Members of the JFA’s Legal and Technical and Risk and Compliance Sub-Committees provided an update to professionals from across Jersey’s funds sector recently, at a briefing that explored the current landscape and some of the measures the industry is taking to maintain Jersey’s leading position as a centre for alternative investment funds.

Setting the scene, Joel Hernandez, Vice Chair of the JFA and Chair of the JFA Legal and Technical Sub-Committee, highlighted the pressure the funds industry has seen over the past year.

He also pointed out that competition between international finance centres remains intense and that Jersey's continued attractiveness as a fund domicile relies on it continuing to have jurisdictional stability, effective regulatory options and tax simplicity. Considerations such as service quality, talent retention, being digitally enabled and cost-effectiveness are key to differentiating Jersey from other IFCs in the coming years.

Joel also highlighted the progress the JFA has made in supporting changes across Jersey’s funds sector. Notably this has included the JFA's work with the Jersey Financial Services Commission (JFSC) and Jersey Finance on the recent updates to the Jersey Private Fund (JPF) Guide, as well as the recent JFSC guidance issued on the Tokenisation of Real-World-Assets.

Commenting on the event, Joel Hernandez, Vice Chair of JFA and Chair of the JFA Legal and Technical Sub-Committee, said:

“There’s no doubt the past year has been challenging for the  funds industry at large. Part of the JFA's role has been to help industry respond to these challenges by progressing developments through collective innovation with the JFSC and Jersey Finance."

“Despite the challenges, there is good reason for Jersey's funds industry to remain positive given its strong position. It's also pleasing to also see industry, government and the regulator collectively moving towards a "growth mindset" and a renewed focus on innovation. This will be critical to the future success of the Jersey funds industry."

Jon Stevens, Chair of the JFA Regulatory and Compliance Sub-Committee, added:

“Against that backdrop, asserting Jersey’s relevance as a robust, expert and progressive centre is critical. Offering regulatory choice, delivering on speed to market and tax simplicity with a familiar rule of law and good access to EU investor capital will all be important as we move into 2025 – all whilst maintaining a close eye on cost effectiveness.”

Attendees at this year’s Jersey Funds Association (JFA) Annual Dinner have helped raise a significant sum in aid of Kezia’s Fund as part of its ongoing commitment to support the local charity.

More than 400 people from across the industry attended this year’s Dinner, held at the Trinity Showground on 28^th June, between them helping to raise £14,420 towards Kezia’s Fund, thanks to a raffle held during the evening.

The fundraiser forms part of a three-year commitment on behalf of the JFA to support Kezia’s Fund, which is managed by the Jersey Community Foundation. The latest effort means that the JFA has helped raise almost £27,000 for the charity over the past two years, whilst it will also be helping at the Run for Kezia event in September this year and encouraging its members to participate.

Kezia’s Fund aims to support mental health among children and young people aged 5 to 25 and their families in Jersey; and provides grants and support to organisations that work to improve children and young people’s mental wellbeing. 

Michael Johnson, JFA Chair, said:

“I’m really pleased that the generosity of those who attended our Dinner this year have helped once again to raise such a good sum to support the work undertaken through Kezia’s Fund. These efforts form part of our wider commitment on behalf of the JFA to support the charity and the vital, amazing work it undertakes.”

Anna Terry, CEO of Jersey Community Foundation, added:

“The JFA has made a very welcome commitment to help continue the legacy of Kezia's Fund, including through this latest fundraising effort, and we are extremely grateful to all those who helped raise such a fantastic total once again this year. These substantial funds will go towards helping to address the critically important and prevalent issue of children and young people’s mental health in Jersey.”

Donations to Kezia’s Fund can be made at: www.kezias-fund.raisely.com.

Professionals from across Jersey’s growing funds industry came together last month to explore the key trends shaping the cross-border funds landscape and celebrate Jersey’s achievements over the past year.

More than 400 people from across the industry, including lawyers, fund administrators, fund managers, compliance experts and accountants as well as politicians and regulatory representatives, attended this year’s Jersey Funds Association (JFA) Annual Dinner, held at the Trinity Showground on 28^th June.

Speaking at the event, Michael Johnson, JFA Chair, told the audience that, in a challenging year globally for the sector, Jersey had held its position well. In particular, he pointed to the ongoing success of the Jersey Private Fund (JPF) regime, with the total number of JPFs now standing at just over 700 – an increase of 100 since last year – whilst the total assets under administration in Jersey now sits at £520bn.

Nevertheless, he pointed to the need to maintain momentum if Jersey was to retain its leading position as a European funds domicile with global ambitions. He said:

“After five continuous years of growth, the performance over the past year was largely flat, which is a first for Jersey, but not unexpected given the incredibly difficult fundraising environment we have seen over the past year at a global level. The outlook remains calm but not stable, and we need to be alive to the macro conditions shaping our industry.”

In particular, Michael highlighted that alternatives – including private equity, real estate and venture capital - continue to represent 90% of Jersey’s total funds business, a model that has created a stable platform of long-term capital. However, there was now a risk of that model being buffeted by global trade-winds, with Michael urging caution in the face of increased competition as market conditions improve:

“There are brighter times on the horizon but we cannot be complacent. Investors are continuing to apply pressure and are focusing new commitments on a narrow swathe of funds. Equally the activity related to the mountain of dry powder available remains stunted by historical standards. It’s vital that Jersey recognises that these macro-economic and political circumstances are out of our control and finds ways to ensure it can keep its wheels turning.

“It’s critical that we focus acutely as a jurisdiction on what managers really care about when it comes to choosing a fund domicile and assert our core strengths – our speed and our high-quality service levels in particular. By embracing innovation and being agile, we can also enhance our product and service range, including exploring the introduction of a Jersey ELTIF solution and clarifying our virtual assets proposition, for instance.”

Vice Chair of the JFA Joel Hernandez pointed further to the need for targeted innovation, and the significant volume of technical issues the JFA had addressed over the past year. In particular, he highlighted updated guidance to the JPF and progress being made in the virtual assets space:

“The recently published updated JPF Guide will help evolve and modernise that product further. This includes widening the categories for eligible investors, mutual recognition for carry schemes that have an element of team co-investment and widening the categories for family and employment connections. A similar approach is also being taken to update the JFSC's guidance to industry on virtual assets, specifically the tokenisation of real-world assets. This is a clear trend and it’s vital that Jersey maintains its reputation for good practical guidance to secure its future in this space.”

Gold sponsor for the evening was Mourant and silver sponsors were IQEQ, PwC, Ogier and BNP Paribas whilst the champagne reception was sponsored by Carey Olsen and the NextGen table was hosted by Gen II and KPMG.