A report by the Jersey Financial Services Commission (FSC) for the first quarter of 2000 shows that confidence in Jersey as a key offshore financial centre remains high, despite extra financial regulations which reached a critical point on 16 May with the unanimous passing by the Jersey States of the Financial Services (Extension) Bill (Jersey), which is widely seen as a groundbreaking piece of legislation.
The law is an amendment to the Investment Business (Jersey) Law and will extend regulation to the important trust company business in Jersey. According to the Jersey FSC, it will engender significant international client confidence as it ensures that all those who conduct trust company business on the island have satisfied the FSC that they are above board or 'fit and proper', as the FSC terms it.
The test comprises three elements - competence, solvency and integrity. Businesses will be required to comply with Codes of Practice which set out best practice. The FSC sees these measures as collectively providing an 'environment of excellence for those who seek to use trust company services and continue to reinforce Jersey's reputation as a well regulated jurisdiction'
Helen Hatton, Deputy Director General of the Jersey FSC, said 'The regulation of trust and company service providers is now a leading recommendation of several major bodies - The Financial Action Task Force and The Council of Europe for example. It is important that Jersey maintains its pole position in the development of offshore standards and this new Law is an important step forward.'
The passing of the law, whilst having benefitted from consultation with the Jersey finance industry throughout its passage, had been feared by many in the financial services industry as a restriction on their practices and concerns have been expressed about its effects on business. However, figures just published by the Jersey FSC would indicate that business in is booming in Jersey.
Between January and March this year, the value of funds on Jersey rose by 12.7 per cent or £1.9 billion, reaching a total of £80.7 billion. Moreover, the first months of this year have witnessed a massive 50% increase in company incorporations. In addition, Jersey bank deposits have risen from £108.4 billion to £109.2 billion between January and March, representing a rise of 0.8 per cent, whilst investment business funds rose by over a third to £32.03 billion.
Richard Pratt, Director General of the Jersey FSC, answered critics of the new regulations by saying the latest investment figures demonstrated that good quality regulation serves as a catalyst for good quality business.
He stated 'The new law will demonstrate Jersey's commitment to high standards of regulation. Not many jurisdictions yet regulate trust companies and company service providers. But where Jersey and the other Crown Dependencies have led, others will follow. High quality regulation attracts high quality business. There is no suggestion that this regulation, of which the market has been aware for some time, is in any way slowing down the flow of good quality business to Jersey.'
.
Network Tweets
Network BlogsContent
provided by
|
Archive | Resources | Partners | Site Map | Links | Newsletter Archive | Contact | RSS Feeds | About | Syndication | Advertising & Marketing | Recruitment | Terms & Conditions | Privacy & Cookies
Copyright © 2012 - All Rights Reserved - Tax-News.com
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment