Jersey Finance - Generic Brochure

Jersey The International Finance Centre

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ContentsDescription

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A B R I T I S H C R O W N D E P E N D E N C Y

I N T E R N A T I O N A L F I N A N C E C E N T R E

I N T E R N A T I O N A L s t a t u s

B A N K I N G

P R I V A T E W E A L T H

F U N D S

C A P I T A L M A R K E T S

I S L A M I C F I N A N C E

J F L 0 1 9 a b o u t j e r s e y f i n a n c e

R e g u l a t i o n & C o n f i d e n t i a l i t y

J F L 0 2 1 U S E F U L j e r s e y C O N T A C T S

0001 JFL JERSEY’S FINANCIAL SERVICES

LONDON45 mins

MOSCOW4hrs via London

PARIS1hr 20 mins

BRUSSELS1hr 10 mins

FRANKFURT1hr 55 mins

GENEVA & ZURICH1hr 45 mins

Smm

1h

E

E N G L A N D

F R A N C E

USA

Indiadi

Greater China

G

Greenwich Mean Time

The largest number of finance industry professionals in any one offshore centre - almost 25%of Jersey’s total workforce.

It is in a central time zone that covers the closing of business in India and Greater China and the opening of business in the US.

Jersey has been able to deliver the ideal business conditions for international finance bolstered by its unique constitutional position. Although Jersey’s allegiance is to the British Crown, it is not a part of the United Kingdom and is not represented in the British Houses of Parliament. The island’s domestic autonomy has been preserved via charter and convention through 800 years of English history.

As a result of that unbroken constitutional position, Jersey proudly possesses its own democratically elected Parliament, which has consistently maintained responsibility for domestic affairs including fiscal matters. Jersey also operates its own judicial system, which is based on common law principles.

Jersey: A British Crown DependencyJersey is the largest of the Channel Islands and is situated only a short distance from the coast of northern France.

LONDON45 mins

MOSCOW4hrs via London

PARIS1hr 20 mins

BRUSSELS1hr 10 mins

FRANKFURT1hr 55 mins

GENEVA & ZURICH1hr 45 mins

Smm

1h

E

E N G L A N D

F R A N C E

USA

Indiadi

Greater China

G

Greenwich Mean Time

Open for international business - its central time zone overlaps with both East and West time zones.

Operates its own judicial system, which is based on common law principles.

Has its own democratically elected Parliament.

Over 800 years of history -has been independent and politically stable since 1204.


Jersey: The Leading International Finance Centre

Based on the firm foundation of tax neutrality for over 50 years, Jersey has been attracting deposits and investments from institutions and private clients across the world, and its finance industry has evolved to keep pace with the demands of the global marketplace. This success has been built upon by the key combinations of political independence and economic stability, and a mature and respected legal and regulatory system.

The wealth of experience and expertise offered by Jersey’s highly skilled financial service providers, combined with world-class infrastructure, gives an unparalleled welcome to businesses and investors alike.

Jersey is one of the world’s leading international finance centres, with a breadth and depth to its range of products and services that many other competing jurisdictions find difficult to match.

Private ClientOver 50 years of expertise in delivering private wealth management, trusts and estate and succession planning, and more recently foundations. Jersey’s trust law, established in 1984, is a model template for others, including the Hague International Convention on trusts.

Banking 40 banks accounting for £150.4bn deposited in Jersey*.

Funds1,380 funds with £189.4bn asset value of funds under administration and £20.7bn funds under investment management, in Jersey*.

Capital MarketsThere are nearly 100 Jersey companies listed on worldwide stock exchanges from London to New York and a combined market capitalisation of over £139 billion, plus Jersey has the greatest number of FTSE 100 companies registered outside the UK**.

InfrastructureJersey offers a comprehensive and robust business and communication infrastructure.

LegalJersey’s robust, modern and sophisticated legal framework is the source and foundation of Jersey’s finance industry.

TaxJersey offers a tax-neutral environment, with no Capital Transfer Tax/Capital Gains Tax/Value Added Tax/Withholding Taxes/Wealth Taxes, provides tax certainty and allows fiscally efficient cross-border investment.

RegulationJersey adheres to international best practice and global cooperation to ensure first class standards continually appeal to the international marketplace.

SubstanceJersey has a visible financial industry in its capital, St Helier, with the industry employing a quarter of the local workforce. In over five decades, Jersey has developed a breadth and depth to its range of products and services that competing jurisdictions find difficult to match.

