Fintech Why Jersey?
Jersey: Shaping fintech
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Jersey - A History of Growth and Innovation Jersey’s history and culture has resulted in a highly sophisticated community, open to every challenge and opportunity.
Situated only a short distance from the coast of northern France, Jersey is the largest of the Channel Islands and shares a central time zone with the UK, spanning the business day from India and China to the US.
New York
Jersey
Shanghai
Jersey: Strong Foundations The combination of Jersey’s strengths in the financial sector, its pro-business environment and its growing digital sector positions the Island as the ideal jurisdiction for investors, startups and established businesses working in fintech.
World-Class Finance Industry
Although Jersey is a British Crown Dependency, it is not a part of the United Kingdom nor is it represented in the British Houses of Parliament. The Island’s domestic autonomy has been preserved through charter and convention over 800 years of English history.
Digital Expertise and Infrastructure
These unique attributes add to the Island’s reputation as one of the world’s leading international finance centres.
Time Zone and Language
As a result of Jersey’s unbroken constitutional position, the Island proudly possesses its own democratically elected parliament, the Government of Jersey, which has consistently maintained responsibility for domestic affairs including fiscal matters.
Throughout its history, Jersey has embraced economic opportunities and has shown a consistent track record of successful innovation. With its expertise as a finance centre, it was quick to recognise the opportunities presented by fintech and has developed an attractive proposition for innovative startups and established businesses alike. As a result, Jersey has become a hub for successful fintech enterprises, a few of which are highlighted here. The efficient scale and accessibility of Jersey’s independent government means that it is able to listen to industry and move rapidly in the Island’s best interests. Its independence and small size gives it ‘first-mover’ advantage in introducing forwardlooking financial legislation quickly. This is already a major factor in the success of Jersey’s finance industry and is proving beneficial for the digital sector. Legislative innovation and responsiveness are just two of the key attractions for fintech businesses looking to either set up operations in Jersey, or use the jurisdiction as a testbed for new products.
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Jersey for Fintech at a Glance Benefits
Investment in Fibre Connectivity
World-Class Data Centres
Strong Digital Skills Base
Pro-Business Government and Regulator
Extensive Telecommunications Network
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Constantly Evolving and Innovating
Jersey’s Professional Services Network
Jersey is one of the first jurisdictions to adopt a regulatory regime for virtual currency. The regulation provides a threshold test that exempts start-ups involved in virtual currency exchange from paying fees to the Jersey Financial Services Commission (JFSC) for regulation, until they reach a specified turnover threshold. This means that while these businesses have to register and comply with the KYC/AML handbook, there is sufficient room for innovation with minimal regulatory costs.
Jersey boasts numerous professional service providers who can offer support to fintech businesses. The professional services network in Jersey includes:
All Major Accountancy Firms
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Bank Licenses
1st
Regulated Bitcoin Fund Global Advisors Bitcoin Investment Fund became the world’s first regulator approved Bitcoin Investment Fund in July 2014
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Unmanned Smart Issuance Kiosk
Jersey’s International Finance Centre Jersey is one of the world’s leading international finance centres. Reliability, political and economic stability, and a sophisticated and comprehensive infrastructure of laws have kept Jersey at the forefront of global finance for more than 50 years. The wealth of experience and expertise offered by Jersey’s highly-skilled financial service providers, combined with a world-class infrastructure and flexible approach, gives an unparalleled welcome to fintech businesses and investors alike.
Atam holdings allows real-time, unmanned issuance of Credit, Debit, Prepaid and ID card products
7 Years of Foundations
A solution to a gap identified in wealth management services whereby civil law jurisdictions were unfamiliar with the concept of trusts
2014
Securities Interest Law Received Global Innovation Award
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As at December 2015
2,250
+ people employed in digital industries As at January 2016
13,000+ Finance Industry Professionals As at December 2015
1ST
1st
to Introduce Limited Liability Partnerships
30th
Anniversary Trust Law Celebrated The first of its kind and a template for many other jurisdictions
5
First Tier Legal Practices
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Digital Jersey Digital Jersey was established to act as an accelerator, working alongside government and the private sector in coordinating activities that improve Jersey’s ‘digital ecosystem’. The government-funded development agency’s main aim is to facilitate growth of the digital sector, increasing its value to the Island whilst creating more employment opportunities. Digital Jersey voices and supports a community of stakeholders’ visions for the digital sector through skills development, technical innovation and research, financing, incentives, infrastructure and involvement in eGov. It also helps existing local digital companies and start-ups flourish while demonstrating advantages of Jersey to new technology businesses.
