Ogier

Saint Helier

Jersey, the largest of the Channel Islands, is one of the world's major international finance centres. The successful combination of stability and reliability has kept Jersey at the forefront of global finance for almost half a century. Government determination to encourage high quality business to the Island, and the support offered by the sophisticated and comprehensive infrastructure of laws and regulations, combine to promote investor confidence.

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Updates

Company & Commercial

Court rules on limitation period for breach of directors' duties
Jersey | 13 August 2018

The Jersey limitation period for claims against directors for breach of duty under Article 74 of the Companies (Jersey) Law 1991 has not been definitively decided by the Jersey Royal Court. However, the UK High Court recently found that the prescription period for claims against directors of Jersey companies for breach of their duties under Article 74 was 10 years. While this decision is not binding on the Jersey courts, it is likely to carry considerable weight.

Corporate Finance/M&A

Company demergers: a guide to the new regime
Jersey | 31 October 2018

The recently enacted Companies (Demerger) (Jersey) Regulations introduce a new demerger regime for Jersey companies. The new regime will be of particular interest to those who use, or are considering using, Jersey companies in their structures. It makes the use of a Jersey company more flexible and has a range of potential uses, including implementing a pre-sale reorganisation.

Employment & Benefits

Can I enforce a dress code at work?
Jersey | 21 February 2018

Employers can enforce dress codes only within the confines of the discrimination law. For example, a requirement for a female receptionist to wear high heels is illegitimate since no equivalent requirement is placed on male employees. Employers that want to enforce a dress code should consider the discrimination law and whether their proposals meet it. A recent Jersey case illustrates how this works.

Are you too interested in former employees' post-termination restrictions?
Jersey | 08 November 2017

Lawyers are often asked to review employment contracts, including post-termination restrictions. It is increasingly common to see covenants that either restrict the former employee from holding any interest in a competing business or limit the amount of shareholding that they can have. If a contract uses this language, it could lead to the entire restrictive covenant being unenforceable.

Insolvency & Restructuring

Cross-border insolvency and restructuring
Jersey | 03 August 2018

As a jurisdiction, Jersey is at the heart of cross-border insolvency and restructuring. Inevitably, situations arise where insolvent companies' assets or important evidence are located overseas, or an overseas liquidation regime would be best for creditors. Conversely, there will be situations where a foreign insolvency process requires steps to be taken in Jersey.

Litigation

Important changes to civil procedure
Jersey | 14 August 2018

In Summer 2017 Jersey's Royal Court Rules were amended and 11 new practice directions came into force. These aim to improve access to justice, streamline the civil justice process and, where possible, reduce the risks and costs associated with litigation by encouraging the early resolution of cases to avoid court proceedings.

Private Client & Offshore Services

Z Trusts judgment: whose rights take priority when a trust is insolvent?
Jersey | 08 August 2019

The Jersey Court of Appeal recently handed down a long-awaited judgment in the Z Trusts case. The decision considers important questions regarding the equitable rights of former trustees and whether those rights have priority over the rights of other claimants to the assets of a trust (including successor trustees) whose liabilities exceed its assets. As such, trustees must consider the practical implications of this judgment and whether and how they should be mitigated.

Jersey Royal Court rules on its powers to restrict parties that withdraw trust proceedings to start afresh
Jersey | 01 August 2019

The Jersey Royal Court recently ruled on the extent of its powers to restrict a party that withdraws proceedings to start afresh in a judgment that considered, for the first time, the implications of a 2014 English Court of Appeal decision on the public interest in there being finality in litigation. This is an important decision for maintaining the public interest in the finality of litigation and the efficient administration of justice.

First-time scrutiny by Jersey Royal Court of Channel Islands financial ombudsman decision
Jersey | 04 July 2019

The first-ever challenge to a decision of Channel Islands Financial Ombudsman Douglas Melville has been heard by the Jersey Royal Court. The court upheld the ombudsman's decision that local mortgage broker and lender Future Finance pay two individuals more than £63,000 in compensation.

Jersey planning appeals: your questions answered
Jersey | 27 June 2019

Anyone that has been refused planning or building permission or disagrees with a condition that has been attached to a planning or building permission or anyone that owns or occupies a building or land where a building, place or tree has been listed can appeal against a planning decision. However, Jersey planning appeals raise numerous questions regarding costs and the appeal process.

Update on economic substance rules for Jersey fund managers
Jersey | 20 June 2019

The Taxation Law 2019 has introduced new economic substance requirements which apply to certain Jersey tax-resident companies. The requirements were passed to comply with the EU Code of Conduct Group on Business Taxation for the purpose of demonstrating that the profits generated by Jersey companies which carry on certain specified geographically mobile activities are commensurate with their economic activities and substantial economic presence in Jersey.

The role of legislation in environmental protection and the Jersey legal framework
Jersey | 06 June 2019

Jersey's environmental legislation covers areas including water pollution, nuisance, planning, wildlife and waste disposal. Further, the minister for planning and the environment has the power to exercise enforcement in a number of ways. This system ensures that all development within Jersey is carried out in accordance with the local legislation and any specific conditions imposed by the minister. However, even with active and engaged enforcement, legislation can only go so far.

Don't delay – Jersey's Royal Court rules that time is a factor when deciding whether to exercise its discretion on grounds of mistake
Jersey | 09 May 2019

A recent Royal Court judgment has indicated that delays in bringing an application to set aside a transfer of property to a Jersey trust due to mistake will be considered by the court when exercising its discretion as to whether to grant relief. In particular, this decision clarifies that delay is a factor that the court will consider when determining whether the mistake is of so serious a character as to render it just to make a declaration setting aside a disposition into trust.

