By Els Ternest and Claire Hopkinson
According to the latest competitive rankings published by the City of London, Jersey remains the highest rated offshore international finance centre and is now the only offshore jurisdiction in the global top twenty.
Highly rated IFCs build their reputations based on a number of factors but central to these is the need for a high quality workforce. What makes Jersey an attractive proposition to the private client professional?
On the business front, Jersey offers a friendly tax regime, and a highly-developed legal system assisted by a supportive government which has kept investor confidence high and Jersey ahead of ever-increasing global competition.
Canvassing industry professionals, whether Jersey ‘Beans’, as the locals call themselves, or expats from the mainland or further afield, what sets Jersey apart is quality of life. The island promises a safe environment for families and good schools for the children, in addition to fast and easy access to the UK and the continent. The size of the island means a low commuting time, and the beaches and amenities, including excellent restaurants, ensure that the all important work/life balance is readily attainable.
With a population of around 90,000, 15% of this number equate to professionally qualified people working within the finance industry. With its close proximity to Europe and its independence from the EU, Jersey offers location, tax and time zone benefits for the Private Client professional.
Looking at Private Client Services, the trust services sector plays a big part in the finance industry and ensures that Jersey is a key competitor jurisdiction in this market. Jersey has highly regarded modern trust law. Although based on English trust law it has evolved over time to ensure it remains flexible enough to meet the sophisticated requirements of its international clients. Decisions over foreign and domestic trusts administered in Jersey are made by the internationally recognised Royal Court of Jersey which provides an all-important degree of comfort to settlers and beneficiaries.
Although the impact of the financial crisis hit the financial services job market in Jersey, the worst seems to be over and hiring statistics across trust administration and management, planning, structuring and contentious disputes have increased noticeably in the last quarter of 2009 and the first half of 2010.
One of our clients, the MD of a Jersey-headquartered independent trust company, put it this way ‘Although impacted, Jersey has proven, to a degree, to be resilient in the recession, with none of its resident banks failing, and none of the international fraud scandals impacting the jurisdiction. Inevitably, the uncertainty has caused wealthy clients to be less active, meaning a reduction in the workload for service providers such as trust companies, lawyers, accountants, etc. There has also been a slower conversion of new enquiries into actual business, but overall, the industry has held up well.’’
But with Jersey seeing the effect of the economic downturn in 2009 are we starting to see signs of recovery and what does this mean for 2010? According to the same client, ‘the coming year will continue to pose challenges however. There are fears of a ‘double dip’ recession, and although the new UK Government generally seems positive for the economy, the uncertainty continues, and the effects of the inevitable tax increases will cause clients to review their offshore structures.’’
So with demand once again on the up, is it a simple process for a non-Jersey resident to relocate to the island? In comparison with certain other offshore jurisdictions and, relatively speaking, yes. EU citizens can come and work in Jersey without acquiring a work visa however, one must bear in mind that a company would have to apply for a non-local license from the States of Jersey giving the legal right to work. In certain cases, a company can also apply for a ‘J Category license’, or ‘J Cat’, which can give the holder extra rights such as the right to purchase property on the island and access to a wider choice of rental properties.
In spite of the combined effects of the financial crisis and the continued scrutiny of offshore financial centres, Jersey has maintained its position as the jurisdiction of choice in the offshore market. This positive news regarding Jersey’s competitive ranking should ensure continued high calibre work and therefore excellent opportunities are available to qualified private client professionals seeking to develop their careers while also enjoying true quality of life.
Els Ternest
Manager
els.ternest@ap-executive.com
Claire Hopkinson
Executive Consultant
claire.hopkinson@ap-executive.com
AP Executive is a specialist global private wealth management recruitment consultancy
Article first published in Private Client Practitioner magazine, July 2010