The Digital Hub
Jersey Digital Expertise and Infrastructure for Fintech Businesses Jersey has developed a thriving digital sector. This has included the establishment of a representative body, Digital Jersey, as well as investment in strategic infrastructure projects.
Mobile Subscriptions
118 subscribers per 100 inhabitants*
The Digital Hub, located in the heart of St Helier, provides a co-working space and tools for young businesses to grow and develop their ideas. The dynamic, vibrant hub is used by a multitude of businesses, from small fintech startups to more established digital firms. For those new to Jersey, it provides growth space or can be a stop-gap whilst they get settled. It is also proving to be a very effective way to connect with the local digital community.
Developing Digital Talent Broadband Penetration Rate is 87% per 100 households*
The Island has a strong digital skills base, with tech firms in an array of sectors. The Digital Hub has played host to hackathons showcasing the local talent, which have led to the development of new innovative applications.
Jersey is committed to nurturing digital talent so that businesses can continue to recruit skilled and dedicated staff.
The Digital Hub is at the centre of this commitment, hosting regular skills workshops, networking events and also acting as the base for a mentoring programme. This provides entrepreneurs and startups with the ability to seek guidance from industry experts to ensure their ideas are successful.
Investment in Fibre Connectivity The Gigabit Jersey project is bringing fibre connectivity to every Island home and business, transforming Jersey and providing businesses with the ideal test environment for high-bandwidth services. This connectivity is set to place Jersey at the forefront of the global digital ecosystem, generating significant opportunities for fintech business. Today, even before completion, Jersey consistently scores in the global top 10 consumer download speeds on the Ookla index.
Extensive Telecommunications Network World-class, resilient, high-speed and high-bandwidth communication links with both the UK and France allow the Island to operate beyond its borders and fully integrate with the global market economy.
Jersey is one of the best connected mobile data jurisdictions in the world, with the launch of 4G.
Data Hosting Jersey data centres are world-class and used by global brands, multinational banks and online e-tailers. The Island’s five state of the art data centres offer: n
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dherence to ISO27001 and PCI security A standards esilient and virtually unlimited transit R capacity off Island loud services and DDoS protection C solutions Physical data security
safe location due to Jersey’s geopolitical A stability and amenable weather conditions
*Circa Telecommunications Statistics Market Report 2014
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Forward Thinking The scale and accessibility of Jersey’s independent government allows it to respond swiftly to industry requirements. As mentioned, the ability to quickly enact legislation is a major factor in the finance industry’s success and is proving to be a valuable asset for the digital sector.
Combined with the proactive outlook of the JFSC, this has created a perfect testbed environment for fintech businesses, without compromising the jurisdiction’s robust regulatory regime and compliance with international standards.
Jersey A Pro-Business Government and Innovative Regulator Jersey’s success as an international finance centre is the direct result of its consistent ability to nurture innovation. Arguably the most important factor behind Jersey’s growing ability to attract fintech businesses has been the dynamic, forward-thinking approach of the JFSC and the pro-business attitude of government.
The ability to sit down and have meaningful and productive discussions with government and regulatory officials reflects a collaborative culture and collective vision of this small, expert jurisdiction.
To further facilitate growth in the fintech arena, the government has established a fintech development proposition group to engage with industry. This steering group involves industry representatives and key government agencies working together to ensure Jersey remains at the forefront of fintech developments.
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Emerging financial products and ever-increasing regulatory requirements have brought a new focus on opportunities and demands for fintech solutions. Jersey offers an ideal environment for fintech innovation, with its combination of a world-leading financial sector and progressive regulatory environment. This commitment to being at the forefront of technology and finance is evidenced by the Island being home to the world’s first regulated Bitcoin fund.
Robust Regulatory Regime The JFSC seeks to deliver a balanced, progressive and risk-based regulatory regime for Jersey.
Dedication to a regime which enables firms to innovate, whilst ensuring that they have effective risk management procedures in place, has resulted in a business-friendly environment recognised internationally as a global leader in defining standards.
“Jersey rightly prides itself on being among the top tier of jurisdictions when it comes to compliance and has proven many times that innovation in new financial products and the highest regulatory standards are not mutually exclusive.” Daniel Masters, Director of GAJL
Case Study The World’s First Regulated Bitcoin Fund Global Advisors Bitcoin Investment Fund was launched by Global Advisors Jersey Limited (GAJL), and became the world’s first regulator approved Bitcoin Investment Fund in July 2014, demonstrating the government and regulator’s appreciation of new technologies and products.
