Newsroom

Industry News
Monday
06
April 2020

Links to Updates

The JFA is planning to issue a Weekly Links to Updates to members to ensure as much information as possible is issued to the membership during this time.

Please find belowlinks toupdates 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

Closing date extended on consultation paper on legislative enhances 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.

Industry News
Saturday
21
March 2020

Government Advice regarding Covid-19

Government advice to businesses surrounding Coronavirus

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

Industry News
Thursday
12
March 2020

Coronavirus & Economic Substance

Revenue Jersey issue guidance on Coronavirus & Economic Substance matters

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.'

JFA News
Friday
06
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.

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.

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

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.

JFA News
Thursday
05
December 2019

Jersey Funds Association presents findings of annual member survey

The findings of the second annual survey of the Jersey Funds Association’s (JFA) members will be instrumental in informing the organisation’s future direction and strategy, according to Chair Tim Morgan.

The findings of the second annual survey of the Jersey Funds Association’s (JFA) members will be instrumental in informing the organisation’s future direction and strategy, according to Chair Tim Morgan.

Highlighted to an audience of industry professionals at a presentation held at the Jersey Museum last week (28th November), the survey explored key opportunities and issues for Jersey’s funds industry and the sentiment of practitioners.

Amongst its key findings were that the industry’s approach to Brexit and new economic substance rules were balanced but largely positive, with over 80% 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 growth outlook, with 84% saying they were confident or very confident of growth, a significant increase from last year.

In addition, in respect of technology the survey indicated a clear trend, with over 56% of respondents saying that they had employed automation technology over the past year.

Tim commented: “The past year has posed a number of significant challenges, including Brexit and the introduction of substance legislation however we really shouldn’t underestimate just how positive the outcome of Jersey's work around these issues has been for our industry. The recognition from the EU at the beginning of the year has shown without doubt that as a jurisdiction we are serious about cooperation and global standards, and that has translated into good business flows. The fact that our industry now administers in excess of £340bn of assets – a record high - is no accident. That buoyancy really comes through in our survey this year.

“We are pragmatic as an industry too, though. What our survey shows us is that our members are keen to maintain a growth trajectory by looking at innovation, continuing to source the best talent, engaging with stakeholders, and differentiating ourselves through service quality, ease of doing business and stability.

“These findings will be vital in informing how we continue to enhance our funds ecosystem, and I’d like to thank our membership for their time and support in putting their views forward.”

Industry News
Wednesday
27
November 2019

Updates to substance guidance good news for fund managers in Jersey

Updated Guidance Notes published last week (22 November) by Jersey’s government, in conjunction with the other Crown Dependencies, provide further clarity around the interpretation of economic substance legislation.

Updated Guidance Notes published last week (22 November) by Jersey’s government, in conjunction with the other Crown Dependencies, provide further clarity around the interpretation of economic substance legislation which came into play in January this year and reflect Jersey’s focus on maintaining a substance-driven environment for fund managers, according to the Chair of the Jersey Funds Association.

Following the publication of the first iteration of Guidance Notes in April this year, the updated notes contain a number of points of relevance to the funds industry, in particular:

• that collective fund vehicles are out of scope of the law (save where they are carrying out fund management activities themselves, which will be the subject of future legislation) but their subsidiaries could still be in scope if they derive income from a relevant sector
• there is more specific guidance on the treatment of cell companies
• there is further clarification on the basis on which certain isolated decisions can be taken outside the island, provided this does not outweigh decisions taken in the jurisdiction.

Tim Morgan, Chair of the Jersey Funds Association, said: “This additional detail should prove helpful to managers in terms of how the law will be applied, and should give them reassurance that Jersey takes its economic substance commitments seriously. In particular, the notes generally clarify that funds themselves are not caught by the law and also provide more detail about the basis on which governance decisions should be taken.

‍“As a centre for fund management, Jersey has long had a market-leading approach towards substance and these guidance notes reflect Jersey’s approach to governance best practice.”

