Investment Fund Management - Jersey Advantages
An introduction to working with us




www.ogier.com
Bahrain • British Virg...
Ogier is one of the world’s leading providers of
offshore legal and fiduciary services employing over
800 professional and...
Introduction
                  Jersey benefits from a highly developed             locally in Jersey have resulted in the ...
Personal and family factors
                         The largest of the Channel Islands, Jersey is         Jersey has a dr...
Business framework
                    Jersey provides a particularly constructive        Whilst a fund manager is buildin...
Moving the team
                      Jersey is not a member of the European Union,       •   the associated establishment...
Employee incentives
“a leading            A key advantage of operating offshore is              are often easier to implem...
Ogier - Who We Are
                       Ogier is one of the world’s leading providers
    “one of the                   ...
Ogier - Client Service Proposition
“committed     We are committed to providing the best available                   •    ...
Investment Fund Management - Jersey Advantages
Investment Fund Management - Jersey Advantages
Investment Fund Management - Jersey Advantages
Investment Fund Management - Jersey Advantages
Investment Fund Management - Jersey Advantages
Investment Fund Management - Jersey Advantages
Investment Fund Management - Jersey Advantages
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Investment Fund Management - Jersey Advantages

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Investment Fund Management - Jersey Advantages

  1. 1. Investment Fund Management - Jersey Advantages An introduction to working with us www.ogier.com Bahrain • British Virgin Islands • Cayman Islands • Guernsey Hong Kong • Ireland • Jersey • London • Tokyo
  2. 2. Ogier is one of the world’s leading providers of offshore legal and fiduciary services employing over 800 professional and support staff. The Group has a presence in nine jurisdictions around the world, namely Jersey, Bahrain, the British Virgin Islands, the Cayman Islands, Guernsey, Hong Kong, Ireland, London and Tokyo. Ogier provides advice on all aspects of Jersey, BVI, Cayman, and Guernsey law and associated fiduciary services through a global network of offices that covers all time zones and key financial markets. We are instructed by 80% of the top 50 global law firms and 60% of the top 50 banks.
  3. 3. Introduction Jersey benefits from a highly developed locally in Jersey have resulted in the current “...in the top investment fund industry with a +30 year track trend of an increasing number of investment division...” record of success. The Island is recognised by fund managers seeking to establish a physical the International Monetary Fund (“IMF”) as being business presence in Jersey. (International in the “top division” of global financial centres Monetary Fund - (both onshore and offshore) (September 2009) In deciding whether to establish a fund September 2009) and is one of the leading European jurisdictions management business in Jersey, a number of for the investment fund industry. personal, family and business questions will be of key importance. In our experience, many fund Policy developments in relation to the fund management professionals have found Jersey’s management industry both internationally and answers to these questions extremely positive.
  4. 4. Personal and family factors The largest of the Channel Islands, Jersey is Jersey has a dramatic and beautiful coastline “excellent schools... the most southerly island of the British Isles and has recently been recognised as a RAMSAR world heritage site... and has a sophisticated and diverse society. world heritage site. Michelin-starred The economy is structured around professional restaurants... financial services, a boutique hospitality industry The varied landscape and maritime setting outdoor lifestyle” and premium quality maritime production and provide the perfect environment for a wide agriculture. It has a population of around 87,000 range of leisure pursuits. From sailing and and is known for its outstanding natural beauty. surfing to golf, and from petanque to rugby, Jersey is a regular competitor on the British and “a remarkable Self-governed by the States of Jersey in all international stage and hosts numerous local place to live” matters of local law and taxation, its social events from the Jersey Marathon to stages of infrastructure mirrors the best of the United cycling’s Tour de Bretagne. Kingdom. Jersey has a highly regarded health service, which works closely with its UK Jersey also stages a variety of musical and counterparts. cultural events and benefits from a number of spa hotels and Michelin-starred restaurants. In education, Jersey has a range of excellent states-funded and private sector schools whose Jersey’s buoyant industries, outdoor lifestyle students regularly achieve very highly at A Level and very high standard of living make it a unique or international baccalaureate in relation to UK and remarkable place for professionals and their league tables and proceed to study at the top UK families to live. universities. Ogier can introduce fund manager principals, Jersey has excellent transport connections to professionals and their respective families to France, the UK, Switzerland and elsewhere specialists in personal relocation services. in Europe with regular daily flights and ferry services offering a wide number of routes and reflecting Jersey’s Anglo-French heritage. Flights to Gatwick take 40 minutes. 4 www.ogier.com