*As at 30 June 2012 ** As at May 2012

Hong Kong »

New Delhi »

Mumbai »

Abu Dhabi »

Jersey »

London »


JERSEY DOES BUSINESS WITH OVER 200 COUNTRIES AND HAS A SPECIFIC FOCUS ON THE UK, EUROPE, ASIA, INDIA, AND THE GULF REGION

International StatusJersey’s world-class reputation has been endorsed by independent bodies and institutions of the highest standards.

• Rated by the IMF in 2009 as one of the best global international finance centres.

• One of the first international finance centres to be placed on the OECD “white list” as having implemented internationally agreed tax standards in 2009.

• Invited by the French Chair of the Organisation for Economic Co-operation and Development (OECD) Peer Review Group to be Vice Chair alongside Japan, Singapore and India in 2009.

• The results of Jersey’s 2011 OECD Peer Review found “Jersey’s practices to date have demonstrated a responsive and cooperative approach”.

• Received favourable British Crown Dependencies Review (conducted by UK government – Foot Review 2009).

• Rated as the top Offshore Jurisdiction in the last seven GFCI Indices (Global Financial Centres Index).

• Named Best International Finance Centre in the International Fund & Product Awards 2010, 2011 and 2012.

Hong Kong »

New Delhi »

Mumbai »

Abu Dhabi »

Jersey »

London »

LONDON ABU DHABI MUMBAI NEW DELHI HONG KONG

JERSEY DOES BUSINESS WITH OVER 200 COUNTRIES AND HAS A SPECIFIC FOCUS ON THE UK, EUROPE, ASIA, INDIA, AND THE GULF REGION


Regulation & Client ConfidentialityThe Jersey Financial Services Commission (JFSC) is a statutory body corporate, governed by a Board of Commissioners.

It is responsible for the regulation, supervision and development of the financial services industry in Jersey.

Through the JFSC, Jersey has been able to demonstrate its commitment to the highest global standards of financial regulation, which coexist with complete client confidentiality.

www.jerseyfsc.org

Image courtesy of Danny Evans

GLOBAL RATINGas one of the best international

finance centres by the International Monetary Fund (September 2009) along with

the UK and US

20 YEARSOperating under a Fund Functionaries Supervision regime

THE FIRST offshore finance centre to become a full signatory to the IOSCO Multilateral Treaty

Operating with a

DEPOSITOR COMPENSATION SCHEME

HIGH REGULATORY STANDARDS

resulting in no banking failures during the recent

financial crisis

FULLY ALIGNED with the highest standards

of 3rd Anti-Money Laundering EU Directive

INTERNATIONAL AGREEMENTS

The JFSC has MoUs either on a bilateral or multilateral basis

with regulators in over 70 countries, including China,

India, UAE, and Qatar

Jersey’s regulatory regime provides

DEVELOPMENT REGULATION SUPERVISION


BankingOur banks attract clients from more than 200 countries and a sizeable share of Jersey’s total deposits are held in foreign currencies, a reflection of the international appeal of Jersey as a banking centre.

Corporate and Institutional BankingJersey has become a leading finance centre in the provision of corporate banking services for multinational organisations, financial institutions, companies and firms with cross border interests and activities. For many corporate treasurers, institutional bankers and treasury specialists, fund promoters, brokers and other corporate financiers, Jersey represents an extension of the City of London.

Banking Services for International InvestorsJersey is home to global banking organisations from the UK, Europe, North America, South Africa, Asia, and the Middle East. Many are listed in the top 20 by assets globally and deliver expertise in wealth management and financial planning.

Banking and the Funds SectorJersey’s banking sector has been able to provide services to support the fast-growing alternative investment funds industry, in particular the real estate, private equity and hedge fund markets, offering, for example, loan facilities to acquire assets and bridging facilities where appropriate.

Personal Banking – Including Expatriates and Professionals Working OverseasOffshore banking is an important consideration in assisting with wealth creation and preservation. The range of banking services provided from Jersey is extensive, including multi-currency banking, offshore mortgages, investment solutions and more.

