Fintech Why ?

Jersey: Shaping fintech 1 Jersey - A for Fintech Growth and Innovation at a Glance Benefits

Jersey’s history and culture has resulted in a highly sophisticated community, open to every challenge and opportunity. World-Class Finance Situated only a short distance from the coast of Industry northern , 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. Although Jersey is a British Crown Dependency, Digital Expertise and it is not a part of the United Kingdom nor is it Infrastructure 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. Investment in Fibre As a result of Jersey’s unbroken constitutional position, Connectivity New York Jersey Shanghai the Island proudly possesses its own democratically elected parliament, the , which has consistently maintained responsibility for domestic affairs including fiscal matters. These unique attributes add to the Island’s reputation Time Zone as one of the world’s leading international finance and Language Jersey: centres. Throughout its history, Jersey has embraced economic opportunities and has shown a consistent track record of successful innovation. With its World-Class Strong expertise as a finance centre, it was quick to Data Centres recognise the opportunities presented by fintech and has developed an attractive proposition for innovative startups and established businesses alike. As a Foundations result, Jersey has become a hub for successful fintech enterprises, a few of which are highlighted here. Strong Digital The efficient scale and accessibility of Jersey’s Skills Base The combination of Jersey’s strengths in the independent government means that it is able to financial sector, its pro-business environment listen to industry and move rapidly in the Island’s best interests. Its independence and small size gives and its growing digital sector positions the Island it ‘first-mover’ advantage in introducing forward- as the ideal jurisdiction for investors, startups looking financial legislation quickly. This is already Pro-Business Government and established businesses working in fintech. a major factor in the success of Jersey’s finance and Regulator industry and is proving beneficial for the digital sector. Legislative innovation and responsiveness are just two of the key attractions for fintech businesses Extensive looking to either set up operations in Jersey, or use Telecommunications the jurisdiction as a testbed for new products. Network

2 Jersey: Shaping fintech Jersey: Shaping fintech 3 Constantly Evolving Jersey’s Professional and Innovating Services Network

Jersey is one of the first jurisdictions to adopt Jersey boasts numerous professional service a regulatory regime for virtual currency. providers who can offer support to fintech The regulation provides a threshold test businesses. The professional services network that exempts start-ups involved in virtual in Jersey includes: currency exchange from paying fees to the Jersey Financial Services Commission (JFSC) All Major Accountancy for regulation, until they reach a specified Firms 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 32 regulatory costs. Bank Licenses As at December 2015 st

Regulated1 Bitcoin Fund Global Advisors Bitcoin people employed in Investment Fund became + the world’s first regulator digital industries approved Bitcoin Investment 2,250 Fund in July 2014 As at January 2016 + st 13,000 Unmanned1 Smart Finance Industry Issuance Kiosk Professionals As at December 2015 Atam holdings allows real-time, unmanned issuance of Credit, Debit, Prepaid and ID card products Jersey’s 1ST st

to1 Introduce Limited International Finance Centre Liability Partnerships of7 Foundations Years

Jersey is one of the world’s leading international finance centres. A solution to a gap identified Reliability, political and economic stability, and a sophisticated in wealth management services whereby civil law jurisdictions th and comprehensive infrastructure of laws have kept Jersey at the were unfamiliar with the 30 forefront of global finance for more than 50 years. concept of trusts Anniversary Trust Law The wealth of experience and expertise offered by Jersey’s Celebrated highly-skilled financial service providers, combined with a The first of its kind and a template world-class infrastructure and flexible approach, gives an for many other jurisdictions unparalleled welcome to fintech businesses and investors alike. 2014 Securities Interest Law Received Global First Tier Legal Innovation Award 5 Practices