The fund’s launch was the culmination of active dialogue between GAJL and the Jersey Financial Services Commission to agree practices and processes which met the highest regulatory standards.
“Jersey’s success as an international financial centre results from an ability to respond quickly to opportunities. A key challenge for the Commission is to create a regulatory regime that both enables firms to innovate and to exploit market opportunities, and ensures that they behave responsibly and have effective risk management procedures in place to protect consumers.” JFSC 2015 Business Plan
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Corporate Income Tax – Stable and Predictable n The
general rate of tax for corporate entities in Jersey is 0%.
n Certain
regulated financial service activities are taxed at 10%; this includes banks, trust companies, investment managers and certain fund functionaries undertaking custodian and administrator functions (fund management business is taxed at 0%).
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Relocating to Jersey How Tax Works Only income is subject to tax; there are no capital gains, inheritance or wealth taxes.
20%
PAY 20% ON FIRST
£625K THEN 1% ON ABOVE
The general rate of personal income tax in Jersey is 20%.
Jersey authorities are actively seeking to attract new business to the jurisdiction and are on hand to offer help and support to those wishing to relocate to Jersey.
For more information on relocating to Jersey, please visit www.locatejersey.com
Atam has been given great encouragement and support by the Government of Jersey and the various agencies involved, including Jersey Finance, Digital Jersey and Locate Jersey.” Graham Foster, Director of Atam Technologies Limited
Exit Strategy All business leaders need an exit strategy and, with no capital gains tax, the Island is an attractive choice where a disposal may occur in the future. For businesses with ambitions of an IPO, the jurisdiction also provides excellent expertise. Jersey has the greatest number of FTSE 100 companies registered outside of the UK. Worldwide, it has 101* companies listed on global stock exchanges from London to New York with total market capitalisation of £199 billion*.
“The motivation for our move to Jersey was twofold: firstly, we wanted to be able to invest more of the company profits in order to grow the business and secondly, we were quite simply seeking a better quality of life for each of the directors and their families. We were finding London an expensive place in which to operate our business and none of us were enjoying our lengthy daily commute, which was keeping us away from our growing families.” Daniel Masters, Director of GAJL
igh Net Worth Individuals pay 20% on their first £625k of H annual worldwide income and 1% on all income over and above that amount. Depending upon how long they are due to spend in the jurisdiction, executives may be subject to tax only on their Jersey-source income rather than worldwide income.
“As the Atam brand grows, we need to be positioned in a jurisdiction with the proven history of stability and compliance that Jersey offers. Furthermore the geographic location allows us easy access to European markets whist benefiting from a partmutual working day with our key markets of the GCC (Middle East) and the Americas.
Case Study Atam - The World’s First Unmanned Smart Issuance Kiosk Atam Holdings, a fintech company based in Jersey, with its own organically developed suite of hardware and software solutions, allows real-time, unmanned issuance of Credit, Debit, Prepaid and I.D. card products from bespoke standalone kiosks, offering full EMV certification with highest levels of KYC and AML compliance.
Atam have launched the world’s first fully personalised, EMV certified prepaid card from a kiosk in the United Arab Emirates for National Pay regulatory standards. * As at June 2016
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Employment, Business Licences and Visas
Business Investment:
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All new businesses established in Jersey are required to have a licence before commencement.
he target processing time for T such licences is only 15 days with efforts underway to further streamline this process.
There are no entry restrictions or work permits required if you are a British Citizen or a national of a Member State of the EU or EEA.
verseas nationals from O outside the EEA should seek advice as to specific visa or work permit requirements.
The Jersey Innovation Fund Launched in November 2013, the Jersey Innovation Fund is a key element of the government’s strategy to deliver growth and diversification in Jersey’s economy, by supporting investment into innovative projects and business ideas, while simultaneously improving Jersey’s international competitiveness. The government’s firm commitment to this initiative was confirmed by an initial capital injection of £5 million.
The goal for the Jersey Innovation Fund is to enable new investment, improve access to working capital and support entrepreneurs, startups and established organisations with investment into innovation.
Venture Capital Jersey’s history of innovation and of attracting successful entrepreneurs and high net worth individuals (HNWIs) to the Island has resulted in the development of a substantial but private and informal source of funding for pioneering businesses.
HNWIs and local businesses have provided significant investment into businesses looking for funding and, with many having a background in the financial services and digital sectors, opportunities for investment into fintech businesses are proving particularly popular.
