International finance and business regulations
International finance
For more than 40 years, Jersey has been at the forefront of international financial services developments designed to cater for the needs of the international investor.
A small island off the coast of north western France, Jersey has established itself as a leading international finance centre. Both institutional and private clients seek a quality location to meet their banking and investment requirements.
Its unique constitutional position; involving an 800 year allegiance to the English Crown and the existence of its own Parliament, which has responsibility for domestic and fiscal affairs; has been an essential factor in its evolution as one of the world's premier financial services jurisdictions.
As an English Crown Dependency, the island offers political and economic stability, a flexible, independently endorsed regulatory framework, a tax neutral environment, a mature and respected legal system and, backed by a 40 year track record of product and service innovation, a skilled and responsive workforce. These ingredients continue to be the basis for its global appeal as a jurisdiction of choice for international investors
As a matter of policy, the Island's regulator - the Jersey Financial Services Commission - will only authorise the global top 500 banks to establish a presence in the island. Jersey currently has approximately 50 such banks fromacross Europe, the United States and Canada, South Africa and the Gulf region.
It also has approximately 200 regulated trust and company administrators; over 100 investment managers, stockbrokers, advisers, custodians and fund administrators; a significant presence by all ‘Big Four’ accountancy firms as well as many of the medium-sized international firms; and a range of highly regarded offshore law firms with close links to major international firms.
Over 13,000 people are currently employed within Jersey’s financial services sector. Over the past four decades the island has developed a breadth and depth in its range of services that many other competing jurisdictions find difficult to match.
International finance (industry and finance section)
Business regulations
The Inward Investment team at Locate Jersey seek to encourage suitable high-value, ‘low footprint’ businesses to locate in the Island and the setting up of a new business operation involves the establishment of a physical business presence in Jersey and various consents before trade can commence.
The objective of these consents is broadly to ensure that the proposed new business meets Jersey's criteria in terms of regulatory standards and economic benefit. It is also to safeguard the island's quality of life.
In addition to any consents and permits required from the financial regulator (JFSC), the following key factors should also be considered by persons looking to establish a new business in the Island.
Work permits in Jersey
Whilst work permits are not required for persons from EU Member States, other employees from outside the island will require a work permit under the Immigration (Work Permits) (Jersey) Rules, 1995.
Work permits (working in Jersey section))
Regulation of Undertakings
The principal law governing the establishment of new businesses in Jersey is the Regulation of Undertakings and Development (Jersey) Law, 1973, as amended (the ‘Law’) requires any trade, business or profession, whether or not carried on for profit, and wherever carried out in the Island, to have a licence before commencing or engaging staff.
In making decisions under the Law, the Minister for Economic Development has regard to the need to regulate and manage demand on the Island’s resources. This is generally taken to mean that the needs of economic growth are balanced against the additional demand that migration places on the Island’s limited resources, including its environment. Decisions are also made having regard to the need to protect the financial and commercial integrity of the Island and to the provisions of the Competition Law and the decisions and directions of the Jersey Competition Regulatory Authority.
A licence to engage staff will usually be in the form of a staffing licence, for a defined period, usually three years, which will include a specified number of staff who can be engaged. Once granted a licence, an undertaking is free to manage staff numbers within the terms of that licence. An undertaking is also free to apply for additional staff at any time.
In making these decisions, a number of factors are considered as detailed in the published General Policy Statement 2008, including businesses expected contributions toward maintaining a prosperous local economy and the need to maintain job opportunities for local people.
Regulation of Undertakings (home and community section)