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Members' News
Wednesday
29
April 2020

Apex broadens Jersey offering through launch of accounting, company secretarial and payroll services to local businesses


Apex Group Ltd. (“Apex”), a global financial services provider, today announced the expansion of subsidiary brand, Throgmorton, into Jersey to deliver business services, including accounting, company secretarial and payroll services to businesses operating locally in Jersey.

This development follows the Group’s previous Throgmorton expansion announcement, last month, through the unveiling of a newly established Throgmorton US office. Now it is focusing on building out its well-established Corporate Solutions offering in Jersey.

Having acquired UK based Throgmorton in June 2019 as part of a larger deal, which also saw the purchase of the Corporate Services and Private Client business from Link Asset Services, Apex is now building on Throgmorton’s existing UK reputation and capabilities through geographic expansion. The Throgmorton brand has been well-respected in the UK market for over 20 years and has enhanced the Group’s corporate solutions expertise with the addition of over 150+ experienced business services professionals.

With over 40 offices worldwide, the Group is leveraging its existing global footprint to support expansion plans and systematically add new Throgmorton businesses to its offices in key locations worldwide. The strategy is in line with the Group’s long standing philosophy of delivering local service to clients on a global scale and reinforces its unique single-source solution capabilities.

Matt Claxton, Global Head of Corporate Solutions, comments:

“This is another important moment for our corporate solutions capabilities. Jersey is a highly respected business jurisdiction and it therefore makes a lot of sense for us to ensure we have a suite of services available for businesses locally. We have ambitious expansion plans for the corporate solutions arm of the Apex Group and Throgmorton’s services are a core element of this service line. Being able to deliver business services to the local market sets us apart through an extensive range of solutions available for clients under one roof.”

Adam Hewitson, Head of Throgmorton, comments:

“It was only last month that we unveiled the first of a number of geographic expansions for the Throgmorton business including the US. Our parent company, Apex Group, has enabled us to increase our geographic footprint through the complementary service we can offer clients as part of the combined Group’s single-source solution. Jersey is an important market for us and our depth of experience supporting UK businesses over the last 20 years means this is natural progression and an immediate value-add for businesses on the Island.”

Apex Group Ltd. (“Apex”), a global financial services provider, today announced the expansion of subsidiary brand, Throgmorton, into Jersey to deliver business services, including accounting, company secretarial and payroll services to businesses operating locally in Jersey.

Industry News
Monday
6
April 2020

Covid-19: regular updates for members

The JFA is planning to issue regular updates to members over the coming weeks, to ensure as much information as possible from the regulator and government relating to the Covid-19 pandemic is issued to the membership during this challenging time.

Please find below some links to recent updates provided by JFSC that should provide you with details on issues that may affect your business:

https://www.jerseyfsc.org/news-and-events/more-information-for-businesses-in-response-to-covid-19/

https://www.jerseyfsc.org/news-and-events/jfsc-allows-more-time-for-meeting-deadlines-in-response-to-covid-19/

Links to Updates

Monday
30
March 2020

Closing Date Extended: Consultation Paper on Legislative Enhancements to the Investment Business Regime

In light of the current challenges and environment, the JFSC have decided to extend the closing date for the Investment Business Regime consultation to the 1st May. Please find the official Industry Update here.

The matters included in the consultation are important and warrant a full response from industry.

Closing date extended on consultation paper on legislative enhances to the investment business regime.

Industry News
Saturday
21
March 2020

Government Advice regarding Covid-19

Click here to read the attached media release which is now also on the gov.je website under the Coronavirus business info section https://www.gov.je/Health/Coronavirus/Pages/CoronavirusBusinessAdvice.aspx

Government advice to businesses surrounding Coronavirus

Industry News
Thursday
12
March 2020

Coronavirus & Economic Substance

Revenue Jersey has issued guidance with regards to the implications of Coronavirus for Economic Substance determinations and the impacts on tax residence of companies.  Click here to view release.

Commenting on the guidance, Tim Morgan, Chair of the JFA, said:

"The publication of this guidance is a welcome move and a proportionate response from Revenue Jersey that should provide fund managers with some reassurance and help ensure that they can continue to fulfil their substance obligations.'

Revenue Jersey issue guidance on Coronavirus & Economic Substance matters

JFA News
Friday
6
March 2020

Recent industry figures underline appeal of Jersey’s ecosystem for alternatives

Recent figures illustrating growth in Jersey’s funds industry are reflective of manager and investor confidence in Jersey and provide evidence that Jersey is right at the cutting edge in creating an ideal ecosystem for alternatives, according to the Chair of the Jersey Funds Association.

The latest figures for Jersey’s finance industry for the period ending 31 December 2019, collated by the Jersey Financial Services Commission (JFSC) and published in February, found that the net asset value of regulated funds under administration in Jersey grew by £25.8bn annually to stand at £345.7bn.  This growth was fueled by the alternatives sector, which rose by 6% over the year.In particular, private equity and venture capital increased by 19% in 2019 to stand at £136bn.

A deeper dive into those figures shows that, over the past five years, overall funds business in Jersey has grown by 51%, with private equity growing by more than 200%, and the value of real estate business growing by some 31%.

Those figures came shortly after the publication of the latest Monterey Jersey Fund Report, also published last month, which found that (as at June 2019) Jersey’s funds sector had achieved sustained annual growth over each of the past three years of 17%, again driven predominantly by private equity, venture capital, real estate and infrastructure funds.

That report also pointed to the growing global appeal of Jersey’s funds environment, with the value of Jersey-domiciled funds with US promoters rising by 20% year on year and funds with Japanese promoters doubling.