The JFA welcomed the initial publication of guidance notes earlier this year, as reinforcing the jurisdiction’s proposition for fund management.

JFA News
Friday
22
November 2019

JFA 2019 Member Survey: Presentation and Drinks

We're currently finalising our 2019 JFA Members Survey, which was launched last month. The results are now largely in and are already providing valuable feedback as to the position of the Jersey funds market.

We're currently finalising our 2019 JFA Members Survey, which was launched last month. The results are now largely in and are already providing valuable feedback as to the position of the Jersey funds market.

To mark the completion of the survey, as well as the end of a highly successful year for Jersey's funds industry, we're holding a drinks event from 6.30 - 8.30 at the Jersey Museum on Thursday 28 November.  If you would like to attend, please RSVP to enquiries@jerseyfunds.org.

In addition, if member firms would like to attend a presentation of the survey findings by members of the JFA committee, this will be held just before the drinks at 4pm on Thursday 28 November. Places will initially be allocated on a one place per firm basis – please contact enquiries@jerseyfunds.org for more information.

Industry News
Thursday
24
October 2019

Blog: Why managers can rely on Jersey through Brexit

With much uncertainty persisting around the UK’s departure from the EU, Dilmun Leach, partner at JFA member firm Collas Crill, takes a look at why Jersey’s ability to offer continuity and certainty should be music to the ears of non-EU fund managers…

With much uncertainty persisting around the UK’s departure from the EU, Dilmun Leach, partner at JFA member firm Collas Crill, takes a look at why Jersey’s ability to offer continuity and certainty should be music to the ears of non-EU fund managers…

Q: Jersey is outside of the EU – so how is it affected by Brexit?
DL: Jersey is not a member state (or associate member) of the EU and not part of the UK. Jersey has its own government which is elected locally, makes its own laws (including in respect of taxation) and has its own court system.

As far as its relationship with the EU is concerned, Jersey is currently part of the EU Customs Union by virtue of ‘Protocol 3’. When the UK joined the EU (the European Economic Community as it was then) in 1973, it was agreed that Jersey would benefit from the UK's membership of the EU by bringing it, along with the other Crown Dependencies, within the EU Customs Union for the purposes of trade in certain goods (but not services), whilst preserving its autonomy.  This agreement was set out in Protocol 3.  

The Protocol 3 relationship is dependent on the UK remaining a member of the EU and will cease to exist, simultaneously with all other treaty arrangements between the UK and the EU, once the UK's membership of the EU ceases.

Q: Without Protocol 3, how will Jersey trade with the EU?
DL: Jersey is able to market financial services to the EU because those services currently meet the requirements imposed by the EU – that will not change because of Brexit.  Services have always been outside the scope of Protocol 3.

Jersey has also taken steps to ensure continued market access for Jersey investment funds into the UK post-Brexit. Jersey’s financial services regulator, the Jersey Financial Services Commission, has signed a Memorandum of Understanding (MoU) with the UK’s Financial Conduct Authority which ensures Jersey firms can continue to use the UK’s National Private Placement Regime (NPPR) after Brexit.

That MoU will come into effect if EU law no longer applies in the UK, either through a ‘no deal’ Brexit or at the end of any transitional arrangements (that are agreed as part of a negotiated deal) once the UK leaves the EU.

Q: Will anything change for fund managers with Jersey funds and investors in the EU/UK?
DL: In short, no. It is expected to be 'business as usual' for Jersey funds.

As far as the UK is concerned, the MoU signed with the FCA, outlined above, provides certainty that access by Jersey funds and managers to UK investors will continue uninterrupted and irrespective of any Brexit outcome.

In terms of the EU, Jersey is not and has never been part of the EU. Rather, as a third country, Jersey will maintain access to the EU funds markets as a result of agreements between the Jersey Financial Services Commission (JFSC) and financial regulators in 27 of the 31 EEA States.

Q: Will the ‘NPPR’ route to market continue to operate through Brexit?
DL: Jersey funds are currently eligible to be marketed into the EU and EEA in accordance with the provisions of the AIFMD through NPPR, and that will not change.

