Policy Framework for Jersey Financial Services Industry

A print-version pdf of this policy framework can be downloaded here
A video summarising the policy framework can be viewed on YouTube here

Foreword

Jersey has long been recognised as one of the world's most stable and successful international finance centres. For more than sixty years, those working in the financial services industry have helped individuals and businesses, domestically and internationally, to grow and prosper.

Our contribution to the global economy, in both developed and developing countries, is significant. We enable capital to move around the world, generating employment, taxation, and economic growth across hundreds of jurisdictions.

These international capital flows put Jersey in a powerful position to make a recognisable contribution to the world's efforts to become sustainable, and we are part of the Network of Financial Centres for Sustainability, a group which seeks to achieve the UN's Sustainable Development Goals and the Paris Agreement on climate change.

Jersey takes seriously the part it can play in driving positive change in the world, and will continue to adopt international standards, adapt to technological advances, and use our expertise to move towards a more environmentally and socially sustainable global economy.

Government's role is to provide leadership, to nurture relationships with our partners across the world, to encourage effective co-operation between stakeholders, and above all to provide a responsive and enabling business environment within which the core industry sectors, and innovation and enterprise, can continue to thrive.

This framework confirms Government's commitment to supporting the financial services sector, recognising its significant contribution to the economic wellbeing of the Island and all its residents. Even those Islanders who feel they have no direct connection with the industry will have benefitted from the improved public services, greater connectivity and wider economic prosperity that is facilitated by the presence of a finance industry which contributes a significant proportion of the Island's GVA.

Previous iterations of this framework have highlighted the resilience that Jersey demonstrated during economic downturns. To this we can add Jersey's resilience demonstrated in response to Covid-19 and Brexit.

We can have every confidence that we will meet any future challenges, and this iteration of the policy framework places emphasis on the opportunities that we have. By working together with our clients, and our partners in Jersey and across the world, Jersey will continue to be resilient, successful, and dynamic.

Senator Ian Gorst
Minister for Financial Services

December 2021

Introduction

Over the last 60 years, Jersey has built a successful, sophisticated, and resilient financial services industry with the support of a framework of domestic and international government policies covering areas ranging from as employment and the development of infrastructure to market access and compliance with global standards.

We have updated this policy framework with the intention of protecting and nurturing the strengths which have enabled the industry to thrive for six decades. We believe that our continued success will be based upon the continued co-operation and co-ordination of all stakeholders, and the Government's review has involved widespread consultation across government, regulatory organisations, and the industry, both in Jersey and outside the Island.

Policy Framework for Jersey Financial Services Industry report

Policy Framework

Set out within this policy framework are:

• our vision for the future of Jersey's finance industry
• and the strengths which remain at the core of the sector
• our strategic priorities, which are based on the our core strengths and which will enable our vision

Our Vision

Our vision is to create the environment required to enable the continued success of Jersey's financial services industry by facilitating its digital transformation, its continued compliance with global standards, and its transition into being a leading centre for sustainable finance.

Jersey's offer

Jersey's financial services industry is centred on four pillars: private wealth, funds, capital markets, and banking. These pillars are underpinned by Jersey's mature and developed financial ecosystem, which has depth in the skills and resource of its workforce and the digital capability of its businesses and the Island.

Private wealth

Jersey is an international leader for fiduciary services and is estimated to hold and manage assets of over £600 billion.

Funds

Jersey is recognised as a leading jurisdiction for private equity and real estate funds. It holds over £410 billion net asset value of regulated funds.

Capital markets

Jersey has the largest number of FTSE 100 and AIM companies outside of the UK and, together with Jersey companies listed on global exchanges, holds a market capitalisation of over £237 billion.

Banking

Jersey holds £130 billion in bank deposits across 20 international banks.

The financial services ecosystem

Jersey offers a full suite of specialist and expert advisory services which support its finance sector – including both blue chip and specialist legal, accountancy, compliance, data analysis, investment advisory and fintech firms

Over a quarter of Jersey's workforce are employed in the finance sector, and Jersey has a world-leading digital infrastructure, ranked first in the World Broadband Speed League.