At a glance guide to Jersey wills for non-domiciled individuals
Jersey | 18 April 2019

Personal assets that most commonly need to be accessed in Jersey following the death of a non-domiciled person are shares in Jersey companies and Jersey bank accounts and investments. If individuals are domiciled outside Jersey, they need not prepare a separate will to cover their Jersey personal estate if they already have a valid one which covers their worldwide personal estate; however, doing so can offer significant benefits.

Undue influence affecting settlors in exercising powers of revocation
Jersey | 11 April 2019

A recent Royal Court decision arose out of an attempt by the settlors of trusts to exercise their power to revoke the trusts. The trustee in this case was concerned and so petitioned the Royal Court for directions. Among other things, the court's decision highlights that trustees should be aware of how a trust fund might be distributed on revocation of a trust. Trustees should also review their terms and conditions of business to ensure that they are protected against any potential adverse consequences.

Asset protection trusts – why the recent interest?
Jersey | 04 April 2019

It is fair to say that the term 'asset protection trust' has developed as an informal description of a trust, the primary purpose of which is to safeguard trust assets from claims made by creditors and others usually against the settlor or beneficiaries of a trust. This article discusses what an asset protection trust is and what, over and above a normal trust, it is seeking to achieve. It also considers to what extent a Jersey trust, once established, will protect assets from creditor claims.

Jersey substance proposals – fund managers' perspective
Jersey | 28 February 2019

New proposed requirements for an economic substance test for Jersey tax-resident entities have been published to meet the requirements of the EU Code of Conduct Group. Fund vehicles themselves are out of scope, but it is expected that most fund manager clients will be in scope. Therefore, consideration will need to be given to the level of activity carried out in Jersey, with specific consideration being given to outsourcing arrangements.

Jersey substance proposals – company perspective
Jersey | 28 February 2019

New proposed requirements for an economic substance test for Jersey tax-resident entities have been published to meet the requirements of the EU Code of Conduct Group. Among other things, specific consideration should be given to outsourcing arrangements, to each company within a relevant structure and to updating policies and procedures.

Banking and finance perspective on Jersey substance proposals
Jersey | 20 December 2018

New proposed requirements for an economic substance test for Jersey tax-resident entities have been published to meet the requirements of the EU Code of Conduct Group. The reforms are set to come into force on 1 January 2019, subject to approval by the States of Jersey, and establish new tests for certain tax-resident companies carrying on relevant activities in respect of demonstrating that they are directed and managed in Jersey, and that their core income generating activities are undertaken here.

Company demergers: a guide to the new regime
Jersey | 01 November 2018

The recently enacted Companies (Demerger) (Jersey) Regulations introduce a new demerger regime for Jersey companies. The new regime will be of particular interest to those who use, or are considering using, Jersey companies in their structures. It makes the use of a Jersey company more flexible and has a range of potential uses, including implementing a pre-sale reorganisation.

Jersey limited partnerships
Jersey | 04 October 2018

Limited partnerships in Jersey are governed by the Limited Partnerships (Jersey) Law 1994, as amended. The main feature of limited partnerships, as the name suggests, is the limited liability afforded to the limited partners. In addition, the law is highly flexible, such that the partners in a Jersey limited partnership are free to agree the terms attaching to the structure and operation of the partnership between them. For this reason, Jersey limited partnerships are popular vehicles.

New law enables valid execution of will when person cannot physically sign their name
Jersey | 23 August 2018

The Signing of Instruments (Miscellaneous Provisions) Jersey Law 2018 was recently passed to enable people to validly execute legal documents (eg, a will or power of attorney) when they are physically incapable of signing their name. It brings about the much-needed change in law that was brought to light in 2015, when a local resident passed away after a paralysis of his hands had rendered him physically – but not mentally – incapable of signing a will.

Court rules on limitation period for breach of directors' duties
Jersey | 09 August 2018

The Jersey limitation period for claims against directors for breach of duty under Article 74 of the Companies (Jersey) Law 1991 has not been definitively decided by the Jersey Royal Court. However, the UK High Court recently found that the prescription period for claims against directors of Jersey companies for breach of their duties under Article 74 was 10 years. While this decision is not binding on the Jersey courts, it is likely to carry considerable weight.

Important changes to civil procedure
Jersey | 09 August 2018

In Summer 2017 Jersey's Royal Court Rules were amended and 11 new practice directions came into force. These aim to improve access to justice, streamline the civil justice process and, where possible, reduce the risks and costs associated with litigation by encouraging the early resolution of cases to avoid court proceedings.

Reform of civil forfeiture orders
Jersey | 02 August 2018

MONEYVAL's 2015 inspection of Jersey's anti-money laundering regime and its subsequent report issued in May 2016 encouraged Jersey legislators and regulators to actively prosecute more financial crime and, in particular, introduce a non-conviction-based confiscation regime to apply in parallel with the conviction-based system. The Draft Forfeiture of Assets (Civil Proceedings) Jersey Law is a paradigm shift in regulatory approach to achieve the objectives set by MONEYVAL.

Cross-border insolvency and restructuring
Jersey | 02 August 2018

As a jurisdiction, Jersey is at the heart of cross-border insolvency and restructuring. Inevitably, situations arise where insolvent companies' assets or important evidence are located overseas, or an overseas liquidation regime would be best for creditors. Conversely, there will be situations where a foreign insolvency process requires steps to be taken in Jersey.