4 Jersey: Shaping fintech Jersey: Shaping fintech 5 Digital Jersey Investment

Digital Jersey was established to act as an in Fibre Connectivity accelerator, working alongside government and the private sector in coordinating The Gigabit Jersey project is bringing fibre activities that improve Jersey’s ‘digital connectivity to every Island home and ecosystem’. The government-funded business, transforming Jersey and providing development agency’s main aim is to facilitate businesses with the ideal test environment for growth of the digital sector, increasing its high-bandwidth services. value to the Island whilst creating more This connectivity is set to place Jersey at the employment opportunities. Digital Jersey forefront of the global digital ecosystem, voices and supports a community of generating significant opportunities for stakeholders’ visions for the digital sector fintech business. Today, even before through skills development, technical completion, Jersey consistently scores in the innovation and research, financing, incentives, global top 10 consumer download speeds on infrastructure and involvement in eGov. It the Ookla index. also helps existing local digital companies and start-ups flourish while demonstrating advantages of Jersey to new technology Extensive businesses. Telecommunications Network The Digital Hub World-class, resilient, high-speed and The Digital Hub, located in the heart of St high-bandwidth communication links with Helier, provides a co-working space and tools both the UK and France allow the Island to for young businesses to grow and develop operate beyond its borders and fully integrate their ideas. The dynamic, vibrant hub is used with the global market economy. Jersey by a multitude of businesses, from small fintech startups to more established digital Jersey is one of the best connected mobile data jurisdictions in the world, with the launch Digital Expertise and Mobile firms. For those new to Jersey, it provides growth space or can be a stop-gap whilst of 4G. Subscriptions Infrastructure for Fintech they get settled. It is also proving to be a very 118 subscribers per 100 effective way to connect with the local digital inhabitants* Businesses community. Data Hosting Jersey data centres are world-class and used Developing Digital Talent by global brands, multinational banks and Jersey has developed a thriving digital sector. online e-tailers. This has included the establishment of a representative body, Digital Jersey, as well as investment in strategic The Island has a strong digital skills base, The Island’s five state of the art data centres infrastructure projects. with tech firms in an array of sectors. The offer: Broadband Digital Hub has played host to hackathons n  Penetration Rate showcasing the local talent, which have Adherence to ISO27001 and PCI security standards is 87% per 100 led to the development of new innovative n households* applications.  Resilient and virtually unlimited transit Jersey is committed to nurturing digital talent capacity off Island n so that businesses can continue to recruit  Cloud services and DDoS protection skilled and dedicated staff. solutions n The Digital Hub is at the centre of this  Physical data security commitment, hosting regular skills n  workshops, networking events and also acting A safe location due to Jersey’s geopolitical as the base for a mentoring programme. This stability and amenable weather conditions provides entrepreneurs and startups with the ability to seek guidance from industry experts to ensure their ideas are successful.

*Circa Telecommunications Statistics Market Report 2014

6 Jersey: Shaping fintech Jersey: Shaping fintech 7 Forward Thinking “Jersey rightly prides itself on being among the top tier of jurisdictions The scale and accessibility of Jersey’s when it comes to compliance and has independent government allows it to proven many times that innovation in respond swiftly to industry requirements. new financial products and the highest As mentioned, the ability to quickly enact regulatory standards are not mutually legislation is a major factor in the finance exclusive.” industry’s success and is proving to be a Daniel Masters, Director of GAJL 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. Case Study Emerging financial products and ever-increasing regulatory requirements The World’s First Regulated have brought a new focus on opportunities Bitcoin Fund and demands for fintech solutions. Jersey offers an ideal environment for fintech Global Advisors Bitcoin Investment innovation, with its combination of a Fund was launched by Global Advisors world-leading financial sector and Jersey Limited (GAJL), and became progressive regulatory environment. This the world’s first regulator approved commitment to being at the forefront of Bitcoin Investment Fund in July 2014, technology and finance is evidenced by demonstrating the government and the Island being home to the world’s first regulator’s appreciation of new Jersey regulated Bitcoin fund. technologies and products. The fund’s launch was the culmination of active dialogue between GAJL A Pro-Business Government and the Jersey Financial Services Robust Regulatory Regime Commission to agree practices and processes which met the highest and Innovative Regulator regulatory standards. The JFSC seeks to deliver a balanced, Jersey’s success as an international finance centre is the direct progressive and risk-based regulatory result of its consistent ability to nurture innovation. regime for Jersey. Arguably the most important factor behind Jersey’s growing Dedication to a regime which enables firms ability to attract fintech businesses has been the dynamic, to innovate, whilst ensuring that they have “Jersey’s success as an international forward-thinking approach of the JFSC and the pro-business effective risk management procedures in financial centre results from an ability attitude of government. place, has resulted in a business-friendly to respond quickly to opportunities. A environment recognised internationally as a key challenge for the Commission is The ability to sit down and have meaningful and productive global leader in defining standards. to create a regulatory regime that both discussions with government and regulatory officials reflects a enables firms to innovate and to exploit collaborative culture and collective vision of this small, expert market opportunities, and ensures jurisdiction. that they behave responsibly and have To further facilitate growth in the fintech arena, the effective risk management procedures government has established a fintech development proposition in place to protect consumers.” group to engage with industry. This steering group involves JFSC 2015 Business Plan industry representatives and key government agencies working together to ensure Jersey remains at the forefront of fintech developments.

