Geoff Cook Chief executive Jersey Finance


underwrite their risks can use a cell within a PCC or ICC or even set up their own PCC or ICC.


A further strength that Jersey can capitalise upon is its high standing


as a well-regulated and co-operative jurisdiction. With an increasing emphasis on corporate governance and regulatory oversight of investment entities, those jurisdictions that meet the highest standards will have a competitive edge over other centres.


Top tier Jersey currently has the top ranking among offshore jurisdictions


in the most recent Global Financial Centres Index (GFCI) and it has the endorsement of the International Monetary Fund in respect to its supervisory capabilities, for which it is deemed to be compliant or largely compliant with 44 of the 49 general Financial Action Task Force (FATF) financial crime recommendations, a status that no other jurisdiction, not even G20 nations or other EU member states, can equal. Furthermore, Jersey can point to high levels of compliance with Basel and International Association of Insurance Supervisors core principles.


Alongside this recognition for the quality of its regulatory and legislative environment, Jersey has the depth and breadth of experience among its workforce to provide the administrative services necessary to


support the insurance sector. Jersey has a virtually unrivalled breadth of international banking institutions and specialist law firms when compared with its main offshore competitors.


Redomiciliation


Jersey has the capacity to handle increasing amounts of insurance business. In fact, some clients are keen to consider Jersey as a domicile for their insurance business because close competitors already have an established presence in jurisdictions where the captive market is more mature. Furthermore, there is an opportunity for businesses moving to Jersey with other parts of their operating activity to then consider either the formation of a captive or even the redomiciliation from another jurisdiction.


An example of business growth in Jersey this year has been the redomiciliation of a captive away from another European jurisdiction, with the international group opting to move part of its operation to Jersey. Once the group appreciated the favourable conditions of the business environment in Jersey, it transferred a number of asset-holding vehicles, including its captive, to Jersey. The group is now considering the formation of a second captive in Jersey for its employee benefits.


Relocation


In recent years, a small number of fund management companies have decided that it makes economic sense to relocate their most senior staff and set up their head office in Jersey, rather than remaining in a major onshore centre such as London. While this trend has been evident among a small proportion of hedge fund managers and others in the alternatives sector, Jersey is likewise encouraging reinsurance business and captive managers to also consider the attractions of moving to Jersey.


With a workforce numbering more than 12,500 and the necessary


skills sets to support a growing insurance sector, Jersey has the capacity to build business among insurance providers. A tax-neutral location, with a robust legal framework, operating in a convenient time zone and with extremely close business links with the City of London, Jersey offers an ideal fit for the wholesale insurance market, including the captive industry.


First choice


There is healthy competition among the leading jurisdictions for insurance business and Jersey aims to be included on the list when captive managers and their advisers select their domicile. To help in this regard, Jersey intends to continue to investigate new ways in which it can provide innovative solutions to meet the insurance needs of international businesses, so that in future when such decisions are made, Jersey is more often than not the first choice.


Geoff Cook is the chief executive of Jersey Finance. He can be contacted at: geoff.cook@jerseyfinance.je


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