Disability to be a protected characteristic under Jersey discrimination law
Jersey | 17 May 2018

Effective from September 1 2018, the Discrimination (Jersey) Law 2013 will be amended to include disability as a protected characteristic. The amending regulations will give individuals the right to complain to the Employment and Discrimination Tribunal when they believe that they have experienced discrimination. While many employers and groups will be familiar with the way that the regulations work, they should be taking steps to ensure that they are compliant ahead of the implementation date.

At a glance: guide to Jersey's new charity law
Jersey | 17 May 2018

The next phase of the Charities (Jersey) Law 2014 was enacted on May 1 2018, allowing entities to finally register as charities under the law. The remaining provisions of the law are expected to come into force on January 1 2019, which will amend Jersey taxation legislation in relation to charities. This is an exciting opportunity for Jersey to reinforce and develop its status as a centre of excellence for philanthropy both in private wealth management and impact investing.

Generation games and avoiding family disputes
Jersey | 05 April 2018

The use of private trust companies is becoming more common as a method of retaining family control through the generations. This, of course, all needs to be balanced against tax and reporting considerations, as well as practical ones. That said, however good the adviser, it is difficult to plan for family disputes; therefore, the main emphasis should be on maintaining flexibility so that the trustee can react to changes of circumstances and wealth passing through the generations.

Changes to JFSC codes of practice
Jersey | 05 April 2018

The revised Jersey Financial Services Commission codes of practice came into force on March 21 2018. As a matter of urgency, regulated businesses should therefore review the changes to the codes and consider whether any new implementation measures are necessary. The changes to the codes have considered industry feedback and include both new and revised regulations to align Jersey with the Group of International Finance Centre Supervisors standard.

Capacity and Self-Determination (Jersey) Law
Jersey | 29 March 2018

The Capacity and Self-Determination (Jersey) Law, which is due to come into effect in October 2018, will give people the opportunity, while they still have the capacity, to make their own decisions regarding their financial and personal affairs and welfare. It provides a framework that will give people the opportunity to make their own decisions in respect of medical treatment insofar as possible, including advance decisions to refuse treatment.

JFSC Supervision Examination Guide
Jersey | 29 March 2018

The Jersey Financial Services Commission (JFSC) recently published its Supervisory Examination Guide. The guide, which is effective immediately, gives a detailed overview of the supervisory examinations conducted by the JFSC. Examinations are a key tool used by the JFSC to detect and deter breaches of regulatory standards and improve compliance.

What inheritance rights does an adopted child have?
Jersey | 01 March 2018

An adopted child is treated in law as the biological child of his or her adoptive parents and not the child of any other person. In terms of inheritance, this means that any reference to 'children' in adoptive parents' will or wills includes adopted children. If the parents do not leave a will or wills, the adopted child will have the same legal right to benefit from their estates as any biological child would have.

Buying Jersey property with a partner who has no housing qualifications
Jersey | 01 March 2018

An unmarried couple, both with housing qualifications, can buy property in joint names and have the security of jointly owning their home. For unmarried couples where only one partner has housing qualifications, the position is more difficult. For freehold property, only the qualified partner can own it. It is therefore important that couples in this situation enter into an equity agreement in order to protect the unqualified partner's position so far as legally possible.

How to handle assets in a client's estate
Jersey | 22 February 2018

Jersey is a separate legal jurisdiction from the United Kingdom, with a separate body of law. Many clients do not realise this, which can cause issues when it comes to administering their estates. The law of succession and probate in Jersey differs significantly from that in the United Kingdom and creates responsibilities for the executors and administrators of those who leave behind assets in Jersey.

Can I enforce a dress code at work?
Jersey | 22 February 2018

Employers can enforce dress codes only within the confines of the discrimination law. For example, a requirement for a female receptionist to wear high heels is illegitimate since no equivalent requirement is placed on male employees. Employers that want to enforce a dress code should consider the discrimination law and whether their proposals meet it. A recent Jersey case illustrates how this works.

Legislative changes to look out for in 2018: a Q&A
Jersey | 15 February 2018

The Capacity and Self-Determination (Jersey) Law 2016, due to come into effect in April 2018, will be a long overdue update to the old customary laws. This new law will give people the opportunity, while they still have capacity, to make decisions regarding their financial and personal affairs and welfare which will take effect should they lose capacity. There are also likely to be amendments to the Wills and Succession (Jersey) Law 1993, which was the subject of an independent report in 2015.

Probate for residents: what you need to know
Jersey | 15 February 2018

Many people do not realise what is involved in administering a person's estate until they have to do it themselves and they encounter a minefield of previously unknown terminology and complex legal procedures. For example, in Jersey, 'probate' is the term used for both the grant of probate itself and the process of applying for the right to deal with the estate of someone who has passed away.

Resigned trustee wins court approval for reappointment – what this means for trusts industry
Jersey | 21 December 2017

The Royal Court recently assessed a case where the representor of a trust had sought to retire as trustee and provided the notice required under the terms of the trust to the company. Despite the fact that the trustee had reminded the company, no replacement was lined up when the company was dissolved. The case focused on the distinction between a trustee's fiduciary responsibilities and its powers and discretions provided for by the terms of a trust.

