There is no doubt that the world has experienced significant change over the past 12 months, and the pace of change we have seen has been considerable.
A pandemic has shifted the way we all work, we behave, we interact with each other, we conduct business, we think about our families and we consider our futures.
At the same time, the formal exit of the UK from the European Union is a significant chapter in the make up of the world’s trading blocs, whilst we have also seen a sea change in policy direction in the US.
It amounts to widespread and very tangible change, and disruption in all areas of life, business and investment flows.
As we collectively look forward to the period ahead—a period of uncertainty that will demand significant effort in terms of economic and social recovery, as governments and investors look to shore up national deficits, provide liquidity to markets and stimulate wealth creation—high quality International Finance Centres (IFCs) like Jersey have a real opportunity to play a hugely supportive role.
Over the past year, despite the persistent challenging conditions, thanks to our resilience and stability as a jurisdiction, Jersey has actually seen continued growth of new business. The value of bank deposits held in Jersey has stood up well; the value of funds serviced in Jersey yet again reached record levels of some £365bn, driven largely by private equity; Jersey has been the launchpad for some of the most significant corporate listings; and we have continued to see an uptick in private client philanthropic and charitable activity.
This has been possible because of the experience Jersey has in the international markets, in dealing with highly complex regulatory frameworks and in facilitating cross-border private and institutional capital flows.
We know, for instance, that Jersey helps manage in excess of £1.3 trillion of global assets; that the Foreign Direct Investment channelled through Jersey firms helps build and grow businesses in emerging and developed countries; that pooled capital in Jersey is supporting the long-term retirement pots for more than 60m people around the world; and that more than 50 per cent of new business booked through Jersey originates from time-zones beyond Europe.
Jersey can do all this by providing a no-nonsense and well-regulated platform that means investment is subject to less friction and greater levels of oversight than in most other countries, so that its impact can be greater, quicker and more effective.
That is a hugely compelling proposition and there’s no doubt that over the coming years, that sort of stability, certainty and experience will be a hugely valuable asset.
At the same time, Jersey is committed to innovation to support a highly changeable global environment. This year, our focus as a forward-thinking jurisdiction is on digital connectivity, on driving positive change in global communities, on leveraging our global connectivity and on supporting sustainability across the global financial system.
Already this year, for instance, we have launched a new long-term vision and strategy to position Jersey as a global leader in sustainable finance by 2030, while we are also focused on making fintech a core differentiator in an environment where cutting-edge digital connectivity is critical. We will also be publishing a new report analysing the value Jersey adds to global financial supply chains around the world.
This focus should give Jersey a robust platform not only to emerge strongly itself from this period of economic uncertainty, but to support others through this period too.
This year marks the 60th anniversary of Jersey’s finance industry and, fittingly, our anniversary slogan is “Together we Shine.” As a jurisdiction, we strongly believe that collaboration and working together is the best path to shared success—that ethos is what guides us in everything we do.
The UK, of course, is a major partner for Jersey and, as the UK maps out its position as a “Global Britain” over the coming months, Jersey’s existing connections with the UK and its shared interest in seeing Britain succeed as a global player should be the foundation for a good mutually beneficial and even closer partnership going forward. We see huge complementary opportunities to work together in the months ahead.
Now more than ever there is a real need for robust, stable, neutral jurisdictions that can support secure, impactful investment. With its experience, stable platform and firm focus on the future, Jersey’s values stand aligned with the UK’s, with the jurisdiction both ready and capable of rebuilding economies and communities around the world.
This article is featured in Prospect’s new “The Road to Recovery” report, published in partnership with Lloyds Banking Group, the Government of Jersey and Jersey Finance. Read the full report PDF here.
