Members of the JFA’s Legal and Technical and Risk and Compliance Sub-Committees provided an update to professionals from across Jersey’s funds sector recently, at a briefing that explored the current landscape and some of the measures the industry is taking to maintain Jersey’s leading position as a centre for alternative investment funds.

Setting the scene, Joel Hernandez, Vice Chair of the JFA and Chair of the JFA Legal and Technical Sub-Committee, highlighted the pressure the funds industry has seen over the past year.

He also pointed out that competition between international finance centres remains intense and that Jersey's continued attractiveness as a fund domicile relies on it continuing to have jurisdictional stability, effective regulatory options and tax simplicity. Considerations such as service quality, talent retention, being digitally enabled and cost-effectiveness are key to differentiating Jersey from other IFCs in the coming years.

Joel also highlighted the progress the JFA has made in supporting changes across Jersey’s funds sector. Notably this has included the JFA's work with the Jersey Financial Services Commission (JFSC) and Jersey Finance on the recent updates to the Jersey Private Fund (JPF) Guide, as well as the recent JFSC guidance issued on the Tokenisation of Real-World-Assets.

Commenting on the event, Joel Hernandez, Vice Chair of JFA and Chair of the JFA Legal and Technical Sub-Committee, said:

“There’s no doubt the past year has been challenging for the  funds industry at large. Part of the JFA's role has been to help industry respond to these challenges by progressing developments through collective innovation with the JFSC and Jersey Finance."

“Despite the challenges, there is good reason for Jersey's funds industry to remain positive given its strong position. It's also pleasing to also see industry, government and the regulator collectively moving towards a "growth mindset" and a renewed focus on innovation. This will be critical to the future success of the Jersey funds industry."

Jon Stevens, Chair of the JFA Regulatory and Compliance Sub-Committee, added:

“Against that backdrop, asserting Jersey’s relevance as a robust, expert and progressive centre is critical. Offering regulatory choice, delivering on speed to market and tax simplicity with a familiar rule of law and good access to EU investor capital will all be important as we move into 2025 – all whilst maintaining a close eye on cost effectiveness.”