In fact, NPPR is set to continue to operate for the foreseeable future, with a report undertaken by KPMG for the EU Commission at the end of last year confirming that NPPR is of added value to the EU, works in the interest of investors, and should remain in place. Certainly it’s a route to market that is proven to work well through Jersey – currently, more than 170 managers are marketing in excess of 300 funds into the EU through Jersey in this way.

NPPR permits the marketing of non-EEA alternative investment funds in the EEA, subject to national law and regulation in force in the relevant country.  In addition, certain conditions set out in the AIFMD must be met.  Those conditions include the need for supervisory cooperation agreements to be entered into between the JFSC and regulators in the relevant EEA countries in which the marketing is to take place.  Jersey benefits from cooperation agreements with regulators in 27 out of the 31 EEA countries.

Q: What about passporting?
DL: AIFMD made provision for "third countries" to be granted the same passporting rights as EU member states, subject to certain conditions being met. ESMA published its assessment of potential "first wave" third countries and, along with Guernsey and Switzerland, found that were no significant obstacles to Jersey becoming a third country jurisdiction.

The EU Commission has not yet pressed ahead with the implementation of the third country passporting regime, but the indications are that if and when the regime is put in place Jersey will be amongst the first non-EU countries to be granted passporting rights.  Until then, and potentially beyond it too, NPPR through Jersey will remain a key route to the EU market for non-EU managers.

As far as the ‘rest of the world’ is concerned, AIFMD is not relevant to Jersey funds with a Jersey manager which markets outside the EU/EEA, and these will continue to be subject to the laws of the countries in which the fund is marketed.  

Q: So is Brexit a good thing for Jersey?
DL: It is generally thought that actually Brexit presents opportunities for Jersey in the funds space. Jersey's NPPR remains best in class for accessing EU investors and there may be additional opportunities for Jersey (rather than our EU competitors, such as Luxembourg) to provide structures via which UK investors can invest in UK assets.

In addition, managers in the UK, US and elsewhere may be able to launch funds in a shorter time-frame and with lighter ongoing regulatory requirements than in an EU member state such a Luxembourg.  

On 12 March 2019, the European Council of Finance Ministers confirmed Jersey's status as a transparent and cooperative jurisdiction, and that Jersey's legal substance requirements are considered compliant with EU requirements.  The effect of this is that the European Investment Fund (EIF), being a specialist provider of risk finance for small and medium-sized enterprises across Europe, backed by the European Investment Bank, EU, and a range of public and private banks and finance institutions, confirmed that there is no impediment to the EIF investing in Jersey private equity or venture capital funds, meaning that Jersey funds continue to be open to billions of Euros of potential investments.

Real-life case studies compiled by the JFA to illustrate how NPPR is proving effective in accessing EU investor capital can be found
here.

JFA News
Sunday
06
October 2019

Jersey in good shape six months on since introduction of CGT rules

Six months on since new rules on the application of Capital Gains Tax (CGT) for overseas investors in UK commercial property came into play, Stephanie Henwood-Darts, Director at JFA member firm JTC, looks at how the market looks and why Jersey remains a good option.

Six months on since new rules on the application of Capital Gains Tax (CGT) for overseas investors in UK commercial property came into play, Stephanie Henwood-Darts, Director at JFA member firm JTC, looks at how the market looks and why Jersey remains a good option for supporting UK-bound real estate investment…

Q: In the six months since their introduction, have the new CGT rules had much of an impact on real estate fund structuring? Or is activity being ore influenced by other factors, such as Brexit?

A: There was an initial impact following the announcement, with tax advice pointing to, and therefore new funds being set up, onshore and through Luxembourg due to it having a favourable double tax treaty (meaning the UK does not currently have taxing rights over Luxembourg entities).

However, we are still seeing JPUTs due to the favourable elections that can be made (transparency election/exemption election) and the fact that the JPUT is a familiar structure which our clients already know and like. There is also the pull that we do not rely on double tax treaties but employ a tax transparent regime which means that tax is paid where the investment activity is and where investors are, which is completely appropriate.

