Jersey started from the basis of private client and trust work in the 1960s. The next decade saw the...
Jersey started from the basis of private client and trust work in the 1960s. The next decade saw the island's banks introduce services for expatriates, particularly British expatriates who were attracted to an English-speaking, politically stable location where familiar banking names were present. While maintaining this traditional appeal, the attractiveness of the jurisdiction to overseas investors has since been widened to include many foreign expatriate customers.
As of 30 June 2001, the value of funds in the centre stands at £106bn. This is an increase of 21.23% over the same quarter last year, and is the first time the figure has exceeded £100bn. The number of funds for this quarter has fallen from 313 to 302. However, sub funds have continued to rise to 1,575. Both bank deposits and assets under management rose during the quarter, bank deposits rose to £126bn and assets under management rose to £36bn.
A new body has been created to promote Jersey's financial services industry. Jointly funded by the island's government and the industry itself, Jersey Finance Limited aims to assist the jurisdiction to better communicate its strengths in the increasingly competitive commercial environment of international financial services.
Jersey has so far shown a thrust in implementing international standards and has obtained independent endorsements for its actions both in tackling financial crime and for the quality of its regulation from organisations such as the Financial Stability Forum established by the G7 nations and the Financial Action Task Force, a UN organisation.
Jersey, under the direction of the Jersey Financial Services Commission (JFSC), this year saw the introduction of the Financial Services (Jersey) Law, which extends the requirement of registration to trust and company service providers and imposes stricter regulation on their operation. Trust companies must demonstrate they are fit and proper in order to receive a licence.
The tightening of the rules in the trust and company area follows on from earlier legislation designed to regulate investment business in Jersey. Prior to that, the island was one of the first to embrace the need for more stringent anti-money laundering legislation through the introduction of the Proceeds of Crime Law.
The Investment Business Law 1998, meant that from 1 July, anyone providing investment services has to be registered by the Jersey Financial Services Commission. Investor protection restrictions are now allowed to be lifted in the case of professional investors who want to the freedom to take risks. The Proceeds of Crime Law 1999 tightens up protection against money laundering and other criminal activities. The courts can confiscate the proceeds of crime and enforce confiscation orders made in some overseas countries.
Expanding on the remit in the drug trafficking and terrorism laws, if a professional suspects someone has been engaged in any serious crime anywhere in the world, it is illegal to help them retain the proceeds of it.
However, new legislation is not all about clamping down. It is also about ensuring that the most appropriate legislation is in place. For example, in Jersey the Finance and Economics Committee has been granted the power to make adjustments to various regulations. Prior to the change, insurance companies would need to register under both the insurance business law and the investment business law for providing the same service. Another area being looked at is that where large international firms give limited advice to Jersey companies, they have to register with the commission, even if they do not want to advertise their services throughout Jersey.
The Economics and Finance Committee can now lay down anti-laundering procedures that financial businesses must follow, including using identity checks, keeping records for at least five years and appointing a money laundering reporting officer. Many offshore centres require professionals ' such as lawyers holding clients' accounts ' to declare to the bank that they have identified and know their client.
Location: Jersey is one of the Channel Islands located in the English Channel off the north-west coast of France with the UK to the north
Regulatory contact: Jersey Financial Services Commission, Nelson House, PO Box 267, David Place, St. Helier, Jersey JE4 8TP
Tel: +44 (0) 1534 822 000
Fax: +44 (0) 1534 822 001
Email: [email protected]
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