Jersey's strengths

Jersey the jurisdiction

• A stable political system and economy with a government that fully supports the financial services industry
• An independent legislature with a comprehensive framework of financial services and product laws and regulations
• A location which is geographically close to Europe and the United Kingdom and in a time zone which is also well-placed to serve clients based in the Gulf States, North America, Far East and Africa
• An appealing and safe business and living environment for financial services firms, their principals and owners wishing to develop and build businesses in Jersey
• An internationally-compliant and attractive personal and business tax regime which provides an ideal platform for international investment activities

Jersey's world class infrastructure and ecosystem

• A robust and sophisticated risk-based regulator who is well-respected through its network and participation as part of the international regulatory community
• A business-friendly, outward-facing economy with a long tradition of trading in high quality services with customers from around the world
• An independent and expert judiciary with developed case law built on the principles of modern commercial law
• A deep pool of skills and experience with over 13,000 people employed in the financial services industry
• A resilient, modern, world leading digital infrastructure underpinned by the fastest broadband in the world

Jersey internationally

• A government that is committed to increasing Jersey's visibility in, and facilitating business flows with, priority global markets
• A trusted partner in a global network with a growing international treaty network and with its local industry participants commonly have offices across multiple jurisdictions
• A special constitutional relationship with the UK and economically complementary to the City of London and other finance hubs in the UK
• A respected member of the international regulatory community recognised for its adherence to international standards
• A leading jurisdictional expert in delivering transparency, client due diligence and combatting financial crime

Our Strategic Priorities

Our vision will be achieved by focusing on ten strategic priorities. On this page, each priority is explained, and an outline provided of how they will be delivered.

1. maintain and develop the four pillars of Jersey's financial services industry
2. enable Jersey to be a leading international financial centre for sustainable finance
3. harness the opportunities created by fintech and digitalisation
4. maintain an attractive and agile operating environment
5. maintain strong adherence to international standards
6. review and refresh Jersey's strategy for combatting financial crime
7. enhance Jersey's profile internationally
8. grow and deepen Jersey's footprint in new and existing markets
9. deliver strong and effective stakeholder cooperation
10. deepen and broaden the skills and expertise of Jersey's workforce

Stakeholders who will assist in delivering our priorities

Jersey's mature financial services ecosystem is underpinned by a sophisticated an expert governance framework. This involves stakeholders working together to protect and enhance Jersey's offer as a leading international finance centre. Our continued success will rely on strong cooperation between our key stakeholders.

Enablers

Government of Jersey, supported by stand-alone departments:

• Financial Services
  
• Financial Crime Strategy
• International Tax Policy
• Global and European External Relations
• Digital Economy
• Sanctions
• Cyber Emergency Response Team

Promoters

• Jersey Finance: promotional body for the Jersey financial services industry, with offices and representation in London, Dubai, Hong Kong, New York, Johannesburg and Shanghai
• Digital Jersey: economic development agency for Jersey's digital and fintech offering
• Locate Jersey: inward investment agency helping business and individuals locate in Jersey

Tribunals and enforcers

• States of Jersey Police: law enforcement with standalone Jersey Financial Crimes Unit, encompassing the Financial Intelligence Unit
• Attorney General: independent legal advisor appointed by the Crown to advise the States Assembly and act as public prosecutor. Supported by the Solicitor General and Economic Crime and Confiscation Unit
• Royal Court of Jersey: principal court of Jersey, in existence since 13th Century
• Viscount: Chief Executive Officer of the Royal Court whose principal function is to execute and enforce the orders of the court
• Channel Islands Financial Ombudsman: independent financial ombudsman, free of use to consumers

Regulators

• Jersey Financial Services Commission: independent financial services regulator and registrar of companies, delivering the day-to-day supervision and oversight of the financial services
• Revenue Jersey: public administrator and collector of taxes
• Jersey Data Protection Authority: independent data protection and information rights regulator
• Jersey Bank Depositors Compensation Board: independent depositor compensation scheme providing protection of up to £50,000 for deposits placed in Jersey
• Jersey Resolution Authority: independent bank resolution authority
• Jersey Gambling Commission: independent gambling regulator
• Jersey Charity Commissioner: independent regulator of charities registered in Jersey

Strategic Priority 1: Maintain and develop the four pillars of Jersey's financial services industry

We anticipate that private wealth, funds, corporate and capital markets, and banking will remain the four pillars at the core of Jersey's financial services industry, and we will support and nurture their development.