Are you too interested in former employees' post-termination restrictions?
Jersey | 09 November 2017

Lawyers are often asked to review employment contracts, including post-termination restrictions. It is increasingly common to see covenants that either restrict the former employee from holding any interest in a competing business or limit the amount of shareholding that they can have. If a contract uses this language, it could lead to the entire restrictive covenant being unenforceable.

Reinstatement of a company
Jersey | 02 November 2017

The procedure governing the reinstatement of a dissolved Jersey limited company is contained in the Companies (Jersey) Law 1991. Where a company has been dissolved or, most commonly, struck off the register by the registrar of companies after failing to file an annual return, the Royal Court has the power to declare the dissolution void and order the reinstatement of the company.

Setting aside subsequent transfers to trusts – statutory law of mistake in operation
Jersey | 26 October 2017

The enactment of the Trust (Amendment 6) (Jersey) Law 2013 saw Jersey introduce a statutory basis for relief to be granted for mistake in the form of Article 47E of the Trusts (Jersey) Law 1984. Although there have been a number of Royal Court decisions in this area since then, a recent decision represents the first time that the court has granted relief for mistake squarely within Article 47E.

Trust variation to benefit children of same-sex and unmarried parents – facts, considerations and implications
Jersey | 19 October 2017

A recent Jersey Royal Court decision provides welcome guidance with respect to Article 47 applications to vary a trust. In particular, the court considered the interplay between a settlor's wishes and the court's assessment of 'benefit', a point which it had never previously considered. The decision also examines Article 47 applications alongside public policy considerations affecting a modern society.

Ongoing responsibilities under Register of Beneficial Ownership and Control
Jersey | 19 October 2017

The deadline recently passed for legal entities to file details of beneficial ownership and control with Jersey's Companies Registry. Under the revised rules, even if there had been no change to the relevant information since incorporation, legal entities were still required to file the relevant form. While the deadline for the initial disclosure has passed, there are ongoing compliance obligations for affected entities to keep in mind.

Tax residency of Jersey companies – reminder and update
Jersey | 21 September 2017

A recent UK tax case involving three Jersey companies sounds a note of caution with regard to interaction between offshore subsidiaries and UK parent companies and the role of directors. The case serves as a timely reminder that Jersey resident directors cannot provide a purely 'administrative' service for the benefit of the parent owner.

Ultra-high-net-worth clients and the call for bespoke structuring
Jersey | 06 July 2017

According to a 2016 report, 212,615 individuals in the world hold a total of over $30 trillion in wealth. By 2020 the number of ultra-high-net-worth individuals is anticipated to reach 318,000 with compound annual growth of 9%. It seems clear that clients will continue to want structuring options in stable and established jurisdictions. This means that Jersey remains an attractive proposition for Middle East and Far East ultra-high-net-worth individuals.

Differences between Jersey and English processes on probate and wills of real estate
Jersey | 25 May 2017

Jersey's law of inheritance and probate differs significantly from that of England and creates responsibilities for the executors and administrators of those who leave movable assets in Jersey on their death. This affects inheritance and probate issues, and non-Jersey practitioners can minimise complexities and delays by taking advice and guidance on Jersey law at an early stage.

Practice and trends in restructuring and insolvency law
Jersey | 25 May 2017

Jersey has a familiar range of legal processes and remedies for the restructuring and insolvency of corporations. While certain reforms are often discussed, Jersey seeks to position itself as a jurisdiction with a system in which creditors can have confidence. Further, the Royal Court has been willing to engage in cross-border insolvencies, whether by granting recognition to overseas office holders or seeking assistance from other jurisdictions.

Strategic focus on high-quality regulation continues to yield dividends
Jersey | 18 May 2017

While the Panama Papers led to headlines about the offshore world, the work that has been done to carve out Jersey as a financial services centre that bases its reputation and 'sales pitch' on the strength and quality of its regulation is continuing to pay off. That work is going to continue and themes for 2017 include work for international families looking for bespoke structures to facilitate succession planning, asset protection and wealth structuring.

Jersey real estate – an investment that doesn't go out of fashion
Jersey | 18 May 2017

Investment into Jersey property and, in particular, into office developments in Saint Helier, has continued to be popular. This points to an appetite for high-quality, large-scale investment properties backed by solid covenants. With the market steadily improving, the island is looking forward to increased investment activity across the investment property sector. Maintaining an attractive investment market in the context of the relevant tax principles' impact on investment will be a vital part of this.

Role of non-executive directors against ever-changing regulatory backdrop
Jersey | 11 May 2017

The importance of non-executive directors, while sometimes questioned, is fairly well established. The guidelines for Jersey directors go as far as to suggest that boards composed wholly of full-time executive directors are potentially weak if they become insular. Clearly the expectation is high: non-executive directors contribute something extra, something more, than executive directors alone. So what are the duties and responsibilities of non-executive directors in 2017?

Jersey Financial Services Commission – revised outsourcing policy
Jersey | 11 May 2017

The Jersey Financial Services Commission's recently published outsourcing policy achieves much by doing away with the distinction between delegation and outsourcing, which has historically been a source of confusion for registered persons conducting financial services business in Jersey. However, it has added an extra layer of regulatory burden on registered persons and non-regulated entities alike by broadening the definition of 'outsourced' activity.

Jersey private funds
Jersey | 27 April 2017

With the release of the Jersey Private Funds (JPF) Guide, Jersey has introduced a welcome simplification of its funds regime by providing for a single JPF product. The JPF will replace the three existing fund products which cater to private funds in Jersey, namely Control of Borrowing (Jersey) Order only funds, private placement funds and very private funds.

