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

Aviation

Aircraft registry established
Jersey | 17 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.

Banking & Financial Services

Enforcement under Security Interests (Jersey) Law 2012
Jersey | 01 December 2020

The Security Interests (Jersey) Law (SIJL) 2012 came into force on 2 January 2014, changing the way in which security is created, perfected and enforced over Jersey intangible movable property. This article deals with the enforcement of security interests under the SIJL 2012.

Jersey listed funds
Jersey | 08 September 2020

The Jersey listed fund regime was introduced for listed closed-ended companies further to the Listed Fund Guide issued by the Jersey Financial Services Commission. The structure, which is modelled on the Jersey expert fund, provides for a fast-track process for the establishment of corporate closed-ended funds that are listed on recognised stock exchanges or markets and regulated pursuant to the Collective Investment Funds (Jersey) Law 1988.

Jersey public investment funds – regulatory options
Jersey | 24 March 2020

Jersey is long established as a primary centre for the establishment of offshore funds and has been at the forefront of international developments, which have attracted international sponsors, promoters, fund managers, advisers and investors. One of the key features of Jersey's fund industry is the flexibility and range of structures and corresponding regulatory and commercial approaches that can be used for funds.

Enforcement of Security Interests (Jersey) Law 2012
Jersey | 17 January 2020

Under the Security Interests (Jersey) Law 1983, the powers of a secured party on enforcement were limited to a power of sale. The Security Interests (Jersey) Law 2012 changed the way in which security is created over intangible movables and introduced a wider range of enforcement powers. This article examines the enforcement of security interests in the event of default.

Virtual currency regulation takes effect
Jersey | 28 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.

Welcome to the virtual currency sandbox: let's play
Jersey | 21 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.

Dormant account law to be introduced
Jersey | 02 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.

Enforcement of pre-2014 Jersey security agreements
Jersey | 30 January 2015

The Security Interests (Jersey) Law 2012 came into force in January 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.

New Security Interests (Jersey) Law: changes to market practice
Jersey | 01 June 2012

The central objective of the new Security Interests (Jersey) Law is to provide Jersey with a simplified, modern, efficient legal regime for the creation, perfection, priority and enforcement of security interests in intangible movable property. Furthermore, the new law is designed to give Jersey one of the most up-to-date legal regimes in this field and thereby to enhance Jersey's attractiveness to local and foreign investors.

Enforcement of Jersey security agreements
Jersey | 18 March 2011

Lenders are increasingly examining the details of their security packages in order to identify the various enforcement options open to them. Where the security package includes a Jersey law security interest agreement in respect of Jersey situs assets, the provisions of the Security Interests (Jersey) Law 1983 must be taken into account.

Statutory netting, contractual subordination and non-petition provisions
Jersey | 16 March 2011

As financing transactions have become more sophisticated over the last decade, it has been common for parties to agree in advance matters relating to netting, contractual subordination and non-petition provisions. The Bankruptcy (Netting, Contractual Subordination and Non-Petition Provisions) (Jersey) Law 2005 ensures certainty to parties entering into such agreements. This update summarises its provisions.

Investment funds and certain capital markets issuers exempt from tax liability
Jersey | 15 February 2011

Jersey has passed an amendment to introduce an explicit statutory exemption from any liability to tax in Jersey for investment funds and certain capital markets issuers. The Income Tax (Amendment No 36) (Jersey) Law 2010 provides clarity in relation to the tax treatment of investment funds, their investment holding companies and certain categories of capital markets issuer in Jersey.

Channel Islands Stock Exchange - debt listing
Jersey | 08 February 2011

The Channel Islands Stock Exchange, LBG offers a fast document turnaround time, competitive pricing, international standards of issuer regulation and a pragmatic approach to disclosure requirements. This update highlights the principal requirements and key issues to be considered when considering the listing of structured debt securities on the exchange.

Court upholds bank's security under security interest agreement
Jersey | 12 November 2010

A recent Royal Court of Jersey judgment gave strong support to the rights and powers of a secured party to take action necessary to protect its security and the value represented by the security, in accordance with the usual provisions of a security agreement. In addition, the court made a number of comments on variation of contract, estoppel and mitigation of loss.

