The post-war period through to the changing millennium witnessed a world that was driven by globalisation. Cross border international trade, seeking new opportunities and markets were facilitated in doing so by using international financial centres that were tax neutral such that cross border money flows could occur without delay.
The events of the early 2000s, from the attack on the World Trade Centre to the global crash of 2007/8, and subsequent recession, has led to an increasingly changing world. The UK’s future relationship with Europe is very much unknown following the vote to leave membership of the EU by 2021. The rise of populist political parties across the world, particularly in Europe, will see a change in political landscape and thinking. The world is moving ever more towards protectionism. After a sustained period of stability, we are very much experiencing more in predictability.
During such times, people and businesses will always look for a safe haven. Somewhere to ride out such storms caused by change.
This is very true today, and the rock that is Jersey provides such a safe harbour. Jersey is a leading International Financial Centre, built on solid foundations with an enviable reputation among its peers.
Jersey is a Crown Dependency, with its own democratically elected government, a judicial system founded on common law principles and independent legislature. Since 1999, the government and its agencies have worked towards ensuring that Jersey is seen as a “good neighbour” to both the UK, EU and the wider international community.
Jersey offers flexible solutions for individuals and businesses, supported by an experienced and skilled workforce. These solutions are often tax neutral such that international cross border flows can move through Jersey to be taxed in the relevant jurisdiction. It has a well-regulated financial services industry, including a regulated trust and company services sector.
Furthermore, Jersey has been at the forefront of many global initiatives related to tax transparency and preventing money laundering and the financing of terrorism. For example, Jersey has long had a register of beneficial ownership for corporate structures. Whilst private, recognising an individual’s right to confidentiality, the register is open to relevant competent authorities, subject to an appropriate legal gateway being in place.
Jersey has also been an early adopter of CRS and partakes fully in initiatives such as BEPs, and broader tax transparency initiatives. International bodies, such as the OECD as well as including from within the EU, have reviewed and recognised Jersey as being largely compliant with such requirements. The same applies to its adherence to OECD led initiatives related to countering terrorist finance and preventing money laundering. Jersey has already adopted measures requiring the identification and verification of beneficial owners or controllers, including the need to understand why a structure is being established.
For individuals, Jersey can offer a well regulated jurisdiction for the safe custody of assets or for generational planning, particularly if the home jurisdiction is going through significant change. For businesses, Jersey affords the expertise to assist in international trade transactions utilising the benefit of Jersey’s tax neutral position allowing free capital flows with the tax levied in the relevant jurisdiction. Jersey also provides a base through which investors can pool their assets with similar investors and invest globally for higher returns.
With the new economic substance legislation providing further credibility to Jersey’s leading position as an international finance centre and will continue to be one of the leading destinations for individuals and businesses to place their assets and undertake business.
For entrepreneurs of the 60’s & 70’s, it's time to stop and think about how they wish their legacy business to continue in the future in terms of continuation, capabilities and desire of the next generation to take over the family business.
The Crown Dependencies, including Jersey, have all committed to bringing in legislation regarding economic substance in 2019. Fiduchi's Director of Operations Paul Coundley looks at one requirement of the legislation.
We're six weeks into 2020 and Brexit has happened. So now what do Jersey Financial Services and it's clients need to consider? It's time to look ahead to the rest of 2020 (and beyond) and consider what changes are on the horizon. However, whether anyone can truly do so with the clarity of 20/20 vision is questionable. What we do know is that the world in which our clients and we operate in continues to be one of uncertainty.
Fiduchi understands the importance of such stability. Fiduchi has been a trusted partner for its clients and their advisors for more than 25 years, ensuring that their assets are protected, their structures are managed correctly, and compliance is maintained in accordance with relevant regulations and legislation.
Being independently owned, Fiduchi is truly able to service the needs of clients, both individuals and businesses. Having recently opened a representative office in Dubai, Fiduchi is positioned to meet the needs of globally mobile families and international business in these turbulent times, particularly as they seek wealth structuring and innovative investment solutions.
So, whilst you consider which course to sail in these stormy times, set your sails towards Jersey, and Fiduchi. We look forward to assisting you with your wealth structuring, business planning or investment needs.