Arrangements to deceive as to beneficial ownership will not be upheld
Jersey | 13 April 2017

The Royal Court recently clarified that any arrangement which detracts from the ability of regulators or law enforcement authorities to identify beneficial owners of companies or beneficiaries of trusts will not be recognised on grounds of public policy. This judgment sends a clear message that the court will not allow regulatory and enforcement systems to be undermined by arrangements designed to mislead the relevant authorities and reiterates that attempts to do so will lead to criminal penalties.

What the first Jersey insolvency case of its kind in 40 years means for 'back door' to English administration
Jersey | 06 April 2017

A trilogy of recent decisions concerning the high-profile insolvency of a Jersey company has provided a salutary reminder to the international insolvency community and to creditors of Jersey companies that Jersey has a sophisticated insolvency regime which will be used in cross-border insolvencies. These decisions demonstrate that it cannot be assumed that the door to UK administration is always going to be open.

General Data Protection Regulation in Jersey: what is it, why should I care and what should I do about it?
Jersey | 30 March 2017

While the media's attention has recently been lavished on Brexit and President Trump, there is one news story that will affect businesses across Jersey sooner than might be expected: the implementation of the General Data Protection Regulation. Jersey businesses must ensure that they comply with the new regulation when it comes into force in May 2018. That means starting work now to assess the impact of the regulation and decide what changes will be needed to ensure compliance.

Country-by-country reporting – Jersey legislation
Jersey | 23 March 2017

The States of Jersey recently passed the country-by-country reporting regulations in order to demonstrate Jersey's commitment to the Organisation for Economic Cooperation and Development's Base Erosion and Profit Sharing project. Among other things, the regulations require Jersey entities and, where applicable, constituent entities to notify and, if required, to file a country-by-country report.

How to deal with assets left in Jersey by a deceased UK resident
Jersey | 23 March 2017

A formal grant of probate issued in the United Kingdom is not sufficient to release assets held in Jersey unless the Jersey estate is worth less than £10,000. On production of a UK grant of probate, the clerks will issue a Jersey grant of probate through a fast-track process; however, for Jersey property, a will that has been court-sealed and certified in accordance with Jersey law is required.

Jersey funds legal and regulatory quarterly update
Jersey | 26 January 2017

Among other developments in the legal and regulatory sector, the Jersey Financial Services Commission (JFSC) recently issued a consultation paper in relation to the proposed rationalisation and consolidation of Jersey's private funds and unregulated funds regimes. The JFSC also recently received feedback regarding whether Jersey should introduce a regime equivalent to the EU Markets in Financial Instruments Directive.

Court sets aside subsequent transfers due to mistake
Jersey | 10 November 2016

The Royal Court recently applied Jersey's statutory mistake provisions for the first time in order to set aside transfers of shares to Jersey trusts, which had been made a number of years after the trusts were established and in circumstances where the mistake gave rise to contingent, rather than crystallised, tax liability. The court also clarified that, notwithstanding the fact that foreign law governed the transfers, the question of their validity had to be determined under Jersey law.

Virtual currency regulation takes effect
Jersey | 27 October 2016

The value and volume of virtual currency trading is skyrocketing globally, but regulating virtual currencies and virtual currency exchangers is challenging. Under the new Proceeds of Crime (Miscellaneous Amendments) (Jersey) Regulations 2016, exchangers must comply with the island's anti-money laundering and terrorist financing laws, regulations, policies and procedures.

Dishonest or fraudulent breaches of duty know no limits
Jersey | 27 October 2016

Limitation is a perennial concern for plaintiffs, and knowing when time started to run is particularly troublesome where plaintiffs were unaware of their potential claim due to a lack of information or, worse, dishonesty. The Royal Court recently indicated that neither a trustee of an express trust nor a fiduciary who has acted dishonestly in breach of his or her trust or fiduciary duties can successfully plead a limitation defence.

£10,000 compensation cap applies per complaint, not per overall claim
Jersey | 20 October 2016

A recent Jersey Employment and Discrimination Tribunal case has provided guidance on the Discrimination (Jersey) Law 2013. The case highlights some important points for businesses to remember, including that the £10,000 limit per complaint applies to each type of complaint (ie, direct discrimination, indirect discrimination or harassment).

Welcome to the virtual currency sandbox: let's play
Jersey | 20 October 2016

While virtual currencies may divide opinion, it is undeniable that they are booming and becoming part of the mainstream. Jersey has answered the question of how to seize this opportunity by introducing a 'regulatory sandbox' for developers and innovators to build, test and experiment with products, services, business models and delivery mechanisms in a live environment without immediately incurring all of the normal regulatory consequences and costs.

Jersey managers and funds marketing into Europe
Jersey | 01 September 2016

The European Securities and Markets Authority recently recommended that Jersey be included in the first wave of third countries whose managers can seek authorisation for the marketing passport under the EU Alternative Investment Fund Managers Directive. Once the marketing passport becomes available, Jersey will be able to offer a broad range of marketing and organisational options to managers, whether they are targeting European or global investors.

Funds legal and regulatory quarterly update
Jersey | 25 August 2016

The Jersey Financial Services Commission (JFSC) recently released consultations regarding amendments to codes of practice and the potential introduction of an EU Markets in Financial Instruments Directive equivalent regime. The JFSC also sought input, among other things, on proposed changes to define key terms in order to remove the distinction between delegation and outsourcing in relation to certified funds and fund services businesses.

