the funds world cook did say however that new regulations are not inconceivable the kind of regulation that may come in i think might impinge much more on banking then perhaps directly on the funds area might have a second order effect on front i business and that could be about you know the degree to

Which risks it’s on your balance sheet the degree to which if you pass assets off your balance sheet you retain some kind of obligation or responsibility and to what extent i think we could see change there i think we could probably see change with the risk rating agencies and their relationships with investment houses in terms of rating rating funds rating desk

I’m that kind of thing i would expect the recent regulation at the area the speculation about short selling a moment there’s been short term prescriptive measures taken on short selling i’ll be surprised if they stick because you know interfering in markets with mechanisms prevent the use of legitimate tools could could have an unintended consequence it is having

A tool it’s not necessarily to us about things the deployment use of the tool that could be the issue so we will watch events carefully or watch the you approach to any regulatory changes they make the uk we already operate i would say to a good standard and if regulation comes in and have sensible structured appropriate then it more and likely we will add up to

If however we get things that look a little bureaucratic and are not really offering a great deal of additional best projection and then may well opted not to adopt measures in quite the same way as some of the larger onshore economies this is justin thompson with producer eric hornbeck reporting from london

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GCTV: Jersey International Financial Centre By globalcustodian