Brexit is certainly having an impact on overall investment levels but there is an expectation that activity will increase once there is more certainty around the terms and timing of the UK’s exit.  

Q: In terms of how Jersey is positioned, has Jersey seen much of a swing in terms of fund activity targeting UK real estate assets since the new rules were introduced?

A: Although heads were initially turned, institutional investors are still favouring Jersey as a preferred jurisdiction through which to invest into UK commercial real estate. Now that there is a full understanding of the available elections for Collective Investment Vehicles (CIVs), it is expected that activity levels for Jersey funds will further increase.

Jersey is well placed to provide a tax neutral environment with an appropriate regulatory framework for investment funds raising global capital and investing in real estate all around the world, and this still includes UK commercial real estate.

Q: How do Jersey structures succeed in meeting the exemption options? Do the well-used JPUT and REIT structures continue to work well under the new rules?

A: Jersey structures work well under the exemption options which is largely due to the involvement of many Jersey professionals who ensured that they submitted detailed responses to the consultation and HMRC’s desire to protect the value of pension funds along with the attraction of the UK as a property investment jurisdiction.

Most JPUTS have been favouring the transparency election. This was designed by HMRC with JPUTs in mind and means that the JPUT will be transparent (just like it is for income tax purposes) and all investors will be taxed in accordance with their own profile. REITS are also a good alternative as they benefit from HMRC’s approved regime where the disposal of UK commercial property is treated as exempt from corporation tax and sales of shares also benefit from this exempt status.

However, all advice that we have seen in respect to REITS has been caveated with the fact that reporting requirements will be onerous. A Jersey REIT will automatically be UK tax resident so although there would be no tax benefit from structuring a REIT through Jersey, the benefit of regulatory flexibility (and certainty) and local expertise where any reporting can be handled in an effective and efficient manner should mean they increase in popularity.

Q: What about funds targeting other non-UK geographical markets? Are you seeing consistent RE activity elsewhere through Jersey?

A: We haven’t noticed a material increase in new funds targeting non-UK geographical markets but a number of clients with existing Jersey structures have added to them by including non-UK (mostly European) assets.

However, it is expected that there may be a spike in investment outside of the UK following Brexit. If this occurs, Jersey should be well placed to continue to be the home of fund vehicles and we see investment funds and structures being placed in Jersey which have global investment strategies, whether it's a London-centric special opportunities fund, a pan-European real estate fund or RE investment in Canada or the US.

Q: Looking forward to the coming 6 months, what do you see as the key influences on the global real estate market, and in terms of UK-focused activity?

A: We can’t escape discussing the ‘B’ word when talking about the next six months. Investors are already pricing in the cost of a potential no-deal Brexit and a dramatic decrease in the price of UK commercial property is predicted should this occur.

On the flip side, the weakness of the GBP could boost attraction towards the UK real estate market, in particular from US, Middle-East and Far-East investors. However, they may be put off by the potential difficulty in securing long-term (or any type of) leases, such was the initial sentiment in the aftermath of the Brexit vote. Communication with investors in respect of outlining the logic of decisions and clear strategic planning will be key to the success of funds navigating the post-Brexit landscape.  

Overall, Jersey has a great opportunity to promote its independence from the EU in respect of structuring it this time of uncertainty. Why structure through the EU for holding UK commercial property which will very shortly be outside of the EU? Jersey is already outside of the EU for regulatory purposes and is very much open for business!

JFA News
Friday
20
September 2019

New record high for Jersey’s funds sector as private equity soars

The value of regulated funds serviced in Jersey rose by 7% to a new record high in the first half of 2019, according to the latest figures to be collated by the jurisdiction’s financial regulator the Jersey Financial Services Commission (JFSC).

The value of regulated funds serviced in Jersey rose by 7% to a new record high in the first half of 2019, according to the latest figures to be collated by the jurisdiction’s financial regulator the Jersey Financial Services Commission (JFSC).