Case Study The Jersey Innovation Fund (JIF) Total Solutions Group (TSGi) are a prime example of successful innovation in Jersey, with products across the Digital Health, government and retail and fintech markets. TSGi’s recovery auditing fintech solution uncovers hidden profit in historical transactional data and helps correct processing errors. Among their client base are global airlines, manufacturers and retailers, with products used by world class organisations such as the NHS.
Having identified export opportunities and proved market through pilot/beta deployments, TSGi realised that they could build on their initial success through investment, with the natural next step being an approach to the JIF for funding.
Digital Jersey and Jersey Business were able to provide strategic confidential advice throughout the process and their application ultimately received Ministerial signoff.
JIF funding support enabled TSGi to expand into overseas markets and evolve their technology. Their success has contributed to putting Jersey firmly on the map as a rising hub for fintech innovation.
Innovation Commitment Diversification 12 Jersey: Shaping fintech
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Jersey Finance
Digital Jersey
Jersey Finance promotes and leads the development of Jersey as an international finance centre. It also coordinates the consultation process for proposed legislation and regulation affecting the finance industry, to produce and maintain a product offering that reinforces Jersey’s position as a centre of excellence.
Digital Jersey was established to act as an accelerator, working alongside government and the private sector in coordinating activities that improve Jersey’s ‘digital ecosystem’. The governmentfunded development agency’s main aim is to facilitate growth of the digital sector, increasing its value to the island whilst creating more employment opportunities. Digital Jersey voices and supports a community of stakeholders’ visions for the digital sector through skills development, technical innovation and research, financing, incentives, infrastructure and involvement in eGov. It also helps existing local digital companies and start-ups flourish while demonstrating advantages of the island to new technology businesses.
The organisation’s primary objective is to communicate the many factors that make Jersey a leading international finance centre, including the experience and expertise of its practitioners; its political, economic and fiscal stability; and its high level of regulation and security. Jersey Finance has offices in Jersey, Dubai, Mumbai, New Delhi and Hong Kong. It also has representation in London and a CBBC Launchpad in Shanghai.
With strong partnerships between international industry associations, Jersey Finance regularly organises visits and events in key locations around the world. For more information, visit www.jerseyfinance.je
Jersey Financial Services Commission The Jersey Financial Services Commission (JFSC) is the financial services regulator for the Island of Jersey. It is responsible for the supervision, authorisation, oversight and development of financial services in or from within Jersey. The JFSC aims to: n
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Ensure that all authorised financial service businesses and individuals meet the appropriate criteria and that the JFSC matches international standards of banking, securities, trust company business, and insurance regulation, as well as antimoney laundering and terrorist finances defences
Locate Jersey Locate Jersey, part of the Department of Economic Development, Tourism, Sport and Culture, is the government department responsible for promoting, attracting and retaining inward investment and developing high value residency for Jersey. They welcome propositions from businesses and individuals looking to move themselves and their future global operations offshore, encouraging high-value low footprint businesses and high net worth individuals to relocate to the island.
Locate Jersey provides comprehensive, confidential and free advice to facilitate, support and guide companies and individuals through the process of relocating to Jersey from pre-location information and advice, to aftercare once you are established in Jersey. For more information, visit www.locatejersey.com
Jersey Business Jersey Business helps individuals and companies to achieve their business goals by providing support and guidance on how to start up as well as improve and grow a business.
Jersey Business’ activity is a catalyst, triggering growth and change across all business sectors by:
Be effective in combatting the financing of terrorism and financial crime as part of the wider international effort in this respect
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Be an agile and thoughtful regulator in reducing risk to depositors and investors whilst being proportionate so that the costs of regulation do not outweigh their benefits
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Work closely with fellow regulators and law makers to ensure access to efficient and effective markets for financial services
A member of the International Organisation of Securities Commissions (IOSCO), the JFSC maintains its independence as a regulator but works closely with those in the industry, with Jersey Finance and the government.
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Directly supporting individual businesses to achieve their full potential throughout their lifecycle
Helping drive productivity and sustainability in key sectors to deliver economic growth Stimulating and promoting the adoption of market leading practices across the economy
The team of skilled business professionals, who have many years combined experience of running private sector businesses, provide a free and confidential advisory service. For more information, visit www.jerseybusiness.je.
For more information, visit www.jerseyfsc.org 14 Jersey: Shaping fintech
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Jersey Finance Limited 4th Floor Sir Walter Raleigh House 48-50 Esplanade Jersey JE2 3QB Channel Islands T: +44 (0)1534 836000 E: jersey@jerseyfinance.je
Digital Jersey Limited Block 3, The Forum, Grenville Street, St Helier Jersey JE2 4UF Channel Islands T: +44 (0)1534 789333 E: info@digital.je