Private Wealth

We will work to ensure that the private wealth sector's high standards and world-class expertise are maintained and enhanced, and that it can access new markets and clients who are seeking the level of sophistication, regulation and governance that Jersey delivers.

Jersey is a leading centre for fiduciary and specialist private wealth services, with clients across 179 jurisdictions and responsibility for an estimated £600bn of assets under management. Our position is underpinned by our stable and well-established legal and judicial system - and grounded in trusted and long-lasting relationships with clients developed over generations. We deliver services which are based on sophisticated technical and financial expertise, supported by efficient administration.

We were the first international finance centre to develop comprehensive trust legislation, which has been used as the template by other jurisdictions. The Jersey Trusts Law continues to be updated to reflect best modern practice and standards, and the Jersey Courts are recognised as delivering leading precedents for the industry.

The Jersey foundation, a more recently-introduced product alongside the Jersey trust, enables us to offer an alternative to support clients in civil jurisdictions. These and Jersey partnership arrangements assist multi-jurisdictional families in the management of their family wealth.

Islamic finance

Our objective is to remain a leading centre for Sharia-compliant international investment.

Jersey has long been a preferred jurisdiction for Sharia-compliant wealth and financing structures. We have put in place guidance to give certainty

Family offices

Our objective is to ensure that our operating environment, regulatory framework and fiscal policies enable Jersey to remain a specialist centre for global family offices.

Jersey was one of the earliest jurisdictions to benefit from the trend for ultra-high-net-worth families to set up bespoke family offices to manage their international wealth activities. We remain a preferred jurisdiction with the choice of either third party management through Jersey's trust service providers or high-quality office space and skilled locally resident staff for in-house management. This enables family offices to meet international economic substance requirements.

Philanthropy

Jersey is committed to strengthening our proposition for the management of assets and structures which promote philanthropic or charitable objectives.

Philanthropy is a natural extension of Jersey's private wealth and corporate services. We are able to deliver the appropriate governance framework and fiduciary expertise for international structures with philanthropic or charitable objectives.

We will seek to leverage the natural synergies which exist between the environmental, social and corporate governance objectives of sustainable finance and our charitable and philanthropic framework. This echoes work undertaken elsewhere in Government including the growing reputation of Jersey's international aid programme and opportunities in development finance.

Funds

We will support and enable the continued growth and international success of our funds sector by adapting regulations and products which meet international standards and attract new markets and business.

Jersey has more than £410 billion in regulated funds under administration, and assets of a similar scale are held in private funds. In addition, we are a leading centre for the administration of private equity and real estate funds, UK real estate investment trusts (REITs) and have a growing offer in tech and venture capital funds. Jersey is also home to an increasing number of alternative fund and investment managers.

We are a significant conduit of liquidity and global capital, primarily to the UK and EU economies, but with a rapidly expanding US market.

Our funds products

Primarily focused on institutional and sophisticated investors, Jersey is able to meet the needs of a broad range of investors. Jersey's spectrum of regulatory regimes enables the degree of oversight to be matched to the risk profile of the market and the sophistication of underlying investors.

At the core of our offering is the best-in-class Jersey Private Funds (JPF) regime, launched in 2017 and aimed at professional investors. The market for JPFs has grown rapidly, reflecting their versatility, speed and ease of establishment, and their proportionate regulation.