Tim Morgan,Chair, Jersey Funds Association, said: “From a funds industry perspective, this is all clear evidence that the focus we have placed on creating a perfect ecosystem for alternatives is hitting home amongst an increasingly diverse manager and investor base. The growth we are experiencing in private equity is impressive, but we’re seeing a strong performance in real estate, hedge and infrastructure too, and with good reason.

“Our ability to enable managers to distribute funds easily and cost-effectively into the EU through private placement and to the rest of the world outside of the constraints of AIFMD is really finding favour with managers, whilst our commitment to nurturing a substance-driven environment and our emphasis on governance, quality service and specific expertise is increasingly attractive.

“It’s particularly pleasing to see our Jersey Private Fund (JPF) product, the AUM figures for which are not included in the JFSC’s overall reported total values, continue to grow in popularity too and surpass the 300 mark, cementing its position as the go-to vehicle for sophisticated investors.”

At the end of last year,the JFA presented the findings of its annual members survey, which found that 85% of members were confident or very confident on their growth outlook.

Recent figures illustrating growth in Jersey’s funds industry are reflective of manager and investor confidence in Jersey and provide evidence that Jersey is right at the cutting edge in creating an ideal ecosystem for alternatives, according to the Chair of the Jersey Funds Association.

JFA News
Thursday
13
February 2020

Survey highlights positivity and opportunities for innovation

At the end of last year, we presented the findings of our second annual JFA members survey – a project that will be instrumental in informing the organisation’s and our industry’s direction and strategy this year and beyond.

Exploring key opportunities and issues for Jersey’s funds industry, the findings painted a generally positive picture as far as the sentiment of practitioners is concerned, and their perceptions of Jersey as a specialist alternative funds jurisdiction.

Amongst its key findings, for example, were that the industry’s approach to the key macro issues were largely optimistic. On Brexit and new economic substance rules, attitudes were balanced but largely positive, with over 80% of respondents saying Brexit would be neutral or increase business and around three quarters saying the same about substance rules.

Members were also very positive in terms of their overall growth outlook for the year ahead, with 84% saying they were confident or very confident of growth over the coming five years, a significant increase from last year.

These responses tally with the performance we saw in our industry over 2019, with NAV figures reaching new record highs of £342bn and private equity in particular being the stand out performer.

We’ve also seen asset managers continuing to commit to relocating to and establishing a presence in Jersey, which is a huge positive in light of the economic substance rules introduced last year, whilst the number of managers making use of private placement through Jersey and into the EU reflects the high regard in which Jersey is held for straightforward, seamless market access.

We really shouldn’t underestimate just how positive the outcome of Jersey’s work around the key issues such as Brexit and substance have been, or just how significant the recognition Jersey received from the EU almost exactly a year ago was for our industry – it signposted that, without doubt, as a jurisdiction we are serious about cooperation and global standards, and that has translated into good business flows.

The fact that practitioners are confident that Jersey can maintain this growth trajectory against what continues to be a challenging global environment is hugely encouraging.

Future

But that’s only really half the story, because what really stands out from the survey findings is that, despite being so positive about the future, our industry is not complacent and is pragmatic and ready to find ways to continue to enhance our proposition and hone our vision to provide the perfect ecosystem for cross border alternative funds – conscious that competition is very real and that the environment around us continues to change.

As an industry, we are very clear that maintaining growth requires a commitment to innovation, continuing to source the best talent, engaging with stakeholders, and differentiating ourselves through service quality, ease of doing business and stability.

In respect of technology, for instance, the survey indicated a clear trend, with over 56% of respondents saying that they had employed automated technology over the past year. That sort of investment is impressive, and will be pivotal in meeting the needs of alternative managers in the coming years in areas like cyber security, reporting and data management – around 95% of respondents said they considered automation will have a moderate or significant impact on them over the coming five years.

Meanwhile, there’s a real appetite to back product development – around three quarters of member firms said they would be willing to contribute ring-fenced fees to the regulator in order to fund product development. Enhancing onboarding procedures for new clients came out particularly strongly in this respect, rather than bringing new products to market – through automation and online portals, and by looking again at significant simplification and clarification of Jersey’s AML regime.

There were also a number of calls amongst respondents to look at ways to further enhance Jersey’s private placement regime and revisit third country passporting, whilst respondents also pointed to the need to be more proactive in meeting the demands of and responding to the needs of an industry that is increasingly engaging on the green finance and ESG agenda.

Outsourcing is another potentially exciting opportunity – around 40% of respondents said they saw outsourcing increasing over the coming three years. But we need to find ways to change perceptions of what outsourcing is all about and how, through embracing technology and understanding risk, we can meet outsourcing demands.

...members are unequivocal – it is simplicity, ease of doing business and clarity that will resonate with fund managers and investors...


The overwhelming message, though, was that our absolute focus should be on providing clarity and simplicity in everything that we do. In a hugely complex environment, our members are unequivocal – it is simplicity, ease of doing business and clarity that will resonate with fund managers and investors, and we should not lose sight of that.

Jersey is not a volume player; we are all about service quality and standards and those, the survey suggests, will be our differentiators.

Over the coming months, we’ll be working hard to engage with industry and key stakeholders both on and off island to respond to the challenges this survey has set out, capitalise on our core identified strengths and look at ways to innovate in order to enhance our funds ecosystem.

With almost 90% of firms indicating that they considered promoters, investors and gatekeepers would give Jersey a four or five star rating, we have a good basis to start from, and with the backing of a clearly very ambitious and focused industry, we are on a good path to maintain and improve on the success we saw in 2019.

At the end of last year, we presented the findings of our second annual JFA members survey