Over the last 18 months a team comprising of senior officials from Jersey’s Chief Minister’s department, the Jersey, London and Brussels External Relation teams, Law Officers, Financial Services Commission, Jersey Finance and advisors have worked hard to prepare for whatever outcome the people of United Kingdom decided on the EU referendum. The island was prepared for either result.
At dawn, the Jersey team implemented the carefully researched plan which had been prepared in the event of an exit vote.
Whilst other ministers have their important roles to discharge, my political responsibility is to do whatever is necessary to protect and promote the interests of the sectors I am politically responsible for.
I write this blog in this capacity and thought it would be helpful to set out my thoughts on what today vote means.
Our diversified Financial Services Sector
As a result of the long-term planning ahead of the EU referendum, today we are extremely well prepared. Our stable public finances, increasingly international ties and underpinned a growing economy economic growth can UK’s withdrawal.
It is important to remember that Jersey is an International Finance Centre, three quarters of whose wealth comes from outside the UK. Work in recent years has demonstrated the diversified client base in financial services markets, particularly in new markets such as the Middle East, Africa and Asia. Our diverse base of underlying business is therefore not directly affected by Brexit.
We are very well and uniquely placed to navigate our way through what is going to be a period of adjustment for the UK where there will be the need to build and develop new relationships.
Jersey is and will remain a third country to Europe
Institutional investors place confidence in Jersey structures to distribute capital around the world.
GJersey has always been a third country to the EU for the purposes of JErsey services and this will remain following the withdrawal of the UK from its structures.
Jersey’s agreements to market access for financial services have been built up over numerous years, and those agreements will remain post-BREXIT. It was testament to our world-class regulatory environment that we were shortlisted of four jurisdictions for AIFMD passporting, giving island firms access to European markets. We need to work to maintain this.
The fact that we already secured third country access to Europe allows certainty are previewed – our position is the same today as it was yesterday morning and will remain so.
Certainty is a valuable commodity and it stands us in good stead in the coming years.
As of tonight, relationship with the EU and the UK is therefore business as usual.
Jersey’s stability regardless of uk market fluctuations in the short term
markets are expected in the event of a vote to leave the EU.
Markets are beginning to stabilise mad the supposed stock market ended today down 2%. In Economy ,Amy look for than the bold assertions of commentators. Obviously things can change but that is the situation as of tonight.
The notice of resignation by the Prime Minister with p in place a clear timetable lead the renegotiation and withdrawal the UK from the EU will provide some stability to the UK market.
Over time, history tells uskkkThe Governor of the Bank of England issued a statement this morning on the stability of the UK economy and liquidity of UK banks.
Jersey’s role as a significant source of liquidity is beneficial to the aims of the Bank of England in this regard and indicates we will be as important, if not more so, to the UK in the future.
Jersey’s financial services industry has adapted to significant changes over recent years. After having been through the worst financial crisis since the Second World War we have shown our resilience.
We are adaptable and retain the excellent financial stability to deal with any change.
Our legislation to enact innovative sound virtual currency legislation earlier this week, will allow good businesses to operate in Jersey. This has garnered international attention, helping companies to set up and find customers. There will be much of this activity to come to promote jobs and growth.m
Turning back to finance, we have returned to almost record numbers in employment as islanders have been retrained and moved into new areas of work. Our growth figures from last year of 5% are comparable to those of a tiger economy and show that we have much to be hopeful about.
The Jersey authorities will work closely with the financial services industry to ensure Jersey retains a positive relationship with the U.K. and global community.
As of tonight, clear messages had been made by Jersey ministers of stability and confidence back up by evidence.
I’ll update the finance and digital sectors as necessary. I want to assure all of the plans and efforts to defend and protect the island’s interests.
At the dusk of a historical day in London, we still can be confident of our future.