Regulation and taxation for our funds sector is aligned to global standards and obligations. Jersey is a hub for funds looking to reach EU investors, with national private placement regimes providing access to professionals and institutions for whom the full requirements of the Alternative Investment Fund Managers Directive (AIFMD) are unnecessary. Jersey is in a very strong position to offer the AIFMD third-country passport when it is introduced: Jersey was the first non-EU jurisdiction to implement an AIFMD regime assessed by the European Securities and Markets Authority as fully compliant.

We offer a range of legal vehicles including limited partnerships, companies (including cell companies), unit trusts, and, most recently, limited liability companies.

We have become a cross-border fund leader, reported to have the fourth highest market share of global fund authorisations.

Our funds ecosystem

Jersey offers funds a full complement of support services, including modernised digital platforms, specialist investment advisory, corporate and funds administration, legal and accountancy, governance, director, treasury and payment services.

In recent years, fund managers and investment managers in the alternative market have relocated their headquarters and, in some cases, their principals to Jersey, enhancing an already highly competent ecosystem.

We are committed to ensuring that Jersey continues to be aligned and compliant with the international markets it serves, and to ensure that funds are able to seamlessly migrate to Jersey.

Corporate and Capital Markets

We will help Jersey remain the jurisdiction of choice for international listings on the alternative market. We will also support the sector's continued evolution and delivery of innovative solutions and products.

Our market capitalisation is more than £237 billion, with Jersey companies listed on global exchanges across Europe, Asia and North America, and we have the highest number of FTSE 100 and AIM companies registered outside the UK.

Our offer complements that of the City of the London., As a tax-efficient jurisdiction for foreign income and capital, we are a stable and secure location from which to channel liquidity and capital to global markets and deliver inward investment into the UK and Europe.

Through the Channel Islands' stock exchange, The International Stock Exchange (TISE), Jersey is now responsible for more than 40% of the UK real estate investment trust (REIT) market. Jersey is globally recognised as the preferred jurisdiction outside of the EU and the UK for high yield bonds.

Sustainable listings

A dedicated market segment for investments that promote environmental, social and sustainable objectives, TISE Sustainable, has been introduced in Jersey and is a partner to other sustainable stock exchanges. Our objective is to develop a green bond offering which can compare in size and profile with our existing bond offer.

The Jersey company (JCo)

We are committed to ensuring JCo position as the vehicle of choice for international transactions is maintained and enhanced.

The Jersey company, or JCo, is a successful method of harnessing global investments since it is flexible for capital distributions and corporate restructurings. JCos are frequently listed on the London Stock Exchange.

Our corporate services

Over the past decade, our corporate services industry has grown and evolved. Many of our service providers now have a global footprint and offices across many jurisdictions.

Our expertise in delivering listings, corporate finance and merger and acquisitions work is on a par with the City of London. We are recognised for our expertise in corporate service providers, who administer corporate structures, corporate remuneration schemes and their global assets.

Banking

We will ensure that opportunities are taken to broaden and deepen the range of banking services available to industry, with banks adopting a risk-based decision-making framework tailored to Jersey's profile as a jurisdiction.

Jersey's banking pillar has breadth and diversity, with 20 international banking licensees, which span a variety of jurisdictions and operate across institutional, corporate and private banking, collectively holding more than £130bn in deposits. Jersey remains open to granting additional banking licences, whether to global or challenger banks.

The services provided by Jersey's banks are the foundation of Jersey's private wealth, funds, corporate and investment management sectors. Jersey banks have strong links through the City of London and serve customers around the world. More than half of deposits held in Jersey are non-sterling.

The sector is supported by a robust regulatory system which has developed significantly since the 2008 financial crisis. This is delivered through co-ordinated supervision by the Jersey Financial Services Commission, the Jersey Resolution Authority, and the Bank Depositors' Compensation Scheme. These authorities ensure that risks are managed appropriately, and that approaches are fully co-ordinated with regulators in other jurisdictions.

Transformation of the banking sector

Banking services and client interaction have undergone a technological transformation. Challenger banks have diversified the industry, and alternative payment and money service providers have transformed the way money is transferred. Banks in Jersey have responded proactively to these opportunities and, as a recognised part of the UK payments system, Jersey offers the protections of the UK system.