  5. 5. Business framework Jersey provides a particularly constructive Whilst a fund manager is building up its physical “particularly business and regulatory environment for the presence in Jersey, Ogier Funds Services can constructive establishment of investment fund management provide full operational support to meet the business and businesses. This mirrors Jersey’s policy regulatory compliance requirements of the regulatory commitment to welcome high value financial relevant JFSC codes of practice. Ogier is also environment” services industry businesses establishing a able to arrange the provision of dedicated, physical presence on the Island. In the business fully furnished serviced office accommodation planning stage of establishing fund management to ensure operational continuity for the fund operations, Ogier is delighted to facilitate the manager whilst it establishes its own fully “internationally introduction of the principals to key executives functioning office. From mid 2010, these fully commended” in the Jersey Financial Services Commission, serviced offices will be available in Ogier House, Population Office, Tax Office and other relevant a bespoke, state-of-the-art newly built premises government departments. in the heart of St Helier’s Esplanade district which will form the largest single occupancy “full operational In relation to financial services regulation, an building in the Channel Islands. Ogier House support” investment fund manager will be authorised and will provide circa 100,000 square feet of office subject to the ongoing regulatory supervision accommodation in which space has been of the Jersey Financial Services Commission reserved for fully serviced offices for Ogier (“JFSC”) for the purposes of providing investment funds clients. funds services business under the Financial Services (Jersey) Law 1998. Jersey’s financial sector regulation and JFSC supervision were commended by the IMF of being of a “high standard” and complying well with international standards (September 2009). Within that internationally commended framework the JFSC adopts a responsive, pragmatic and user-friendly approach. Ogier has excellent relations with the JFSC and a demonstrable track record of achieving tailored, client-specific solutions to regulatory questions in expedited timescales. Investment Fund Management - Jersey Advantages 5
  6. 6. Moving the team Jersey is not a member of the European Union, • the associated establishment of a business “government but applies equivalent principles of freedom of in Jersey generating local tax revenues and policy to establishment and free movement of employees, providing employment whilst not adversely encourage subject to some local licensing requirements in impacting upon local resources. appropriate relation to housing and businesses with a local inward physical presence. The successful principal would generally be investment” expected to purchase a Jersey property of at In relation to personal accommodation, least £1,000,000 in value, although there are authorisation to establish residency will be some houses and apartments available below obtained from the Population Office in respect of this level. persons on the fund management team who do not have a prior relevant connection to Jersey. In employing the professionals required for the The Jersey government policy to encourage fund management operations, where the required appropriate inward investment by including skill-set cannot be readily found in Jersey, an high net worth principals of fund management application is made for the post to be filled businesses guide the approach of the Population by “essentially employed” individuals, which Office. permits the business to recruit the necessary professionals from outside Jersey who have the For the high net worth individual principals of required skill-set. the business, approval for residency proceeds according to the following criteria: Such essentially employed professionals will also benefit from access to a wider range of quality • likely contribution to Jersey tax revenues personal accommodation than would otherwise (at present this would be in the region be the case. of £100,000 per annum although the Population Office is also willing to take Individual employees residing in Jersey as a account of related employment creation result of being “essentially employed” do not opportunities); have to satisfy a minimum local income tax contribution. The factors taken into account in • relevant business and social background; granting “essentially employed” status include the expected economic contribution of the • the number of dependants and the extent employer and the qualifications of the employee. to which these persons may in time acquire In a significant policy development, the Jersey local housing qualifications; authorities have demonstrated an increased willingness to grant “essentially employed” • the total net worth of the application; status to new businesses that meet the criteria for establishing a presence in the Island. These • any other non-economic benefits for Jersey; individuals are subject to local tax on their and worldwide income at a headline rate of 20%. 6 www.ogier.com