Figures for the second quarter of 2019 (ending 30 June 2019) show that the net asset value of regulated funds under administration in Jersey grew by £22.1bn over the first six months of the year to stand at £342.1bn, a new record high and a figure that has grown by more than 70% over the past five years.

The alternative asset classes continued to perform strongly, recording a combined rise over the first six months of 2019 of 6% to represent 85% of Jersey’s total funds business. Once again private equity was pivotal in driving the growth, rising by an impressive 14% over the six-month period. There was also growth in real estate (up 2.5%) whilst infrastructure, credit and debt funds rose collectively by 2% and hedge funds decreased by 3%.

The latest quarterly figures come shortly after it was announced at Jersey Finance’s Annual London Funds Conference earlier this month that the number of registered Jersey Private Funds (JPF) had grown by 25% over the half year to 257, with assets under management of £43bn – more than double the value at the end of 2018 (£19.4bn). The figures for JPFs, a structure that was introduced in 2017 to cater for the needs of small groups of sophisticated investors, are in addition to the numbers in the quarterly statistics.

Meanwhile, figures from the JFSC also reveal positive news in the banking sector, where the value of deposits held in Jersey grew 5% in the first half of the year to stand at £129.3bn, the highest figure since 2015.

Commenting on the figures, Jersey Finance CEO, Joe Moynihan, said:

“It’s particularly pleasing that we have succeeded in maintaining our momentum from last year into 2019 with a really strong set of figures. At our conference in London earlier this month, we set out clearly why Jersey continues to prove an attractive option for alternative fund structuring and the fact that we have reached new heights midway through the year is compelling evidence of that. The stability Jersey can provide, together with its expertise, cutting-edge regulatory framework and global market access is clearly resonating with managers.

“The fact that our banking sector remains so resilient is hugely positive too. It is a key component of our financial services industry and is continuing to evolve to meet the increasingly sophisticated, global and digital demands of investors now and in the future.

Tim Morgan, Chair, Jersey Funds Association, added:

“These figures demonstrate that the private equity sector sees real benefits in using Jersey and that the Jersey Private Fund (JPF) is fast becoming the go-to structure for investors. Managers are continually looking for reliable, cost effective solutions to support their investors’ needs and Jersey’s funds offering provides the perfect solution for the long-term.”

The full set of quarterly statistics is available here.

Industry News
Monday
16
September 2019

Further upbeat fund figures revealed at London Funds Conference

Further positive figures about the size of the funds industry in Jersey were unveiled at Jersey Finance’s London showcase conference for the funds sector last week.

Further positive figures about the size of the funds industry in Jersey were unveiled at Jersey Finance’s London showcase conference for the funds sector last week.

Elliot Refson, Business Development Director - Funds at Jersey Finance, said that the number of Jersey Private Funds (JPF) had increased 25% in six months, highlighting the success of Jersey’s government, regulator and industry working together to create the best possible environment for attracting innovative, quality funds business.

Figures from the Jersey Financial Services Commission (JFSC) showed that the number of JPFs, a structure introduced in 2017 to cater specifically for the needs of small groups of sophisticated investors, had reached 257 by 30 June 2019, up from 205 at the end of 2018, with assets under management of £43 billion.



Joe Moynihan, CEO of Jersey Finance, described Jersey as positioned perfectly to act as a quality filter to manage international financial flows: “As investors look for stable IFCs that offer specialist expertise, Jersey can be a voice of reason among the noise, ready to support investor ambitions.”

Furthermore, irrespective of the outcome of Brexit, Jersey was able to bridge the gap between the UK and Europe thanks to the bilateral agreements that were in place with the EU alongside its long standing relationship with the UK, boosted by a recently signed Memorandum of Understanding between the JFSC and the UK Financial Conduct Authority which gave fund managers added certainty around accessing UK investor capital through Jersey in the build up to Brexit.