These factors put Jersey's banking sector in a good place to continue to operate at the heart of our finance sector.

Government will work to ensure that Jersey remains at the forefront of corporate and private banking and a jurisdiction of choice to base the wealth offering of global institutions.

Strategic Priority 2: Enable Jersey to be a leading international financial centre for sustainable finance

We will champion and enable Jersey as a leading international finance centre to support the drive to carbon net zero.

Jersey sees supporting the global transition to carbon net zero as central to the role we play as an international finance centre. We can mobilise global capital to meet the Paris Agreement's goals and unlock the trillions which will drive the transition to carbon net zero.

With our expertise in good governance, and our reputation for nimble and intelligent adoption of new standards and rules, Jersey's finance industry is well placed to meet the needs of this new form of finance.

We have a strong anti-green washing regime overseen by our regulator, which places a clear obligation on funds and investment businesses – and their industry providers – to demonstrate how they meet their environmental, social and governance (ESG) claims.

Our finance industry is already delivering to the international market in excess of $400 million low carbon and renewable energy, and social housing funds.

Jersey's commitment

The Island has committed to align with the climate goals of the Paris Agreement and has declared a climate emergency with the agreed aim of delivering a transition plan to becoming carbon neutral by 2030 and carbon net zero by 2050.

Achieving these targets will involve transforming our local economy. We are committed to undertaking a review of Jersey's domestic policies and laws to ensure that they comply with international sustainable development targets and objectives. An environmental, social and governance investment mandate is in place for Government's funds.

Jersey for Good

Through Jersey Finance, the industry has established an ambitious strategy, Jersey for Good, which states that "By 2030, Jersey will be recognised by its clients, key stakeholders and other partners as the leading sustainable international finance centre in the markets it serves".

The Jersey for Good strategy and strategic pathway involves industry, government and regulator co-ordination and shared support to deliver innovation, education and communication.

The Government will work with industry and regulator to deliver a legislative and regulatory framework which aligns our industry to the international standards and obligations for sustainable finance, and which supports industry's transition and vision. Government will build partnerships with international agencies and other governments and become an active participant in the international sustainable finance community, and our regulator is a participating member of the Network for Greening the Financial System.

Strategic Priority 3: Harness the opportunities created by fintech and digitalisation

We will support the adoption and application of new technologies across Jersey's financial sector, facilitate innovation and maintain a strong underlying infrastructure.

Our digital platform

Jersey is well placed to harness digitalisation. The island is a world-leader in connectivity and digital infrastructure, with the fastest broadband in the world and 100% 1GB fibre available to every Islander. Our infrastructure can process substantial volumes of data at high speed, which is critical for those businesses seeking to undertake high-intensity, time-critical technological development.

Jersey's data protection regime and legislation has been assessed as fully compliant by the European Commission for the purposes of GDPR, meaning firms can rely on the free flow of data between the Island and EU member states. Jersey has also established the Cyber Emergency Response Team and will establish a new telecoms security framework to make sure Jersey remains a safe place to live and work.

Fintech

Financial technology is already well established in Jersey, and firms are embedding technological solutions which enhance their products and services, increase efficiencies, and provide greater transparency.

With its digital environment, Jersey is an attractive location for both innovative start-ups and established businesses, and there is a thriving fintech cluster, providing opportunities for partnerships, knowledge sharing and innovation. There is a growing skills base and, building on the work of Jersey's Digital Academy, there will be further investment in training and attracting talent which aligns with Jersey's needs.

The Jersey for Fintech initiative is a collaboration involving Government, industry, and both Digital Jersey and Jersey Finance. Its objective is to enhance the digital ecosystem by attracting and supporting fintech specialists and encouraging the adoption of digitalisation in established finance firms.

The work of Jersey for Fintech is supported by the regulator, which is promoting digitalisation as one of its three strategic anchors, and is working with industry and regulators in other jurisdictions to support the growth of regtech.