ALL OUR BANKS ARE LISTED WITHIN THE GLOBAL

TOP 500 COUNTRIESWORLDWIDE

AND ATTRACTCLIENTS FROM OVER

200O R I G I N O F J E R S E Y ' S B A N K D E P O S I T S

As at 30 June 2012

UK, Jersey & Guernsey

Europe (Non-EU Members)

Middle East

Europe (EU Members)

Other

North America

Far East

£67.1 billion

£27.1 billion

£19.4 billion

£13.6 billion

£11.3 billion

£6.1 billion

£5.9 billion

45%UK, Jersey & Guernsey

18%Europe (Non-EU Members)

13%Middle East

9%Europe (EU Members)

8%Other

4%North

America

4%FarEast


Private WealthJersey is arguably the number one jurisdiction globally for trusts, with a pedigree in the field of administering trusts since the 1960s.

Trusts in Jersey

Today, the emphasis has shifted away from the very simple trust and underlying company structure for UK families, to high value and more complex structures involving trusts, companies, limited partnerships and now foundations for international families.

In terms of the range of trust business undertaken, in addition to the establishment of “virtual” family offices for ultra-high-net-worth families, the industry in Jersey has led the way in the establishment of structures for corporates looking to put in place suitable and innovative arrangements for the rewarding of staff and to provide for their retirement.

Jersey has a broad range of trust service providers from large banks and independently owned companies to the smaller niche providers. Clients and trustees have access to legal support from experienced law firms that can advise on Jersey structures that best suit a client’s requirements.

The Jersey Foundation

The Jersey Foundation offers flexibility and provides more options to financial intermediaries advising high-net-worth clients and wealthy families worldwide.

The Jersey Foundation sits alongside existing vehicles such as companies, trusts and limited partnerships as one of a range of structures for wealth management. Importantly, the Jersey version is not a carbon copy of similar foundation vehicles available in other locations, partly because it embraces additional regulatory oversight. This is an important consideration for those planning to transfer existing foundations from another jurisdiction to a Jersey one.

As well as featuring some of the attractions of a trust vehicle, foundations also have some of the benefits of a company structure including separate legal status, which will enhance their appeal to private clients and their advisers in civil law jurisdictions who may not previously have considered Jersey as a location to place assets.

1,184JERSEY STEP

PROFESSIONALS

STEP Jersey is the largest branch of the society, representing 7% of the worldwide membership.

No.1

Best International Finance Centre 2009/2010, Society of Trust & Estate Practitioners.

JERSEY HAS RETAINED ITS POSITION AS THE HIGHEST

RATED OFFSHORE INTERNATIONAL FINANCE

CENTREand remains the only offshore jurisdiction to feature in the world’s top ten for private banking and wealth management, according to the latest Global Financial Centres Index (GFCI) released in September 2012.

T R U S T S L A WThe Trusts (Jersey) Law 1984 was the basis for the Hague Convention on trusts and has been used as a model in a number of other jurisdictions.


FundsJersey has been a prominent player in delivering fund services since the 1960s. The emphasis today has shifted towards funds for institutional, specialist and expert investors.

Funds

Alternative investments have become increasingly popular as a way of reducing volatility in investment markets, and Jersey has attracted a significant number of venture capital, private equity, mezzanine, real estate, and hedge funds.

Jersey has built up an experienced range of fund administrators, both as part of the services supplied by major custody banks and large specialist fund administration firms, and by boutique groups who can provide more bespoke services to meet individual investor needs.

Clients have access to legal support from experienced law firms that can advise on Jersey legal structures that will best-suit investment strategies and on seeking

appropriate regulatory approvals. Lawyers work closely with counterparts in all of the world’s major centres including London, China, India, and the Gulf Region, to deliver structured products and specialist vehicles that meet a whole range of financial and investment objectives.

Jersey funds may be established as companies, limited partnerships or unit trusts, and be open or closed-ended, providing significant flexibility for investor needs. Recent enhancements to Jersey’s company law have delivered a number of innovative features, providing even greater flexibility for funds structured as companies. Legislation allowing separate limited partnerships and incorporated limited partnerships was introduced in 2011, and in 2012 the Private Placement regime, aimed at professional and sophisticated investors - where speed to market is critical, was introduced.

£189 NAV*ON 30 JUNE 2012B

ILLIO

N

20062011

20102009

20082007

NAV* Funds

Total NAV* £ Billions

£190£175

£1601,200

1,400

1,300

Numberof Funds

Numberof Funds

2009

2010

2011

2009

2010

2011

+38%

20062011

20102009

20082007

+44%

*NAV - Net Asset Value of Funds under Administration


Capital MarketsThe breadth and depth of services provided to the corporate sector from Jersey is one of the features that differentiates the island from some of its competitors.

