Investment Fund Management - Jersey Advantages
An introduction to working with us
Bahrain • British Virgin Islands • Cayman Islands • Guernsey
Hong Kong • Ireland • Jersey • London • Tokyo
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.
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
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.
in the “top division” of global financial centres
Monetary Fund -
(both onshore and offshore) (September 2009) In deciding whether to establish a fund
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.
Personal and family factors
The largest of the Channel Islands, Jersey is Jersey has a dramatic and beautiful coastline
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.
The economy is structured around professional
financial services, a boutique hospitality industry The varied landscape and maritime setting
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.
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.
Jersey provides a particularly constructive Whilst a fund manager is building up its physical
business and regulatory environment for the presence in Jersey, Ogier Funds Services can
establishment of investment fund management provide full operational support to meet the
businesses. This mirrors Jersey’s policy regulatory compliance requirements of the
commitment to welcome high value financial relevant JFSC codes of practice. Ogier is also
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
introduction of the principals to key executives functioning office. From mid 2010, these fully
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
In relation to financial services regulation, an building in the Channel Islands. Ogier House
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
Moving the team
Jersey is not a member of the European Union, • the associated establishment of a business
but applies equivalent principles of freedom of in Jersey generating local tax revenues and
establishment and free movement of employees, providing employment whilst not adversely
subject to some local licensing requirements in impacting upon local resources.
relation to housing and businesses with a local
physical presence. The successful principal would generally be
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%.
“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
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.
Stamp duty is payable on the acquisition and
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
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:-
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
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.
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
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
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
• 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