It is expected that the Companies (Amendment No 4) (Jersey) Regulations 2010 will soon come into force. Among other things, certain amendments to the rules contained in Part 16 of the Companies (Jersey) Law 1991 are being made in response to the impact of the EU Statutory Audit Directive on Jersey-based auditors.
In 2004 the internet gambling business Betonsports Plc was floated on AIM and the profits from the sale of its shares found their way into two Jersey trusts, whose sole trustee at the time was a Jersey trustee. Following the arrest of the company's former owner, Gary Kaplan, an application was made to the Jersey court at the behest of the US Department of Justice for a saisie judiciaire in respect of Kaplan's property in Jersey.
A recent Royal Court of Jersey judgment demonstrates the court's approach to an application to set aside a trust and certain gifts made under it on the grounds of mistake. It also provides some useful guidance on the approach to be taken by convening parties on trust-related applications.
Since the introduction of the Codes of Practice for Fund Services Business and related changes to the funds legislation in Jersey, in most cases a Jersey entity that wishes to carry on fund services business in relation to a publicly offered non-Jersey fund will be able to do so entirely under its Financial Services (Jersey) Law 1998 registration, acting in accordance with the codes.
The Foundations (Jersey) Law 2009 will soon come into force. The law will permit the establishment of Jersey foundations, which will be incorporated bodies that can hold assets, transact business and sue and be sued in their own name. The flexibility of the law makes Jersey an attractive jurisdiction for clients considering establishing a foundation for private wealth management purposes.
As a result of the shortage of liquidity in the bank lending markets, many businesses need additional funding. One source of funds might be a private placement of shares. This update looks at some of the Jersey law issues that may arise in the context of a private placement of shares by a Jersey company.
Companies in the United Kingdom are facing needs to recapitalize their balance sheets and raise money from their assets. Convertible and exchangeable bonds offer a way of meeting these various requirements. Structuring a convertible or exchangeable bond issue using a Jersey cash-box structure can make it easier to implement the bond issue and may also offer other benefits.
Structuring a rights issue for a UK listed company using a Jersey cash box vehicle can make it easier to implement and add to the benefits therefrom. The advantages that a cash box structure offers are flexibility in relation to making the offer and, in relation to the proceeds of the issue of the shares, the availability of merger relief under the UK Companies Act.
With the favourable tax regime for Luxembourg's Holding 1929 companies due to be abolished in 2010, there has been a significant increase in such companies looking to migrate to Jersey. This update summarizes the process by which a Luxembourg Holding 1929 company may be 'continued' as a company in Jersey and the benefits that Jersey can offer.
A person that carries on marketing activity in Jersey in relation to investment funds may require regulatory approval from the Jersey Financial Services Commission where such activity results in the person being a 'distributor' for the purposes of Jersey law. However, a new order under the Financial Services (Jersey) Law 1998 provides an exemption from the requirement to register certain distributors in Jersey.
The Netting Law, which came into effect on August 12 2005, is a short law, expressed in seven articles, which gives statutory confirmation that netting, contractual subordination and non-petition provisions in agreements are enforceable in accordance with their terms before and after bankruptcy. This update summarizes its scope and impact since coming into effect.
The Taxation (Land Transactions) (Jersey) Law 200- was recently adopted by the States of Jersey and will be put into effect following Privy Council approval. The purpose of the law is to introduce a tax on certain types of transaction that confer "rights of occupation of land in Jersey". This tax will be known as the land transactions tax.
In the past year a number of UK multinationals have relocated their headquarters offshore, in most cases to Ireland. All of these recent redomiciliations (also known as migrations or inversions) involved the insertion of a listed Jersey holding company at the head of the relevant group. This update examines the reasons why Jersey has become the jurisdiction of choice.
The key market abuse offences of insider dealing and market manipulation now come under the Financial Services (Jersey) Law 1998. The gateway provisions under the 1998 law afford the Jersey Financial Services Commission greater flexibility in assisting overseas regulatory bodies in their own investigations into suspected insider abuse or market abuse.
The Assembly of the States of Jersey has debated a draft amendment to employment law. The purpose of the amendment is to extend the employment tribunal’s jurisdiction in relation to unfair dismissal claims. The amendment includes provisions on continued employment, re-engagement and re-employment.
A new Financial Services Order has been implemented, the main impact of which is that the pre-existing prohibition on the marketing and solicitation of investment business into Jersey by overseas persons no longer applies, provided that certain requirements are met.
For many years Jersey has been popular for the establishment of structures to hold property, including private property structures and many collective investment schemes established to invest in real estate. From the end of 2003 new UK stamp duty land tax rules led to the Jersey property unit trust becoming widely recognized as the offshore vehicle of choice through which to acquire and hold property in the United Kingdom.
As part of Jersey’s agreement with the European Union in connection with the European Tax Package in 2003, Jersey committed to make changes to its tax regime as of June 3 2008. These changes include the introduction of a general rate of corporate income tax of 0% and the phasing-out of exempt company status.
The Civil Asset Recovery (International Cooperation) (Jersey) Law 2007 represents a major step forward in Jersey’s international cooperation and assistance. Foreign authorities now find it much easier to request and receive assistance from Jersey’s attorney general and the Royal Court in aid of proceedings to recover the probable proceeds of unlawful conduct.
Jersey’s anti-money laundering (AML) and anti-terrorism regime has recently been revised. Throughout 2007, in anticipation of the new risk-based approach, Jersey-based financial institutions have been risk assessing all parts of their businesses and introducing revised AML policies and procedures. This update looks at the changes introduced and the new risk-based approach.