Jersey Finance slap down criticism from Luxembourg

Tuesday 02 December 2014

Jersey Finance has hit back at claims by a rival funds jurisdiction that the industry here is struggling by pointing out that the number of new funds launched here has risen by more than 100% in the last 12 months.

A report commissioned by the Association of the Luxembourg Fund Industry claimed that the Island’s industry – which along with the trust sector employs around 3,470 people in Jersey – was struggling after the introduction of an EU directive that created new regulations for the funds sector.

The report said that the AIFMD regulations had made onshore fund centres such as Luxembourg more attractive - but Jersey Finance and the Jersey Funds Association say that the reality is that business here is doing well.

Jersey Finance chief executive officer Geoff Cook said: “As far as new fund launches are concerned, the independent Monterey Insight Fund Report for 2014 confirmed that 171 new funds were launched in Jersey in the period from June 2013 to June 2014, compared to 78 in the same period from June 2012 to June 2013 - more than a 100% increase in the period since AIFMD was implemented.

“The total value of funds being administered and managed in Jersey has also grown by around 5% year-on-year to stand above the £205bn mark as at September 2014, according to the official statistics of the Jersey Financial Services Commission.

“The Commission's data also shows the specific value of private equity business has almost doubled over the past five years, whilst Europe's largest private equity fund raised in recent years enjoyed its final $10bn closing from a Jersey management platform. Real estate funds business has risen considerably and consistently too, and by around 50% over the last five years.”