The new Security Interests (Jersey) Law - an overview
Jersey | 05 November 2010

The new Security Interests (Jersey) Law is in close-to-final form. The new law will add certainty and flexibility at a time when economic conditions have led to a greater focus on the protection of collateral. Among other things, it introduces more flexible methods of creation of a security interest and the establishment of a new centrally maintained register of security interests.

The new Security Interests (Jersey) Law - transitional provisions
Jersey | 29 October 2010

The draft Security Interests (Jersey) Law 201 is in close-to-final form and is shortly due to commence its journey through the legislative process. It is anticipated that the new law will come into force in the first half of 2011. This update looks at the transitional provisions that will apply to pre-existing security once the new law comes into force.

Competition & Antitrust

Exclusive supply contracts: when are they anti-competitive?
Jersey | 20 January 2011

Generally, pursuant to Article 8 of the Competition (Jersey) Law 2005, undertakings are prohibited from making arrangements with other undertakings that have the object or effect of hindering to an appreciable extent competition of the supply of goods or services within Jersey. This update deals with the key concepts and obligations that arise in relation to exclusive supply contracts.

Jersey competition law - a brief guide to mergers and acquisitions
Jersey | 13 January 2011

The Competition (Jersey) Law 2005 generally prohibits any agreements, business practices and conduct which substantially lessen competition in Jersey. The Jersey Competition Regulatory Authority is responsible for enforcing the law. This update focuses on Part 4 of the law which regulates certain mergers and acquisitions in Jersey.

Corporate & Commercial

Duties of directors of Jersey companies
Jersey | 07 December 2020

In the current economic environment, directors will be fully focused on avoiding any breach of their fiduciary duties, particularly if they are directors of companies experiencing or at risk of financial distress. This article provides a general overview of the duties of directors of Jersey companies in these circumstances.

Migration of foreign limited partnerships into Jersey
Jersey | 03 August 2020

New regulations permit foreign limited partnerships to migrate (ie, continue) into Jersey using the statutory migration process set out in the Limited Partnerships (Continuance) (Jersey) Regulations. The application process for continuance is straightforward and includes the submission of a declaration signed by the general partner of the foreign limited partnership that the partnership meets the eligibility criteria and an application for a consent in respect of the partnership under the Control of Borrowing (Jersey) Order.

Incorporating a private company
Jersey | 13 July 2020

This article provides useful guidance on incorporating a private company under Jersey law by summarising the main legal requirements and general principles which apply in this regard (eg, company formation, share capital and continuing requirements), as well as the benefits of using a Jersey company.

Migration of companies into and out of Jersey
Jersey | 11 May 2020

The Companies (Jersey) Law 1991 allows a company registered in a foreign jurisdiction to migrate from its home jurisdiction to Jersey provided that the laws of the foreign jurisdiction allow it to do so. In addition, a Jersey company may migrate to a foreign jurisdiction and continue as a foreign incorporated company in that jurisdiction. The procedure to migrate out of Jersey can be more lengthy than that to migrate to Jersey as notice to creditors may be required.

COVID-19 and public company AGMs
Jersey | 20 April 2020

COVID-19 is putting pressure on boards to make quick decisions about upcoming annual general meetings (AGMs) and to communicate with their investors about how best to proceed in such uncertain times. This article discusses how best to manage the upcoming AGM season in light of the government's new restrictive measures and the developing COVID-19 pandemic.

Jersey substance proposals – company perspective
Jersey | 04 March 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.

Jersey limited partnerships
Jersey | 08 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.

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.

Reduction of capital by Jersey companies
Jersey | 27 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.

Directors' exit payments: court clarifies interpretation of articles of association
Jersey | 22 July 2013

The Royal Court recently ruled in a case involving a claim by a former director of two Jersey companies for sums due under service contracts with those companies. In dismissing the defences raised by the companies and ordering that the former director be paid the sums to which he claimed he was due, the court clarified its interpretation of certain provisions of the companies' articles of association.

New law increases flexibility of Jersey limited liability partnerships
Jersey | 18 February 2013

The law on limited liability partnerships (LLPs) in Jersey has recently been amended. Under the previous law, onerous financial requirements had proved an insurmountable barrier to the establishment of LLPs in Jersey. The amendments will enhance the flexibility of Jersey LLPs, encourage their use for investment structuring purposes and enable them to be used as an alternative structure to a UK LLP.