  7. 7. Employee incentives “a leading A key advantage of operating offshore is are often easier to implement in an offshore offering” that investment fund managers are able to environment where the complex employment incentivise and retain key local and onshore and tax legislation of other jurisdictions is not employees using offshore employee benefit applicable. Ogier has a leading employee trusts or international pension structures. These benefits administration offering. methods of providing employee benefits to staff Local laws “political and economic Jersey business laws such as the companies law, managers establish in Jersey for its political stability... robust limited partnerships law and employment law are and economic stability, judicial independence and familiar based on the equivalent English laws but benefit and competence and robust and familiar laws. laws... award from additional, business-focused innovations Ogier’s award winning, full service Jersey legal winning legal and operational flexibility. Investment fund offering can advise on all these areas. offering” Local Tax Stamp duty is payable on the acquisition and Corporate tax financing of Jersey property and a capped “income The income profits of a Jersey investment fund probate duty is payable on the registration of (corporate)... management company are taxed at a rate of Jersey wills. taxed at...0%” 0%, provided it is regulated for the conduct of fund services business as an investment fund Jersey’s fiscal stability and tax certainty for manager. There is no corporate taxation of resident fund managers is demonstrated by the capital gains in Jersey. headline rate of income tax having remained at 20% since circa 1940. In contrast to other jurisdictions, Jersey “fiscal stability social security contributions are capped for Whilst the general headline rate of Jersey and tax both employer and employee. Employer income tax is 20%, banded headline rates apply certainty” contributions are levied at 6½ % on the first for fund management principals who are high net £43,000 (approximately) of salary and employee worth individuals under the high value residency contributions are levied at 6% to the same salary rules, as follows:- level. Personal Tax • all Jersey source income is taxed at 20%; Jersey has a straight-forward personal tax • for non-Jersey source income: “straight-forward • the first £1m is taxed at 20%; personal tax” regime. Generally only income is subject to taxation in Jersey and therefore there are: • the next £500k is taxed at 10%; and • the balance is taxed at 1%. • no wealth taxes; • no capital gains taxes; Deemed distribution rules may also apply in • no gift taxes; and respect of Jersey resident owners of the fund • no inheritance taxes. management company. Principals may wish to obtain specialist tax advice for detailed worldwide tax planning. Investment Fund Management - Jersey Advantages 7
  8. 8. Ogier - Who We Are Ogier is one of the world’s leading providers “one of the Who We Act For of cross-border legal and fund administration world’s leading Ogier acts for many of the world’s leading services. Headquartered in Jersey, the firm providers of investment fund houses and we include the currently employs over 830 professional and cross-border following as representative clients: support staff located in nine international offices legal and fund including Jersey, BVI, London, Dublin, Hong administration Aladdin HSBC Investment Kong, Tokyo, Bahrain and Cayman. services” Funds We provide a full range of specialist legal Aberdeen Property UK Index Ventures services in relation to Jersey and other offshore Aegon Active Value Intermediate Capital funds and managers and have developed a Group multi-jurisdictional investment funds practice Arminius Kapital Investindustrial comprising over 80 investment fund lawyers. We Ashburton JP Morgan Asset are one of the largest independent professional Management and back-office service providers who are not Aviva Investors Kleinwort Benson affiliated with a bank or financial institution and have strength in depth to handle the largest, Axa Institutional Legal & General most demanding and complex offshore fund Barclays Investment Liquid Realty Partners transactions across all time zones. Funds Beacon Capital Lloyds Banking Group We are the only full service, integrated legal and Partners fund administration provider in Jersey. BlackRock UK Macquarie Our Strategy Capital & Regional Man Investments Our investment funds strategy has been to CB Richard Ellis Marathon Asset develop a model which is capable of providing Management fund promoters with a single outsource provider Challenger Merrill Lynch for full service investment fund offshore legal Management Services advice and specialist administration requirements China Real Estate Mezzvest in each of the key offshore jurisdictions for Opportunities Plc investment funds of Jersey, Guernsey, BVI and Cinven Moorfield Group Cayman. Coller Capital RREEF UK Industrial In the last four years we have acted in relation to Credit Suisse Schroders over 1,500 offshore investment vehicles and have Dexion Capital Société Générale significant experience with listed and non-listed Duke Street Capital Standard Life funds and their managers investing in all asset Investments classes. Ogier has established in aggregate in EQT Swiss Re excess of 5000 investment structures which in total have attributable funds under management Goldman Sachs Asset The Lend Lease exceeding US$200 billion. Management Company Henderson Central UBS London Hermes Property 8 www.ogier.com
  9. 9. Ogier - Client Service Proposition “committed We are committed to providing the best available • Customised, client specific operating to providing integrated offshore legal and administration procedures the best” services. Our combined offering distinguishes • Flexibility and transparency in relation to fee itself for its commercially minded and client- charging arrangements focused approach which is based on the • Significant investment in fund administration following: systems • Partner led, dedicated client teams • First class lawyers and professional administrators with high staff continuity This briefing provides a general summary only of this area based on the current law and practice in Jersey at the date of writing and is subject to changes therein. It does not purport to be comprehensive and does not constitute legal or tax advice that may be relied on. Specific, professional advice should be sought on each occasion. Investment Fund Management - Jersey Advantages 9

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