8 Jersey: Shaping fintech Jersey: Shaping fintech 9 Corporate Income Tax – “As the Atam brand grows, we need Stable and Predictable to be positioned in a jurisdiction with the proven history of stability and compliance that Jersey offers. n  The general rate of tax for corporate entities Furthermore the geographic location in Jersey is 0%. allows us easy access to European n markets whist benefiting from a part-  Certain regulated financial service activities mutual working day with our key are taxed at 10%; this includes banks, markets of the GCC (Middle East) and the trust companies, investment managers Americas. and certain fund functionaries undertaking custodian and administrator functions (fund Atam has been given great management business is taxed at 0%). encouragement and support by the n Government of Jersey and the various  The Jersey authorities are actively seeking agencies involved, including Jersey to attract new business to the jurisdiction Finance, Digital Jersey and Locate Jersey.” and are on hand to offer help and support to those wishing to relocate to Jersey. Graham Foster, Director of Atam Technologies Limited

Relocating Exit Strategy to Jersey All business leaders need an exit strategy and, with no capital gains tax, the Island is an How Tax Works attractive choice where a disposal may occur in the future. “The motivation for our move to Jersey For businesses with ambitions of an IPO, the was twofold: firstly, we wanted to be jurisdiction also provides excellent expertise. able to invest more of the company Only income is subject to tax; there are no capital gains, inheritance Jersey has the greatest number of FTSE 100 profits in order to grow the business or wealth taxes. companies registered outside of the UK. and secondly, we were quite simply Worldwide, it has 101* companies listed on seeking a better quality of life for each global stock exchanges from London to New of the directors and their families. We York with total market capitalisation of were finding London an expensive place £199 billion*. in which to operate our business and The general rate of personal income tax in Jersey is 20%. none of us were enjoying our lengthy 20% daily commute, which was keeping us away from our growing families.” Daniel Masters, Director of GAJL

PAY 20% ON FIRST High Net Worth Individuals pay 20% on their first £625k of £625K THEN 1% annual worldwide income and 1% on all income over and ON ABOVE above that amount. Case Study 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. 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 For more information on relocating to Jersey, please visit www.locatejersey.com 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

10 Jersey: Shaping fintech Jersey: Shaping fintech 11 Business Investment: Case Study

Employment, All new businesses established The Jersey Innovation Fund 1 in Jersey are required to have a The Jersey Innovation Fund Business licence before commencement. (JIF) Launched in November 2013, the Jersey Innovation Fund is a key element of the Total Solutions Group (TSGi) are Licences government’s strategy to deliver growth a prime example of successful and diversification in Jersey’s economy, by innovation in Jersey, with products supporting investment into innovative projects across the Digital Health, government and Visas and business ideas, while simultaneously and retail and fintech markets. The target processing time for improving Jersey’s international competitiveness. TSGi’s recovery auditing fintech such licences is only 15 days The government’s firm commitment to this solution uncovers hidden profit in with efforts underway to further 2 initiative was confirmed by an initial capital historical transactional data and streamline this process. injection of £5 million. helps correct processing errors. Among their client base are global The goal for the Jersey Innovation Fund is to airlines, manufacturers and retailers, enable new investment, improve access to with products used by world class working capital and support entrepreneurs, organisations such as the NHS. startups and established organisations with investment into innovation. Having identified export opportunities There are no entry restrictions and proved market through pilot/beta or work permits required if deployments, TSGi realised that they 3 you are a British Citizen or a could build on their initial success national of a Member State of through investment, with the natural the EU or EEA. Venture Capital next step being an approach to the JIF for funding. Digital Jersey and Jersey Business were Jersey’s history of innovation and of attracting able to provide strategic confidential successful entrepreneurs and high net worth advice throughout the process and individuals (HNWIs) to the Island has resulted their application ultimately received in the development of a substantial but private Overseas nationals from Ministerial signoff. and informal source of funding for pioneering outside the EEA should seek businesses. JIF funding support enabled TSGi to 4 advice as to specific visa or expand into overseas markets and work permit requirements. HNWIs and local businesses have provided evolve their technology. Their success significant investment into businesses looking has contributed to putting Jersey firmly for funding and, with many having a background on the map as a rising hub for fintech in the financial services and digital sectors, innovation. opportunities for investment into fintech businesses are proving particularly popular.

