Jersey is almost uniquely placed to help bridge the Brexit gap and ensure investment into and out of the UK can continue seamlessly and unhindered. A British Crown Dependency that is not part of the UK or a member of the EU, Jersey is currently part of the EU Customs Union for the purposes of trade in certain goods by virtue of Protocol 3, an agreement that exists because of the UK’s membership of the EU. That arrangement will cease with the UK’s membership of the EU.
However, financial services have always been outside the scope of Protocol 3 and that will not change because of Brexit. Jersey has access to the EU through its own bilateral agreements, which are independent from the UK’s EU relationship, and is able to market financial services to there because they meet requirements imposed by the EU.
Jersey has made significant preparations to mitigate the impact of Brexit. We are in a strong position to continue to play a positive role in supporting UK outward and inward investment and support the UK’s global ambitions in the longer-term too.
In terms of accessing EU investor markets, for instance, Jersey is a “third country”. As such, Jersey will, after Brexit, maintain access to EU markets – courtesy of existing bilateral agreements between Jersey’s financial regulator the Jersey Financial Services Commission (JFSC) and the financial regulators in 27 EEA States.
These agreements enable the island to offer a strong and flexible regulatory solution for non-EU fund managers through National Private Placement Regimes (NPPRs), which have proven highly successful. Today there are more than 170 non-EU managers making use of this route to market.
Jersey’s strong constitutional ties to the UK mean it is also well-placed to enable ongoing access to UK investors and opportunities. Many investors in Jersey funds are based in the UK, and Jersey’s access to them will remain unchanged. In March 2019, Jersey signed a memorandum of understanding with the FCA to ensure that Jersey funds can continue to be accessed by UK investors, regardless of the outcome of Brexit.
It is well placed to provide the right solutions, a stable platform and a certain environment, allowing investors in London, the UK, the EU and further afield to look to the future with confidence.