ESMA advises "no significant obstacles" to application of AIFMD marketing passport to Channel Islands
Jersey | 25 August 2016

After much anticipation, the European Securities and Markets Authority (ESMA) has published further advice in relation to the application of the EU Alternative Investment Fund Managers Directive (AIFMD) passport. ESMA concluded that there are no significant obstacles impeding the application of the AIFMD passport to Jersey, which is one of only five jurisdictions to achieve an unqualified assessment.

Remedies for mistake under Jersey law
Jersey | 14 July 2016

As a matter of law, the doctrine of mistake allows a settlor that settles property on trust to apply to the court to set aside or unwind transactions where there was a mistake on the part of the settlor, the settlor would not have entered into the transaction but for the mistake or the mistake was of so serious a nature as to render it unjust. The Royal Court recently dealt with such a case, finding that a mistake regarding the tax consequences of a transfer to a trust is considered a mistake.

Crowdfunding: an opportunity for Jersey?
Jersey | 14 July 2016

Crowdfunding is a way in which individuals and businesses raise money to finance or re-finance their activities through online platforms. These online platforms are often known as 'crowdfunding platforms' and typically adopt either a loan-based model or an investment-based model to attract a broader range of individual funders. While Jersey has no crowdfunding platform, it could become one of the keys to developing Jersey's digital economy.

Continuing obligations – updates on Chapter 8 debt securities
Jersey | 07 July 2016

The Channel Islands Securities Exchange (CISE) has adopted a flexible and pragmatic approach to regulation and developed listing rules that places a premium on clarity and an appropriate level of corporate governance. This update highlights the principal requirements and key issues to be considered when listing debt securities on the CISE, including recent updates to the CISE's annual fees.

Migration of companies in and out of Jersey
Jersey | 07 July 2016

The Companies (Jersey) Law 1991 allows a company registered in a foreign jurisdiction to migrate from its home jurisdiction to Jersey. Jersey companies may also migrate to a foreign jurisdiction and continue as a foreign incorporated company. However, the procedure to migrate out of Jersey can be lengthy and thus companies must liaise with their foreign advisers to ensure that all relevant formalities are met.

Testing Jersey's firewall
Jersey | 05 May 2016

The Royal Court recently considered orders made by the English Family Court in relation to a Jersey discretionary trust and therefore the operation of the so-called 'firewall' provisions contained in the Trusts (Jersey) Law 1984. The court confirmed that trustees are not prevented from taking steps which are in the best interest of their beneficiaries simply because doing so might also be seen as giving effect to a decision by a foreign court.

Funds legal and regulatory quarterly update
Jersey | 28 April 2016

The Jersey Financial Services Commission (JFSC) recently delivered its 2016 Business Plan to the financial services industry, setting out the JFSC's key priorities for 2016. Further, the Jersey Common Reporting Standard (CRS) regulations, which provide details of the jurisdictions committed to the adoption of CRS, have been amended. Further amendments are expected as jurisdictions confirm their intentions.

Costs in trust proceedings – further Royal Court guidance where fiduciary powers not validly exercised
Jersey | 24 March 2016

The Royal Court recently issued a judgment on the costs of proceedings, in which it reviewed and applied the key principles concerning the recoverability of costs by fiduciaries and beneficiaries in cases of this kind. The judgment shows the court's willingness to look at the substance of matters when assessing cost consequences, rather than slavishly seeking to apply categorisations or hard rules.

CISEA: Chapter 8 debt listings
Jersey | 17 March 2016

The Channel Islands Securities Exchange Authority Limited (CISEA) was established with the intention of providing recognised facilities for the listing and trading of a broad range of debt securities. It currently lists equity-linked notes, convertible notes, payment-in-kind notes, eurobonds and warrants. This update highlights the principal requirements and key issues to be considered when listing debt securities on the CISEA.

Funds legal and regulatory update
Jersey | 11 February 2016

The Jersey Financial Services Commission (JFSC) recently published a consultation paper which proposes amendments to various codes of practice, including to the codes' notification requirements and the way in which consumer complaints are handled. Further, the JFSC has issued regulations to give effect to the Organisation for Economic Cooperation and Development's Common Reporting Standard.

Aircraft registry established
Jersey | 11 February 2016

The Jersey Aircraft Registry was launched on November 6 2015. The registry provides a platform for the registration of aircraft, as well as the creation, registration and enforcement of aircraft mortgages and aircraft engine mortgages. Further, the registry provides lenders with the opportunity to finance the lease or purchase of aircraft and aircraft engines which are registered in Jersey.

Escaping from mistakes over tax consequences in respect of Jersey trusts
Jersey | 04 February 2016

The Royal Court recently considered the extent of relief available under the doctrine of mistake in Jersey trust law in circumstances where the mistake led to adverse tax consequences for the settlors. The court demonstrated the extent of the considerations that it will take into account, finding that even where a lack of financial impact existed, justice lay with setting aside the transfers and holding that the funds were held on bare trust for the settlors.

Trust removal proceedings – service out of jurisdiction and effect of administration clauses
Jersey | 04 February 2016

The Royal Court recently had cause to revisit the principles applied to trust proceedings where service out of the jurisdiction is considered and construing a governing law or forum for administration clause. Although this case involved some exceptional circumstances, the Royal Court's decision demonstrates that it continues to adopt a clear analytical approach to issues surrounding where trust disputes should be heard.

