A: Jersey is one of the world's leading international finance centers, (Top 20 - GFCI 13 - March 2013) with a first class range of products and services that many other competing international finance centers find difficult to match.
Based on the firm foundation of tax neutrality for over 50 years, Jersey has been attracting bank deposits and investments from corporate institutions and private clients across the world, including China, and the finance industry has evolved to meet the needs of the global marketplace.
Q:What are the most popular financial products in your jurisdiction? How can they protect the interests of investors?
A:Jersey's high level of experience and expertise offered by our financial services providers combined with Jersey's first-class infrastructure; attract business and investors alike within the following sectors:
- Private Client
- Capital Markets
- Funds
- Banking
Q:What kinds of professional financial services (trust & foundation/corporate structure) can your jurisdiction provide? What are your existing clients from China? What potential clients do you want to attract from China and how?
A:Jersey has been a prominent player in the field of administering trusts since the 1960s. The emphasis today has shifted from the very simple trust and underlying company structure for families, to high value and more complex structures involving trusts, companies, limited partnerships and now foundations for international and Chinese families.
The highest standards of administration for trust structures, the varieties and flexibility of Jersey trust products and Jersey's well regarded court system are the main attraction for Chinese clients to set up trusts in Jersey.
Corporate activity has included a substantial amount of listing work on leading stock exchanges. Jersey companies were approved to list on the Hong Kong Stock Exchange in 2009 and since then two commodity giants, Rusal and Glencore, have used Jersey vehicles to successfully list on the Hong Kong Stock Exchange. In addition, one Chinese company, West China Cement, also used a Jersey vehicle to list on the bourse. Furthermore, about one third of Chinese companies listed on AIM in London are incorporated in Jersey.
Q:As an offshore financial center, what are you going to do in terms of balancing the need for more transparency with the need to protect the privacy of clients?
A:Jersey's finance industry is regulated by the Jersey Financial Services Commision (JFSC), who are committed to the highest global standards of regulation, whilst respecting client confidentiality:
- The JFSC has bilateral and multilateral MOUs with regulators in over 70 countries, including China, India, UAE and Qatar;
- Jersey and China (PRC) signed a Tax Information Exchange Agreement (TIEA) in October 2010;
- Jersey and Hong Kong signed a DTA in February 2012, which was ratified in July 2013;
- The JFSC has 20 years operating under a Fund Functionaires Supervision regime;
- The first offshore finance centre to become a full signatory to the IOSCO Multilateral Treaty;
- Jersey operates a depositor compensation scheme;
- Jersey is fully aligned with the highest standards of 3rd Anti-Money Laundering EU Directive;
- Jersey is one of the four Vice Chairs of the Peer Review Group of the Global Forum on Transparency and Information Exchange on Tax Matters;
- In 2012, JFSC initiated MoU negotiation with China Security Regulatory Commission (CSRC).
