Brexit, substance and transparency requirements, which have resulted in increased regulatory and reporting burden, and also increased
cost and uncertainty, have put different jurisdictions to test in different ways over the past years. At the same time, we have seen
jurisdictions blacklisted and gray-listed and more political uncertainty in general.
Sadly, blacklisting ends up having consequences, particularly when EU investors are involved. All managers will try to avoid utilizing a
jurisdiction where there could be surprises, like a blacklisting or a change of regulation from an unpredictable government. When
evaluating jurisdictions, a manager should understand if the jurisdiction has the ability to absorb these waves without disruption to their
structures.
Rather than being reactive to the onslaughts of global regulations, Jersey, as a leading financial hub and fund jurisdiction, has adapted
and strengthened its proactive positioning: “Are you positioned well enough to anticipate what’s coming?” is a question the top service
providers and agents of change are asked and able to address, given the deep and diversified talent pool and industry infrastructure.
The Future
Jersey took the lead and established itself as a crypto-friendly jurisdiction when Jersey’s regulator approved the launch of the world&’s first
regulated Bitcoin investment fund in 2014 and the world’s first listing on The International Stock Exchange of the Global Bitcoin Fund in
2016, as well as a number of initial coin offerings.
Right now, Jersey is – again, pro-actively – positioning itself as the leading ESG hub. This Roundtable explains Jersey&’s approach and what
this new paradigm really means for investors, managers and corporations.
On the structuring side, Jersey is making significant progress with introducing its Limited Liabilities Companies Law (LLC), which is
designed and modeled on Delaware, as an additional product on offer that US lawyers and managers are familiar with. This is another
expression of Jersey&’s focus on ‘plug and play’: the ability to set up a vehicle and either plug it into your existing structures or add it with a
minimum of work.
At the moment, roughly 19% of outward bound investment from the US goes to Africa. The Jersey Government views Africa as an engine
for future growth globally and has been building treaty networks across the continent, to position Jersey as a central hub for US /
Africa finance links.
All in all, Jersey presents a very strong proposition and a credible option, particularly for US and also Asian fund and investment
managers, who are considering setting up a manager with a full presence, through a ‘managed entity’ solution, or a hybrid of both. It is
globally recognized as a suitable jurisdiction with appropriate regulation and a good choice of fast-track innovative fund products, for
example, the Jersey private fund with a 48-hour authorization procedure. The onus is put on the regulated service provider, who deals with
the fund and manager compliance aspects, so this doesn’t impact on the managers too much, leaving them free to focus on the
investments.
Managers wishing to set up a full presence on the island will find themselves in good company as dozens of hedge and private equity fund
managers have recently relocated to Jersey, enjoying an extraordinary quality of life, and – not exactly trivial these days – the world&’s
second fastest broadband speeds. Download
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