Government, in conjunction with the industry and regulator, will review Jersey's legislation and regulations to ensure that they support these initiatives. The initial focus will be on enabling regulatory technology solutions for client on-boarding and delivering a framework for new digital asset classes.

Strategic Priority 4: Maintain an attractive and agile operating environment

We will protect and enhance our jurisdictional attractiveness to successful businesses and skilled professionals.

The success of our finance industry and its ecosystem is reliant on a wider range of factors. Collectively, they make businesses and people want to operate from Jersey. Government's ambitions are set out in our Common Strategic Policy and rolling Government Plan, which seek to ensure we continue to have a strong and attractive environment.

Safe environment

We will continue to adopt policies and laws which protect rights and ensure that the Island is a safe and attractive place to live and work.

Diverse workforce

We will ensure our talented workforce can develop their skills and experience within the Island, and build their futures in the Island, or return to the Island with knowledge and experience learnt elsewhere. Alongside skills development, we will seek to enable Jersey's workforce to continue to grow in diversity, expertise and experience.

Taxation

We will ensure our fiscal policies support Jersey as a business-friendly environment with attractive business and personal tax rules, and a user-friendly, digitalised modern and accessible tax service.

Transport links

The Government will support existing air and sea links to Europe and the UK to maintain connectivity with international markets and clients. We will endeavour to attract new airlines and encourage existing airlines to increase their routes to the Island.

Office space

Office space will continue to be improved and renewed to adapt to changing modes of working, and to support staff wellbeing and the Island's sustainable environmental goals.

Financial regulation

We will continue to support the Jersey Financial Services Commission in delivering its strategic ambitions of: facilitating business integrity; harnessing technology and influencing the digitalisation of financial services; and developing its people, systems and capability to be a high performing organisation.

Strategic Priority 5: Maintain strong adherence to international standards

We will maintain Jersey's reputation and status as a jurisdiction that complies fully with international standards.

Jersey has long been an early adopter of best practice and swift to implement international standards and initiatives. This has been a point of differentiation and helped reinforce our reputation as a jurisdiction of quality and substance.

Strong regulation and intelligent international compliance are critical to our competitive offering; a priority shared by government, industry and regulator, and a position consistently recognised by international evaluation bodies.

This has been achieved through the close co-operation of policy drafters, independent regulators and enforcement bodies in areas including financial crime, prudential regulation and international taxation.

Jersey operates an internationally compliant rules-based tax regime. This is supported by Revenue Jersey through customer service and appropriate compliance work, providing industry with tax certainty and easing the burden of tax compliance where possible.

Jersey also has a robust legislative and regulatory data protection framework, which is fully GDPR compliant and allows for data sharing.

Together, Government, industry and the regulator aim to deliver the Island's international compliance in a form that is agile, proportionate and effective. We will ensure that our regulation responds to changing international expectations, and that it is implemented in a way that is proportionate to our industry and its clients.

We will continue to align Jersey's regulatory framework to those of our financial markets, to avoid creating unnecessary duplication or differing obligations for industry.

Strategic Priority 6: Review and refresh Jersey's strategy for combatting financial crime

We will develop and publish a revised national strategy for combatting financial crime, through which we will develop strategic initiatives to demonstrate Jersey's commitment to strengthening its defences against money laundering and terrorist financing.

With a reputation for being a trusted and responsible global citizen, Jersey is fully committed to the global fight against financial crime. To ensure the continued integrity of the global financial system, Jersey must play its part in successfully combating financial crime. This can only be achieved through co-operation between industry, Government and the regulator.

Risk understanding and risk appetite

Jersey published its first national risk assessments of money laundering and terrorist financing in 2020. Working with key stakeholders and industry, Government intends to develop a more detailed risk understanding and publish a national risk appetite statement for Jersey. 

Resources and industry engagement 

Jersey has dedicated financial crime policy and operational units across all its agencies who work collaboratively together and are co-ordinated centrally. We will deliver an enhanced engagement programme with industry to further develop our collective risk understanding and provide further clarity on the application of our regulatory regime and to examine international trends.

