Europe

Jersey is a favourable jurisdiction for European markets, particularly in relation to investment products and wealth management vehicles such as trusts, foundations and partnerships,  as well as real estate, private equity and hedge funds.

European Markets

Here are a few of the ways we’re working positively with European markets:

• In 2020, Jersey’s combined financial services sector allocated £1.44 trillion of capital around the globe, increasing from £1.30 trillion in 2017, and Europe is the most dominant continent with Jersey supporting £31 bn Regional GDP across Europe (excluding the UK and Jersey which are accounted for separately). In addition, it was found that Jersey supports 504,000 jobs in the region. Read more about the research from the Centre for Economics and Business Research (Cebr) below.
• For funds, Jersey is a ‘third country’ from a European Union perspective and provides excellent third country access to the EU’s investors through National Private Placement Regimes (NPPR).

• Jersey’s financial services industry will continue to operate in both the UK and EU markets after Brexit as it did before. For financial services, Jersey has access to the EU market through bilateral agreements and arrangements with Member States, which are independent from the UK’s relationship with the EU.
• To demonstrate our forward-thinking commitment to international standards, our Island has signed:
  • 39 Tax Information Exchange Agreements (for example with Denmark, Germany, Austria, Italy, France and Latvia)
  • 13** DTAs (for example with Luxembourg, Malta and Estonia)

Jersey’s Contribution to Europe

Thanks to our investment products and wealth management vehicles, our work with the Europe markets benefits everyone.

Recent research from the Centre for Economics and Business Research (Cebr) has quantified the full extent of Jersey’s global economic footprint and our contribution to global value chains (GVCs), through the metrics of GDP, employment and wages. It’s clear that our financial services industry is adding significant value to European and global economies.

Understanding Jersey’s Relationship with the EU post-Brexit

What is Jersey’s relationship with the EU and UK?

It is important to understand that Jersey’s relationship with the United Kingdom (“UK”) and European Union (“EU”) is relatively unchanged by the formal withdrawal of the UK from the EU.

Jersey is a self-governing Crown Dependency of the UK. The Island has a constitutional relationship with the UK that has existed for over 800 years – a relationship that is not impacted by the UK’s departure from the EU.

In addition, Jersey is not, and nor has it ever been, a member of the European Union. Jersey’s relationship with the EU was enshrined in ‘Protocol 3’ of the UK’s Accession in 1972, and now in the UK-EU Trade and Cooperation Agreement (TCA) following the UK’s departure.

What will happen to Jersey’s financial services industry post-Brexit?

Jersey’s finance industry will continue to operate in both the UK and EU markets after Brexit as it did before. For financial services, Jersey has access to the EU market through bilateral agreements and arrangements with Member States, which are independent from the UK’s relationship with the EU.

Given that Protocol 3 excluded services, financial services provided by Jersey to the EU have always been treated as coming from a ‘third country’ for the purposes of EU financial services legislation.

Jersey’s agreements in respect of financial services with both the UK and EU Member States are fully functional and remain unchanged. It is anticipated that the UK and EU will enter a formal agreement in relation to regulatory co-operation matters for financial services. From a capital markets perspective, Jersey continues to enjoy access to EU markets and trading venues under the same conditions as it did before 31 December 2020. What’s more, free movement of capital remains a fundamental principle of the EU that extends
to Jersey.

Jersey and AIFMD II

In November 2021, as part of the broader package of measures within the Capital Markets Union, the European Commission finalised the draft amendment text in connection with the Alternative Investment Fund Managers Directive (AIFMD) in a set of amendments referred to as AIFMD II.

Sectors for Europe