Channel Islands Securities Exchange introduces SPAC listing product
Jersey | 10 December 2015

The rules for listing debt securities on the Channel Islands Securities Exchange contain requirements and features for special purpose acquisition companies, including shares, trading and share rights, obligations for management and directors, requirements in relation to escrow and expenses and requirements during acquisitions.

Funds legal and regulatory update
Jersey | 12 November 2015

The European Securities and Markets Authority recently concluded that no obstacles exist in relation to the extension of the Alternative Investment Fund Managers Directive's passporting regime to Jersey. Further, the definition of 'alternative investment funds' in the Alternative Investment Funds (Jersey) Regulations 2012 has been amended to include limited partnerships registered in England or Scotland, under certain conditions.

Continuing obligations – Chapter 8 debt securities updated
Jersey | 05 November 2015

Company directors that have or are listing debt securities under Chapter 8 of the Listing Rules should be aware of the continuing obligations that issuers must observe once any of their securities have been admitted to listing. This update sets out these continuing obligations, including general disclosure obligations, the duty to notify and annual fees.

Royal courts approve cross-border pooling of insolvent companies' assets and liabilities
Jersey | 29 October 2015

The Royal Courts of Guernsey and Jersey recently held that where the affairs of two insolvent companies (incorporated in Jersey and Guernsey, respectively) are so intermingled that the expense of unravelling them would adversely affect distributions to creditors, the companies may be treated as a single entity. These decisions represent a welcome development in cross-bailiwick cooperation and insolvency and restructuring law.

No alternative: when can a trustee surrender its discretion to the court?
Jersey | 08 October 2015

In a recent case before the Royal Court, the trustee was concerned that there was a conflict of interest between limiting its liability and its duties to the trust. As such, it sought to surrender its discretion to the court in relation to the powers outlined in the divorce agreement. The court accepted that no sensible alternative existed and thus granted the surrender. This judgment serves as a reminder that trustees should investigate whether any sensible alternatives exist before proceeding.

Dormant account law to be introduced
Jersey | 01 October 2015

Banks may soon be able to close dormant bank accounts by depositing the account balance into a central fund. Any money that is not reclaimed from the fund will be used for charitable and social purposes. The draft law will allow banks to remove the liabilities associated with dormant accounts from their balance sheets.

Application to vary a trust under Trusts (Jersey) Law 1984
Jersey | 01 October 2015

The Royal Court was recently asked to approve variations to a settlement on behalf of the settlement's minor, unborn and unascertained beneficiaries in accordance with the Trusts (Jersey) Law 1984. In finding that the variations in question were for the benefit of the relevant beneficiaries, the court demonstrated that tax planning and the management of trust funds may also be considered benefits under the act.

Treatment of companies managed outside Jersey
Jersey | 24 September 2015

In light of the United Kingdom's plans to reduce its corporation tax rate, the Jersey government recently announced its commitment to identifying appropriate legislative changes to ensure that Jersey companies managed and controlled in the United Kingdom or elsewhere will not be deemed resident in Jersey. While these changes have not yet been identified, they are expected to include a reduction of Jersey's 20% corporation tax rate.

The ombudsman cometh – update
Jersey | 24 September 2015

Jersey's first Financial Services Ombudsman will begin investigating and resolving complaints on November 16 2015. Once the ombudsman scheme is in operation, the ombudsman will adjudicate complaints from individual customers in relation to financial services provided in Jersey and will be able to make awards to return complainants to the position in which they would have been had the problem not occurred.

Family-friendly rights and sex discrimination
Jersey | 17 September 2015

Statutory provisions recently came into force which grant employees family-friendly rights – including maternity leave, paternity leave and the right to request flexible working – for the first time. These rights came into effect at the same time as sex discrimination legislation. If employers are flexible with regard to these rights, they can use them to manage their workforce effectively.

Tracing a new path: the final word
Jersey | 17 September 2015

The Privy Council has handed down a landmark judgment concerning the doctrine of tracing, which confirms the approach taken by the Royal Court and the Jersey Court of Appeal regarding the previously unsettled question of whether so-called 'backwards tracing' is permissible under Jersey law. For those holding assets for others, this judgment underlines the importance of understanding the ultimate source of funds received.

A guide to Jersey property unit trusts
Jersey | 27 August 2015

Jersey property unit trusts (JPUTs) are frequently used to acquire and hold interests in UK commercial real estate, due to the ease with which they can be established and the fiscal advantages that they can offer. These fiscal advantages, combined with the flexibility to tailor the terms of the trust instrument in order to meet commercial and operational requirements, are key to the popularity of JPUTs.

Reduction of capital by Jersey companies
Jersey | 30 July 2015

One of the many improvements made by the Companies (Amendment 11) (Jersey) Law 2014 was to allow Jersey companies to carry out a reduction of capital without court approval. While the old mechanism for court approval is still in place, the new procedure allows Jersey companies to reduce their capital accounts more easily and supplements their ability to distribute from certain capital accounts.

Jersey trusts and divorce – submission and exclusion
Jersey | 16 July 2015

Two linked Jersey Royal Court judgments have provided further insight into the court's exercise of its supervisory jurisdiction over Jersey trusts in relation to trustees faced with overseas divorce proceedings concerning members of the beneficial class. The trustee sought the court's blessing for two momentous decisions: to submit to the jurisdiction of an overseas divorce court and to exclude the wife as a beneficiary.