International standards and assessment 

Jersey has consistently been an early adopter of the standards set by the Financial Action Task Force (FATF) and remains heavily involved in the work of the FATF, and MONEYVAL (the European FATF regional body of which Jersey is a member).

Jersey has achieved positive results in international assessments by MONEYVAL and by the International Monetary Fund and is committed to continued positive performance in international assessments.

In compliance with international standards, there are many significant advantages that differentiate Jersey from its peers, from a world-leading beneficial ownership register to a strong trust or company service provider regulatory framework. We are committed to supporting the continued adherence to global standards through additional resourcing, identifying digital solutions which will help Jersey meet its international financial crime obligations, and ensuring that our financial crime policies remain both proportionate and effective. 

Strategic Priority 7: Enhance Jersey's profile internationally

Through international engagement, we will enhance relationships, develop trade opportunities, and support the design and delivery of new global standards for the finance sector, strengthening Jersey's status as a world-class finance centre.

Over the past decade we have worked to develop, maintain and protect our international relationships, and Jersey has earned a reputation for being a trusted and responsible global citizen.

Brexit and the continuing focus on international finance centres make it essential that Jersey continues to engage, explain and influence our political and regulatory counterparts, particularly in the markets we serve. To do this effectively, we must listen both to industry and our key international partners in those jurisdictions through which our financial services operate.

UK relations

Jersey's close constitutional relationship with the UK means we have direct access and engagement with UK officials, UK Ministers and MPs. As a Crown Dependency, we are also offered the opportunity to have the UK's international treaties extended to the Island.

Following Brexit, new trade and international political engagement opportunities for Jersey are being explored with the UK. These include the extension of both the UK's post-Brexit global free trade agreements and the Paris Agreement.

We will protect this relationship and enhance our political engagement with the UK and its global network.

European relations

Through both direct engagement with EU member states, and via our Channel Island Brussels Office, we seek to maintain and build on our good working relationship with EU institutions and continued access to European markets. We will continue to dedicate resource and our efforts to maintaining this relationship.

Global relations

We continue to build global political relationships to help drive trade opportunities with high growth markets We contribute to participate in the development and implementation of global initiatives to enhance standards in regulation and compliance across the world through our membership of international bodies such as FATF and the OECD Inclusive Framework on base erosion and profit shifting.

Regulatory engagement

The Jersey Financial Services Commission plays an important role in influencing and framing the international standards and rules that apply to Jersey. It is an active member of the International Organisation of Securities Commissions (IOSCO), works proactively with European and UK supervisory authorities such as the Financial Conduct Authority, and has several regulator-to-regulator agreements with our financial services market partners.

We will look to join and contribute to the new international platforms for sustainable finance and continue to participate in the international standard-setting platforms for tax, financial crime and prudential regulation.

Strategic Priority 8: Grow and deepen Jersey's footprint in its new and existing markets

We will continue to harness the strengths that have bought Jersey success, and we will apply them to support growth in key markets and develop new products and services.

Jersey's long-term strategy is to diversify into global markets which complement its traditional UK and EU-focused funds and private wealth business. The diversification will be through both UK-intermediated and directly acquired opportunities and aligns our strategy with changes in wealth creation: around 90% of global economic growth in the next 10 to 15 years is expected to be generated outside of Europe. Brexit has given added focus to this activity.

The work of Jersey Finance is at the core of this strategy: with offices promoting Jersey in Dubai, Hong Kong and New York; representation in London, Johannesburg and Shanghai; and a virtual office in Mumbai.

We will look to enable opportunities for Jersey to support new financial service products and services within the framework of our island risk appetite.

Enabling growth

Jersey will continue to invest in developing its global reach, continuing to support established hubs and examining the potential for expanding activities in Africa, South East Asia and, through London, globally. We will ensure that the strategies of Government, partners and industry remain aligned and that joint promotional initiatives in target markets are supported and co-ordinated.

