Links with India Why Jersey is at the Jersey structures for The appeal of Jersey for Using Jersey companies forefront of banking, safeguarding real succession planning, to secure listings on wealth management estate investment in wealth preservation stock exchanges around and corporate services the UK and beyond and philanthropy the world 02 Jersey’s attraction Welcome to Links with India Jersey has been a leading international finance centre for more than 50 years. Links away from 04 the world of finance At the forefront of global banking, wealth management and corporate services, it has developed Gateway to London an offering that balances product innovation alongside high standards of regulation, world class 06 and beyond legislation and in depth expertise from a range of experienced practitioners. The following articles explore the ingredients that have given Jersey this competitive edge and examine the benefits to intermediaries and their clients of working in partnership with practitioners in Jersey. IPOs for 14 Indian companies Geoff Cook Chief Executive, Jersey Finance Contents Private wealth 08 and succession planning A view of Jersey Philanthropy and 16 from India philanthropic structures Links with India is published by Jersey Finance. 10 The publication highlights how businesses in Jersey and India can work together in support of the strategic objectives of clients both in, and with links to, the region. It complements Jersey for other publications in our ‘Links with’ series on China, the GCC and Russia. Indian family offices on P 12 Jersey soil cessi lanni If you are interested in contributing to our ‘Links with’ series, please contact: Suc ng 18 Indian roots Lucy Braithwaite T: +44 (0)1534 836009 P e ro About E: [email protected] ic p v er d ty A Jersey Finance t M 20 n a e n a tm g s e e m v e n I n www.linkedin.com/company/jersey-finance @jerseyfinance www.youtube.com/jerseyfinance t s e c i F v i r n e a S n c e i g a r l e R i c e n p o o r C t i e n k g o p s e B t C n o e r p m o e r g a a t e n a S e M r t v c i e c j e o s r P T s r e u c s i t v e r e e S With an experienced workforce of bankers, investment managers and private wealth professionals, Jersey has become a specialist wealth management centre that attracts Jersey’s deposits and investments from around the world Attraction NEW DELHI Jersey has provided financial services to Indian businesses, financial institutions, families and high net worth individuals, including non resident Indians, for many years. The jurisdiction is an attractive location to the Indian investment MUMBAI community thanks to the maturity and robustness of its regulatory and legal systems, its tax neutral platform, close proximity to the UK and European markets, and a concentration of financial planning and structuring expertise. Political and economic stability Jersey has also positioned itself as a leading European Tax Information Exchange Agreements (TIEAs). Jersey has combined market capitalisation of more than US$339 jurisdiction for funds with the ability to operate compliantly to date completed over 40 tax agreements with countries billion.2 Jersey has a unique constitutional relationship with the UK. within the EU and to offer an alternative route for those worldwide, including one with India in 2011 and it has It is independent with its own government responsible for not wanting to contend with the heavy burden of EU aligned with other major jurisdictions in committing to The strength of its relationship with the City of London legislation, economic policy and fiscal matters. One of the regulation. Meanwhile, another group of practitioners serve the new OECD model for automatic information exchange. was highlighted in 2013 when an independent study fundamental strengths of Jersey as an International Finance the needs of the corporate market and advise on Jersey’s Jersey was also one of the first jurisdictions to regulate its undertaken on behalf of Jersey Finance by research firm Centre is its enduring political and economic stability. It range of investment vehicles that are designed to support trust industry, a move which has provided investors with Capital Economics showed that Jersey was a conduit for was awarded an AA+ credit rating from Standard & Poors inward investment projects in India and other major reassurance that structures are being administered by over US$753 billion of foreign investment into the UK, 5% and its financial stability was further recognised by the global economies and assist businesses looking to expand highly competent service providers. of the total stock of foreign owned assets in the country.3 investment markets in 2014 when a Jersey Government internationally and access capital on foreign exchanges. The relationship continues to prove valuable to financial debt bond issue was successfully launched in London