Entitled ‘Beyond Boundaries’, the annual Jersey Finance funds conference 2019 (on September 10) attracted more than 350 delegates and a range of industry leading speakers and panellists who discussed the impact of regulation and governance, the trends in the alternative funds sector, and further examples of innovation and trailblazing by fund managers, lawyers and administrators who were using Jersey for their fund structuring.



The event was also an opportunity to flag up how Jersey had become a clear choice for socially responsible investing (SRI) and especially impact investing, with Mr Moynihan noting that there were already more than 30 SRI funds under administration in Jersey with assets valued at US$7.4 billion.

He also highlighted Jersey’s increasing global footprint pointing to the fact that Jersey became the first IFC to be permitted to open an office in the Dubai International Finance Centre last year. Further, next month, Jersey will formally open its first office in New York, partly to support the growing demands from US promoters choosing Jersey evidenced by US promoter assets under administration in Jersey increasing by 148% over the past five years.**

Meanwhile, the Island’s rapid investment in technology – it is the first place in the world to have full fibre telecom networking delivering speeds of 1 Gbps (gigabits per second) – had positioned the jurisdiction at the forefront of fintech investment fund services.

The conference, at the Royal Lancaster Hotel, included keynote addresses from Todd Buchholz, former Director of Economic Policy at the White House and current managing director of the US$15 billion Tiger hedge fund, and Dan Snow, BAFTA award-winning broadcaster and popular figure on BBC television presenting historical topics.

A total 18 industry experts from London and Jersey contributed to four breakout sessions which were entitled ‘New Alternatives’ moderated by Alice Murray, founding editor of The Drawdown; ‘Solutions for Fund Managers – Governance, Substance and Location’, with moderator Tim Morgan, Partner, Mourant and Chairman of the Jersey Funds Association; ‘Building Global Bridges’ moderated by Nicholas Neveling, editor, Real Deals; and ‘The Evolution of Real Estate’ with moderator Sophie Reguengo, Partner, Ogier.*



They debated factors affecting the alternatives market, pinpointing the strengths of the Jersey offering, drawing on the use of case studies outlined by managers, while also examining how the funds sector was responding to the technical and regulatory challenges it faced and Jersey’s role in providing solutions.

Summing up the Jersey offering, Joe Moynihan added: “Having one of the largest communities of finance industry and legal specialists of any IFC, combined with our speed to market, adoption of the latest standards in transparency, our tax neutral status and mature environment for funds business and with increasing numbers of local firms and advisers operating across multiple jurisdictions, we have all the hallmarks to remain the jurisdiction of choice.”

JFA News
Monday
08
July 2019

New JFA Chair points to Jersey's strength in alternatives

Jersey’s ability to offer a quality service in the alternative investment space will ensure ongoing growth of its funds industry, according to Tim Morgan, the new Chair of the Jersey Funds Association (JFA).

Jersey’s ability to offer a quality service in the alternative investment space will ensure ongoing growth of its funds industry, according to Tim Morgan, the new Chair of the Jersey Funds Association (JFA).

Elected into the position of Chair at the recent AGM (28 June) of the trade association that represents Jersey’s funds industry, Tim, a Partner at offshore law firm Mourant, has practised in Jersey since 2003 advising promoters, investors, boards, regulators and service providers across asset classes including private equity, credit, real estate, hedge and liquid securities.

Prior to Jersey, Tim originally trained with Taylor Wessing in London and Brussels, before going on to practise as a corporate lawyer at PwC Legal and then at Dresdner Kleinwort Wasserstein in London and New York, advising on private equity sponsored transactions.

Also on the new-look JFA committee are Michael Johnson, who has been appointed Vice Chair and who heads one of the largest fund services businesses in the Island, as well as a number of other appointments to ensure the committee reflects the different aspects of the developing funds industry. Chris Marshall continues as treasurer, Niamh Lalor as chair of the legal and regulatory subcommittee, Martin Paul as the chair of education and Steve Cartwright as the chair of the marketing subcommittee. Caroline Harrington also remains as Secretary.