Update on civil liability for breaches of codes of practice
Jersey | 09 July 2015

The Financial Services Commission (Jersey) Law 1998 was recently amended to include provisions that enable the Jersey Financial Services Commission to impose civil financial penalties for material contraventions of the codes of practice and the Anti-money Laundering and Counter-terrorist Financing Handbook. If they have not already done so, registered persons should conduct a thorough gapping analysis to ensure compliance with the higher standards.

Review of 2014 amendments to substantive offences under Proceeds of Crime Law
Jersey | 21 May 2015

The reform of Jersey's anti-money laundering (AML) practices and laws has been high on the legislative agenda, particularly after Jersey became a member of the Committee of Experts on the Evaluation of Anti-money Laundering Measures and the Financing of Terrorism (Moneyval). As such, the Jersey Financial Services Commission has introduced new laws in order to strengthen the AML framework and ensure that it is in line with the Moneyval recommendations.

Jersey probate where no Jersey assets?
Jersey | 23 April 2015

A recent Royal Court decision regarding the estate of an individual who died domiciled in Jersey with unadministered assets in Australia has affirmed that the court will direct the judicial greffier to issue a grant of representation in instances where, although there is no Jersey estate requiring administration, the administration of the deceased's estate in other jurisdictions would be adversely affected by the refusal to issue a grant.

New Charities Law – bright new dawn
Jersey | 16 April 2015

Certain parts of the new Charities (Jersey) Law 2014 recently came into force. This represents a quantum leap forward for Jersey in the charity field, as the law has introduced a new test to determine what is considered charitable, has created the post of charity commissioner and the charity tribunal and will introduce standards by which charities operating in Jersey must abide.

Construction of revocation clauses in wills
Jersey | 26 February 2015

The Royal Court recently confirmed that when construing a will, it will aim to ascertain and give effect to the testator's intentions. Thus, when including a revocation clause, lawyers should consider all other wills made by the testator and whether they will be revoked by the new will. However, even where a general revocation clause is included, it may not revoke a previous will where the testator did not so intend.

New managed account regime for hedge fund managers
Jersey | 19 February 2015

The new qualifying segregated managed account (QSMA) regime has introduced an exemption which will enable Jersey-regulated fund managers to be appointed in relation to managed accounts. The exemption will enable fund managers that are already regulated under the Financial Services (Jersey) Law to carry out fund services business and service QSMAs without needing to seek additional regulation.

Enforcement of pre-2014 Jersey security agreements
Jersey | 29 January 2015

The Security Interests (Jersey) Law 2012 came into force on January 2 2014, introducing a new regime for creating security over intangible movables under Jersey law. However, many security packages will include security created pursuant to the Security Interests (Jersey) Law 1983; under the 2012 law, these will continue to be effective security, albeit still governed by the 1983 law.

Updated insolvency procedures for Jersey companies
Jersey | 22 January 2015

The credit crunch has put pressure on a wide range of structures, resulting in lenders, borrowers and other counterparties looking more closely at the impact of possible insolvency proceedings. As Jersey companies are often used in cross-border finance transactions, it is important to be aware of the differences between Jersey and English insolvency procedures.

Chapter 8 debt listings
Jersey | 11 December 2014

The Channel Islands Securities Exchange (CISE) has adopted a flexible and pragmatic approach to regulation and developed Listing Rules that place a premium on clarity and an appropriate level of corporate governance. This update highlights the principal requirements and key issues to be considered when listing debt securities on the CISE.

Funds legal and regulatory update
Jersey | 06 November 2014

The Jersey Financial Services Commission has confirmed that it will consider applications to license limited liability partnerships and has issued guidance on professional indemnity insurance. In addition, the chief minister has confirmed that Jersey has no wish to engage with those seeking to involve Jersey in abusive tax schemes to avoid UK tax.

Continuing obligations for issuers with listed investment fund securities
Jersey | 30 October 2014

It is a prerequisite for listing that an issuer executes a listing undertaking, agreeing to comply with the Listing Rules and, in particular, with all relevant continuing obligations. This update sets out certain continuing obligations that issuers must observe once any of their securities have been admitted to listing.

Trustees and dishonest assistance
Jersey | 16 October 2014

In Nolan v Minerva Trust the Royal Court delivered a salutary reminder of the high standards by which professional service providers in Jersey will be judged and the need for scrutiny, careful reflection and demonstrable independence when taking investment decisions. It also underlined the need to be robust – whatever pressure may be exerted – if there are (or should be) questions about the propriety of a transaction.

Continuing obligations – Chapter 8 debt securities
Jersey | 09 October 2014

Company directors that have or are listing debt securities (as defined in Chapter 1 of the Listing Rules of the Channel Islands Securities Exchange) under Chapter 8 of the Listing Rules should be aware of the continuing obligations that an issuer must observe once any of its securities have been admitted to listing. This update sets out these continuing obligations, including general disclosure obligations, the duty to notify and annual fees.

White Collar Crime

Reform of civil forfeiture orders
Jersey | 06 August 2018

MONEYVAL's 2015 inspection of Jersey's anti-money laundering regime and its subsequent report issued in May 2016 encouraged Jersey legislators and regulators to actively prosecute more financial crime and, in particular, introduce a non-conviction-based confiscation regime to apply in parallel with the conviction-based system. The Draft Forfeiture of Assets (Civil Proceedings) Jersey Law is a paradigm shift in regulatory approach to achieve the objectives set by MONEYVAL.