and Nearly 25% of the workforce in Jersey is employed in the Jersey has a constantly evolving legislative platform institutions and other investors in India and other fast was more than two-and-a-half times oversubscribed. Its financial services sector1 and it is the largest number of designed to meet the needs of corporate and institutional growing regions of the world looking to internationalise pricing represented one of the lowest new issue spreads any offshore centre. Jersey has the largest branch of the investors and private clients. The world’s leading and seek capital abroad. ever achieved for a long dated, non-UK guaranteed sterling Society of Trust & Estate Practitioners (STEP) in the world jurisdiction for trusts, Jersey added foundations to the transaction and it was testament to the underlying strength and an extensive intermediary network virtually unrivalled statute five years ago to widen the range of options of public finances and the strong fiscal and net asset amongst competitor jurisdictions. for investors considering investment strategies and to A growing presence in India position of Jersey as a jurisdiction. appeal especially to those in common law jurisdictions who are unfamiliar with the trust concept. The trust law, Regular visits to India by representatives from Jersey’s Regulation and legislation meanwhile, introduced 30 years ago and still the blueprint Government, the financial regulator and the finance Wide ranging expertise for laws in many other jurisdictions, continues to evolve, industry have been made in recent times to improve ties, Jersey’s world class reputation for the quality of its whilst innovations to the company law are currently being showcase Jersey’s services and to highlight the quality of its Equipped with an experienced workforce of bankers, regulation and the endorsements it has received from key implemented to further expand Jersey’s appeal to those regulatory regime. Jersey has increased its representation investment managers and private wealth professionals, independent bodies such as the IMF, OECD and World Bank, who structure investments. in the country and dedicated staff have been based in Jersey has become a specialist wealth management centre make its offering even more compelling to international both Mumbai and New Delhi for some time. It is Jersey’s that attracts deposits and investments from around the investors. intention to continue to develop closer ties and, in this world. With a banking sector comprising major global way, enhance its commercial relationship with Indian Gateway to western markets ■ organisations, the infrastructure is bolstered further by Jersey’s authorities have vigorously fought tax evasion for intermediaries, advisers and private clients. access to all of the major professional services firms, many years and introduced legislation in the late 1990s Jersey’s relationship with the City of London has been including at least five first tier legal practices, and a making it a criminal offence. It has consistently followed a powerful feature of its offering and helps to position 2 ‘Jersey Holding Companies as Listing Vehicles - Factsheet’ from Jersey vast range of independent trust companies and wealth international best practice with enhanced regulations Jersey as the gateway for investment in both London and Finance (June 2014) converted from GBP to USD in September 2014 managers. designed to fight financial crime, whilst regulations are in European markets. For example, more than 106 Jersey 3 ‘Jersey’s Value to Britain’ Report from Capital Economics (2013) converted place so that entities are fully accessible under the terms of companies are listed on exchanges worldwide, with a from GBP to USD in September 2014 1 States of Jersey Labour Market Report June 2013 2 JERSEY FINANCE: LINKS WITH INDIA JERSEY FINANCE: LINKS WITH INDIA 3 Jersey and LINKS The relationship between Jersey AWAY and India is long established, thanks from the to excellent political, commercial and WORLD community links of Jersey cows are a common sight in India FINANCE The famous ‘Jersey Cow’ Jersey cattle can be seen across India and are an integral part of the dairy industry, as they are in many other countries. Renowned for the quality of the rich, creamy milk they produce, Jersey cows are relatively small, easy to manage and can withstand hot climates. India has the largest population of dairy cattle in the world and is the world’s largest milk producer. Pure breed Jersey cows have been imported, but most dairy cattle are cross breeds. Indian businesses Wildlife conservation in Jersey Conservationist and author, the late Gerald Durrell, Jersey is an internationally recognised, highly reputable who founded the Durrell Wildlife Conservation Trust jurisdiction and a well-respected business centre. It in Jersey, was born in Jamshedpur, India in 1925.