Tim replaces former Chair Mike Byrne, who has been at the helm of the JFA for the last three years and was thanked at the AGM for his hard work on behalf of Jersey’s funds industry.

Following his election to the role of JFA Chair, Tim said: “Jersey’s funds industry operates in an increasingly complex market, but it is an environment that Jersey thrives in. With investors continuing to show an appetite to allocate to alternatives – Jersey’s sweet spot – and thanks to its ability to adapt, its deep pool of expertise and highly effective relationships between the regulator, government and industry, Jersey is in an extremely strong position to continue to assert its strengths on the international stage.

“In recent years we have seen numerous challenges to our industry but time and again we have responded adeptly, most recently through the implementation of economic substance legislation, underlining our commitment to governance and international standards. In recent months we have achieved record levels of fund servicing business, stellar growth in alternatives, big-ticket fund launches and rising numbers of managers choosing Jersey to bring their funds to market.

“To maintain our momentum, we must be brave, ambitious and clear about our capabilities as a jurisdiction that specialises in global fund structuring and distribution, and to that end I’m looking forward to working with the committee and stakeholders on and off-island as the JFA looks to support the ongoing success of our industry.”

Figures for Jersey’s funds industry show that, at the end of 2018, the net asset value of funds administered in Jersey rose to £320bn, the highest level ever recorded, with alternatives, including private equity, real estate, hedge, infrastructure and private debt funds, now representing 86% of that business.

An active trade association representing companies with Jersey offices operating in the funds sector, the JFA has over 100 members, including organisations spanning from niche independent Jersey-owned companies to global leaders.

JFA News
Tuesday
02
July 2019

Jersey Finance appoints US representative to head up New York office

Jersey Finance has appointed Philip A. Pirecki as its business development lead in the US, ahead of the opening of a new representative office in New York later this year.

Jersey Finance has appointed Philip A. Pirecki as its business development lead in the US, ahead of the opening of a new representative office in New York later this year.

In his new role, Philip will take on responsibility for enhancing Jersey’s visibility in the US as an international finance centre, focusing in particular on promoting Jersey as a gateway to Europe for US fund managers.

With over 20 years of professional experience spanning investment banking, investment management, consulting, auditing and accounting, Philip has a track record of growing and leading businesses in the Caribbean, US and Europe. He has a particularly deep knowledge of the hedge fund sector, with experience in multi-jurisdictional fund structuring, governance, regulation, legal, compliance, risk and operational management.


Previously, Philip was an independent director for hedge, private equity and investment companies and before that was Partner and Director of Silver Sail Advisors LLP, a London-based independent investment advisory firm. Prior to that, he was a Partner and COO at Silverstone Capital LLP, a hedge fund group based in London, whilst he has also worked as an equity research analyst and in forensic accounting in the US. He is a member of The Alternative Investment Management Association (AIMA).

Jersey Finance’s office in New York, which will be situated on Avenue of the Americas, is due to be formally opened at a launch event later this year.

Joe Moynihan, CEO, Jersey Finance, said: “At the start of this year, we set out a clear vision to expand our global reach and diversify our proposition in overseas markets, and developing our footprint in the US is a key part of that. Philip will play a vital role in enhancing our visibility and clarifying our proposition in the US, where we see significant opportunity and are already seeing traction – particularly in supporting fund managers who are seeking a reliable platform to support their European strategies.”

Commenting on his new role, Philip commented: “Jersey is perfectly positioned to capture a burgeoning US institutional investor market that is looking acutely at European opportunities but that is cautious because of the complex European regulatory landscape. With a position outside of the EU, a fantastic reputation for global funds business, a world-class regulatory framework and an impressive range of structures, including the Jersey Private Fund, Jersey has a really exciting opportunity to provide US managers with a solution that clearly meets their needs.

“I’m now looking forward to working with firms and contacts to build a strong network in New York and beyond “

The most recent Monterey Insight Jersey Report 2018 found that US promoters’ assets under administration in Jersey have increased by 148% over the past five years.