The jurisdiction has developed specialist expertise in supporting complex cross-border capital markets transactions structured by the world’s leading investment banks and professional services firms. In this regard, Jersey is recognised by many finance professionals as the preferred offshore partner to the City of London.

Leading lawyers, accountants, bankers and other professionals within the largest workforce of any offshore finance centre, harness their skills to create sophisticated lending packages, structured finance vehicles and other bespoke products to support international capital markets activity and institutional funding. Major banking groups in Jersey provide global custody, treasury and money market services, as well as credit and cash management services to the trust and fund industries.

There has been notable growth in securitisation and repackaging transactions and Jersey is acknowledged as one of the most important European centres for establishing employee share plans.

Jersey’s flexible company law is also gaining wide recognition on the international stage. New regulations implemented in 2011 simplified the process for mergers between Jersey companies and foreign ones, whilst approval for Jersey companies to be listed on the Hong Kong Stock Exchange in 2009 also widened Jersey’s appeal for corporate work.

Furthermore, Jersey’s capabilities and experience in structured finance vehicles and other bespoke products to support international capital markets activity, and the jurisdiction’s partnership with the City of London, provides an excellent platform to develop Jersey as an offshore renminbi centre for renminbi bonds issuance using Jersey vehicles.

The Channel Islands Stock Exchange, established in 1998, provides user-friendly listing rules, consistency of response, and swift efficient turnaround of documentation and competitive costs, adding to the armoury of services Jersey provides to the corporate sector.

89COMPANIES

LISTEDon the worldwide

stock exchanges from London to New York

BILLION COMBINED MARKET

CAPITALISATION

HIGHEST NUMBER OFFTSE 100 COMPANIESRegistered outside of the United Kingdom

Now one of the

LEADING INTERNATIONALFINANCE CENTRES FOR

LISTINGVEHICLES

£139

The following examples are leading multinational firms who have used Jersey Holding Companies as Listing Vehicles on international exchanges.

Company Description Listing details Value

Polyus Gold International Ltd

London’s largest premium listed gold producer, with the world’s third largest gold reserve

Jersey registered public company with Premium listing on the London Stock Exchange - 5 July, 2012

$9 billion

Naibu Global International Company plc

10th largest local sportswear brand in China

A newly incorporated Jersey public company for the existing Naibu group of companies and was listed on the AIM Market - 5 April, 2012

£68 million

Polymetal International plc

Polymetal is the largest Russian silver producer, and fifth largest in the world, and one of the largest gold producers in Russia and Kazakhstan

Jersey registered public company, as part of the FTSE 100 with Premium listing on the London Stock Exchange - 12 December, 2011

£3.5 billion

Glencore International plc

Glencore is a leading global integrated producer and marketer of commodities, with worldwide activities

Jersey registered public company, largest capital raising by an international company in London, largest ever Premium listed IPO and the first company to enter the FTSE 100 at admission in 25 years on the London Stock Exchange - 24 May, 2011 with a secondary listing on the Hong Kong Stock Exchange

$59.2 billion

Genel Energy plcPreviously known as Vallares plc and has since merged with Genel Energy International Ltd

Vallares, a ‘special purpose acquisition company’ backed by Tony Hayward and financiers Nat Rothschild, Julian Metherell and Tom Daniel

Jersey registered public company, in the FTSE 250, was one of the largest flotations on the London Stock Exchange in 2011 – 22 June, 2011

£1.35 billion


Islamic FinanceJersey offers Islamic investors a flexible legal system,

measured regulatory regime and a tax-neutral environment that positions Jersey as a leading provider of

Islamic Financial services.

Jersey’s funds sector is a leader of Islamic asset management. The jurisdiction is a preferred domicile for developed asset classes such as real estate, private equity, commodity and equity for Islamic fund mandates.

Funds in Jersey are regulated depending on the type of investors the fund has and also whether or not it is closed or open-ended. Sophisticated or institutional investors are subject to a lighter regulatory framework, provided that the offer document makes the risks involved in the fund clear.

The Jersey finance industry has an established reputation for corporate structuring, and especially SPVs used for a variety of purposes. Historically, GCC Obligors would use a subsidiary company as an SPV. However, Shariah scholars have deemed this unacceptable and require that SPVs should be independent, enabling Jersey products to be used successfully with Sukuk structures.

