First published in the Jersey First for Finance publication, published by TIMES Group.
09 October 2024 Jersey: A cooperative and transparent jurisdiction for corporate services
Since its foundations in the 1960s, Jersey has established itself as a leading international finance centre (IFC). Its reputation for cooperation and transparency in corporate services makes it a prime example for other jurisdictions aiming to enhance their financial sectors.
Providing a robust framework for companies and institutions seeking expert advice and administration services, Jersey’s reputation is built on a foundation of rigorous regulatory standards and a proactive approach to international cooperation.
This is most recently evidenced by the recent assessment carried out by MONEYVAL, whose report was released on 24th July 2024 and confirms that Jersey’s effectiveness in preventing financial crime is among the highest levels found in jurisdictions evaluated around the world.
A history of excellence
For decades, Jersey has been a preferred destination for businesses engaged in financing, funding, mergers and acquisitions (M&A), listings and cross-border activities. The Island's legal and regulatory environment is designed to support complex corporate structures and transactions, ensuring that businesses can operate efficiently and effectively.
Jersey's financial services sector is renowned for its expertise, with a wealth of professionals offering tailored solutions to meet the unique needs of each client across a range of sectors. Indeed, Jersey is a leading IFC for listing vehicles, with companies listed on worldwide stock exchanges, including the LSE and AIM, with a combined market capitalisation of approximately £146 billion.
Meeting modern demands
Jersey’s robust legal framework allows for corporate re-domiciliation, which provides companies with the ability to re-domicile a company into (or out of) the Island, allowing companies to take advantage of the expertise of Jersey’s corporate services providers and the benefits of domicile in a well-regulated jurisdiction.
As the global business landscape evolves, Jersey continues to adapt and innovate. The Island's corporate service providers are at the forefront of ensuring compliance with economic substance requirements, a critical aspect of modern corporate governance. These requirements mandate that companies demonstrate substantial economic activity within the jurisdiction, thereby enhancing transparency and accountability.
Moreover, Jersey's commitment to integrating environmental, social and governance (ESG) criteria into corporate operations, reflects a broader and more recent trend towards sustainable business practices. Companies and businesses are now increasingly expected to consider and prioritise their environmental impact, social responsibilities and governance structures and Jersey's service providers are well equipped to guide businesses through this transition, offering expertise in ESG reporting and compliance.
A comprehensive range of services
Jersey's corporate service providers offer a comprehensive range of services designed to support businesses at every stage of their lifecycle. From initial setup and incorporation to ongoing administration and compliance, these providers ensure that companies can focus on their core activities while meeting all regulatory requirements. Services include:
- Corporate governance: Ensuring that companies adhere to best practices in governance, including board composition, risk management and stakeholder engagement.
- Regulatory compliance: Assisting businesses in navigating complex regulatory landscapes, including anti-money laundering (AML), Countering Proliferation Financing (CPF) and combating the financing of terrorism (CFT) regulations, as well as ensuring compliance with ESG-related regulations and standards, including those set by the EU and other international bodies.
- Fund administration: Offering comprehensive fund administration services, including accounting, reporting and investor relations.
- M&A support: Facilitating mergers and acquisitions through due diligence, transaction structuring and post-transaction integration.
- Sustainable finance solutions: Support for sustainable finance initiatives, such as green bonds, impact investing and socially responsible investments.
- ESG reporting and disclosure: Assistance with ESG reporting, ensuring transparency and accountability in line with global standards and frameworks.
- Listings: Jersey has registered a number of FTSE 100 and AIM companies outside of the United Kingdom, making Jersey a prime location for Channel Island companies listing on the LSE, AIM and TISE.
Looking ahead
As international businesses continue to seek reliable, well-regulated and transparent jurisdictions for their operations, Jersey remains a top choice. The Island's commitment to maintaining high standards of regulation and transparency, coupled with its ability to adapt to emerging trends, ensures that it will continue to be a leading jurisdiction for corporate services.
In conclusion, Jersey's reputation as a cooperative and transparent jurisdiction is well-deserved. Its comprehensive range of corporate services, commitment to compliance with economic substance requirements, international standards and focus on integrating ESG criteria, make it an ideal destination for businesses looking to thrive in a complex and evolving global landscape. By offering a comprehensive range of services and being at the forefront of global trends, Jersey continues to attract and support companies seeking to enhance their operations and sustainability practices.
By fostering a collaborative environment and maintaining high standards of transparency, global businesses can develop in Jersey and contribute to the integrity of the international financial system.