To help stimulate and facilitate innovation Jersey will work to enable faster delivery to market of new opportunities. Support will focus on business enablement and the delivery of the required legal and regulatory framework.

We will prioritise those new services and products that are best suited to our particular skills and infrastructure, and which will help deliver the most opportunities for the Island.

Anticipated growth by sector

Funds

• Funds are expected to continue responding to the constantly increasing appetite of global investors. Our focus will remain on the alternative fund market, and fund products directed at global institutional and sophisticated investors. We will look to support the move into new fund products and fund services, and will seek to attract new asset managers and sponsors.

Banking

• We will encourage new banks which serve different markets and offer new means of banking, to locate to the Island to enable the diversity and productivity to continue to thrive.

Private Wealth

• We will help the private wealth industry to nurture the relationships that they are building with the next generation of clients who are in our target markets.

Capital Markets

• We will support Jersey's position as a leading jurisdiction for international debt listings by developing our sustainable bond market and continuing to protect our JCo brand and reputation.

In encouraging this growth and diversity, we will continue to preserve our reputation as a quality jurisdiction reputed for delivering internationally compliant expert services, in a manner consistent with our risk framework.

Strategic Priority 9: Deliver strong and effective stakeholder co-operation

Jersey's size, and judicial and legislative independence, enables us to adapt and evolve our regulation in response to the needs of our financial services sector and its markets and clients through the close co-operation of government, regulator and industry. We will work to retain this agility through continued strong and effective co-operation.

An agile partnership

Government regulator and industry routinely work closely together and recognise a common overarching objective.

Jersey Finance acts as a formal conduit between industry and Government. Itco-ordinates specialist working groups which deliver industry's business case for change and also policy changes required by Government and the regulator. Commitment to a common purpose, clear and considered communication, and the co-ordination of our activities and policies are key to our success and our ability to operate effectively.

Our focus for the future

We will continue to improve the channels of communication and the processes for delivering efficient and tailored solutions that best meet the Island's needs. This will be achieved through increased industry engagement, the enhancement of our data analysis through better data-sharing systems and new data analytics tools. With a shared understanding of Jersey's risk appetite, Government will support this through the identification, prioritisation and delivery of targeted legislative developments.

Strategic Priority 10: Deepen and broaden the skills and expertise of Jersey's workforce

We will ensure Jersey's finance sector has a workforce equipped with the skills needed for the future

The breadth and depth of talent across the 13,000 people who work in Jersey's finance industry is the reason we can deliver our specialist services to private and institutional clients. It is what distinguishes Jersey and ensures that we have real substance.

Our ability, as a jurisdiction, to provide a multidisciplinary approach to meeting the wide range of sophisticated client needs with professionalism and adaptability. also creates an environment which is attractive to those looking to hone and develop their expertise.

The skills Jersey needs are constantly evolving, particularly to reflect clients' expectations. There is a greater emphasis on ESG as a complement to financial return, a trend that we expect to increase in the private wealth sector as assets pass through multigenerational transfer, and in the funds sector as institutional clients shift to new mandates.

Wider market trends, such as the opportunities created by digitalisation and the use of data will need individuals who can lead on and embrace these new areas and champion innovation. Regulatory and taxation requirements, including those agreed internationally, will require more people with the skills to advise on, implement, and meet compliance with new standards in a manner that is meaningful and proportionate.

Embracing our skills

Jersey will invest in creating a workforce with the skills for the future. We will do this through a collaborative programme between Government, the regulator and industry that identifies the skills needed, and seeks to attract, retain and develop the professionals required.

The programme will consider the needs throughout people throughout their working lives and its scope will include the provision of effective training, promotion of career paths, and support for individuals who wish to spend parts of their career off-island.

An integral part of the work will be embracing the skills of a diverse workforce, capitalising on the sector's knowledge and skills, and challenging existing practice to provide the best possible service to Jersey's global client base.

In addition to supporting the development of islanders' skills, and in recognition that Jersey's population will always be finite, we will also examine its approach to outsourcing non-core roles, where this is consistent with substance requirements and wider population policy.