Innovation Commitment Diversification

12 Jersey: Shaping fintech Jersey: Shaping fintech 13 Jersey Finance Digital Jersey

Jersey Finance promotes and leads the development of Jersey Digital Jersey was established to act as an accelerator, working as an international finance centre. It also coordinates the alongside government and the private sector in coordinating consultation process for proposed legislation and regulation activities that improve Jersey’s ‘digital ecosystem’. The government- affecting the finance industry, to produce and maintain a funded development agency’s main aim is to facilitate growth of product offering that reinforces Jersey’s position as a centre of the digital sector, increasing its value to the island whilst creating excellence. more employment opportunities. Digital Jersey voices and supports a community of stakeholders’ visions for the digital sector through The organisation’s primary objective is to communicate skills development, technical innovation and research, financing, the many factors that make Jersey a leading international incentives, infrastructure and involvement in eGov. It also helps existing finance centre, including the experience and expertise of its local digital companies and start-ups flourish while demonstrating practitioners; its political, economic and fiscal stability; and its advantages of the island to new technology businesses. 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 Locate Jersey CBBC Launchpad in Shanghai. With strong partnerships between international industry Locate Jersey, part of the Department of Economic Development, associations, Jersey Finance regularly organises visits and events Tourism, Sport and Culture, is the government department in key locations around the world. responsible for promoting, attracting and retaining inward investment and developing high value residency for Jersey. For more information, visit www.jerseyfinance.je They welcome propositions from businesses and individuals looking to move themselves and their future global operations offshore, encouraging high-value low footprint businesses and Jersey Financial 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 Services Commission 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 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. Jersey Business The JFSC aims to: n Jersey Business helps individuals and companies to achieve their   Ensure that all authorised financial service businesses and business goals by providing support and guidance on how to start individuals meet the appropriate criteria and that the JFSC up as well as improve and grow a business. matches international standards of banking, securities, trust company business, and insurance regulation, as well as anti- Jersey Business’ activity is a catalyst, triggering growth and change money laundering and terrorist finances defences across all business sectors by: n n   Be effective in combatting the financing of terrorism and financial   Directly supporting individual businesses to achieve their full crime as part of the wider international effort in this respect potential throughout their lifecycle n n   Work closely with fellow regulators and law makers to ensure   Helping drive productivity and sustainability in key sectors to access to efficient and effective markets for financial services deliver economic growth n n   Be an agile and thoughtful regulator in reducing risk to   Stimulating and promoting the adoption of market leading depositors and investors whilst being proportionate so that the practices across the economy costs of regulation do not outweigh their benefits The team of skilled business professionals, who have many years A member of the International Organisation of Securities combined experience of running private sector businesses, provide Commissions (IOSCO), the JFSC maintains its independence as a a free and confidential advisory service. regulator but works closely with those in the industry, with Jersey For more information, visit www.jerseybusiness.je. Finance and the government. For more information, visit www.jerseyfsc.org

14 Jersey: Shaping fintech Jersey: Shaping fintech 15 Jersey Finance Limited

4th Floor Sir Walter Raleigh House 48-50 Esplanade Jersey JE2 3QB Channel Islands

T: +44 (0)1534 836000 E: [email protected]

Digital Jersey Limited

Block 3, The Forum, Grenville Street, St Helier Jersey JE2 4UF Channel Islands

T: +44 (0)1534 789333 E: [email protected]