Jersey-based SPVs have been used in connection with a wide variety of Shariah-compliant Islamic capital markets transactions. These have included structures established for the purpose of making investments off-balance sheet and securitising assets. A variety of legal vehicles are available including:-

• a Jersey incorporated company which issues Sukuk • a limited partnership issuing partnership interests • a trust issuing units or trust interests or certificates

Islamic Asset Management and Fund Domiciliation

Jersey Special Purpose Vehicles (SPVs) and Sukuk Structures

Jersey companies are governed by the provisions of the Companies (Jersey) Law 1991 as amended (the “Companies Law”). A Jersey company in a Shariah-compliant transaction can usually be incorporated very quickly. An urgent incorporation service allows a company to be incorporated in less than twenty-four hours, if all the required information is supplied.

Regulation of Sukuk issues and other Islamic products is provided by the Jersey Financial Services Commission (the “JFSC”). The JFSC is familiar with Islamic products and they are processed in the same manner as other securities, as Jersey’s laws are broad enough to permit the issue of all types of Islamic instruments.

Due to the similarity of Waqfs and trusts, combined with Jersey’s international reputation for trust expertise, Jersey trusts appeal for generational wealth planning for multiple family groups and charitable/philanthropic institutions from the Gulf Region.

The recently introduced Jersey Foundation offers high-net-worth individuals in the Gulf Region an attractive alternative to trusts for holding wealth with a structure designed to meet their needs and allow a greater degree of control than is possible with trusts.

Corporate SPVs

Regulatory Provisions

Islamic Private Wealth Management - Waqf, Jersey Trusts and Foundations

0019 JFL ABOUT JERSEY FINANCE

About Jersey FinanceJersey Finance promotes and leads the development of Jersey as an international finance centre.

The organisation’s primary objective is to communicate the many factors that make Jersey a leading international finance centre, including the experience and expertise of its practitioners; its political, economic and fiscal stability; and its high level of regulation and security.

It also actively represents the finance industry’s needs and concerns with regard to legislation, regulation and other key areas of innovation that can enhance Jersey’s product offering.

Jersey engages regularly with key markets around the world. Jersey Finance has representative offices in Hong Kong, Abu Dhabi, Mumbai and Delhi that deliver a promotional programme of:

• Networking events• Hosting business and government delegations from Jersey• Community of Interest groups for in-country practitioners who do business with Jersey• Introductory services for Jersey businesses new to the region

Hong Kong Office

Room 5, 20th Floor, Central Tower28 Queen’s Road CentralCentral, Hong KongT: +852 2159 9652F: +852 2159 9688E: [email protected]

Gulf Region Office

Bainunah St 34, Al Bateen C6TowerPO Box 113100 Abu Dhabi UAET: + 971 (0)2 406 9722F: + 971 (0)2 406 9810M: + 971 (0)50 10 96 715E: [email protected]

Mumbai Office

B 205 Dynasty Business ParkAndheri Kurla RoadAndheri EastMumbai - 400093 IndiaT: +91 (0)22 6742 3211F: +91 (0)22 6742 3215E: [email protected]

New Delhi Office3rd Floor, Devika Tower6, Nehru PlaceNew Delhi - 110019T: +91 (0)11 4212 4100F: +91 (0)11 4212 4199 E: [email protected]

Head Office

Jersey Finance Limited4th Floor, Sir Walter Raleigh House, 48-50 Esplanade, Jersey JE2 3QB Channel IslandsT: +44 (0) 1534 836000F: +44 (0) 1534 836001E: [email protected]

For more information about Jersey’s international finance centre, please visit:

Greater China www.jerseyfinance.hk

GCC www.jerseyfinance.ae

India www.jerseyfinance.in

Jersey www.jerseyfinance.je

The States of Jersey (Jersey’s Government)

Website: www.gov.je

Jersey Financial Services Commission

Website: www.jerseyfsc.org

Law Society of Jersey

Website: www.jerseylawsociety.je

Jersey Association of Trust Companies

Website: www.jatco.org

Jersey Bankers’ Association

Website: www.jerseybankersassociation.com

Jersey Funds Association

Website: www.jerseyfunds.org

Jersey Society of Chartered and Certified Accountants

Website: www.jscca.org

Jersey Chamber of Commerce

Website: www.jerseychamber.com

Chartered Institute of Marketing

Website: www.cimjersey.com

Jersey Finance Members

Website: www.jerseyfinance.je/members

0021 JFL ABOUT JERSEY FINANCE

Useful Networkof ContactsHere are some useful contacts to help you find out more about Jersey as a leading international finance centre...

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www.jerseyfinance.jewww.jerseyfinance.je

Jersey Finance - Generic Brochure

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