Developments in unfair prejudice law
Jersey | 06 August 2012

The Royal Court recently clarified its approach to applications made under Articles 141 to 143 of the Companies (Jersey) Law 1991. The decision makes clear that if a minority shareholder has grievances that it proposes to advance in litigation, careful thought must be given before choosing which procedural path to take. It also acts as useful guidance as to when the statutory unfair prejudice regime will apply.

Limited partnerships in Jersey
Jersey | 19 December 2011

The Limited Partnerships (Jersey) Law 1994 provides a comprehensive statutory framework for the establishment and operation of limited partnerships. An appropriate structure for a number of different purposes, a limited partnership is often used to provide an additional form of investment vehicle for mutual funds, in particular for the venture capital industry, and is also an attractive structure for various tax-planning purposes.

Innovations in limited partnerships
Jersey | 27 June 2011

Two new types of limited partnership have been introduced in Jersey - the separate limited partnership and the incorporated limited partnership. The new forms differ from a conventional limited partnership in that each has a separate legal personality. The incorporated partnership is further distinguished by being constituted as an independent body corporate and by having perpetual succession.

Corporate Finance/M&A

Jersey – a home for private equity fund managers
Jersey | 06 January 2021

Jersey is witnessing a spike in the inflow of private equity fund managers establishing a physical presence on the island. A number of household name fund managers across all asset classes now call Jersey home, with others in advanced stages of planning to follow them into Jersey. What are the principal drivers of this trend?

Private equity – acquisition structures
Jersey | 11 November 2020

Complex tax, accounting and employment matters are among those which drive the choice of acquisition structure for private equity-funded transactions. Two common types of private equity acquisition transaction are the leveraged buy-out (LBO) and the management buy-out (MBO). Where an LBO or MBO transaction involves a domestic or international business with a UK-domiciled management team, Jersey acquisition structures have gained traction with UK private equity advisers for numerous reasons.

Healthy interest in Jersey private equity
Jersey | 26 August 2020

In a news cycle that can seem relentlessly gloomy, there are some positive stories to be told and the increased activity in private equity is one of them. This article looks beyond the financial services industry at the wider social and economic benefits of this growth. For instance, private equity is becoming increasingly active in the medical and healthcare sector, which, in turn, has led to a large number of private equity investments in areas such as technology, software and data.

Private equity and the response to COVID-19
International | 12 August 2020

It is said that even though some parts of the private equity industry are in need of triage, it can survive the implications of COVID-19 because it has sufficient capital already raised but not deployed – its 'dry powder'. Funds' ongoing investment in their portfolio companies is what generates long-term returns on exit. However, that use of dry powder is not always about the growth of a company – sometimes it is about keeping the company going during tough times.

Jersey private investment funds – regulatory options
Jersey | 25 March 2020

Jersey is long established as a primary centre for the establishment of offshore funds and has been at the forefront of international developments, which have attracted international sponsors, promoters, fund managers, advisers and investors. One of the key features of Jersey's fund industry is the flexibility and range of structures and corresponding regulatory and commercial approaches that can be used for funds.

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.

M&A bond financing: offshore high-yield and convertible bond issuance
Jersey | 03 July 2013

The first half of 2013 has seen private equity sponsors and corporate borrowers continue to look to the corporate bond and debt capital markets for M&A and joint venture project activity as an alternate source of funding to bank lending. As a less expensive form of financing, M&A and other event-driven corporate debt issuance in Jersey offers real opportunities for strategic M&A in the current market.

Jersey joint venture vehicles: an alternative structure
Jersey | 19 September 2012

While the M&A pipeline remains relatively strong, bringing deals to completion is proving challenging due to the tightening of available credit and uncertainty with asset valuations. A Jersey joint venture vehicle is a form of alternative structure by which companies can gain access to deals that might not be available through traditional mergers and acquisitions, and which can be used as a precursor to traditional M&A activity in future.

Acquisition structures of leveraged and management buy-outs
Jersey | 29 August 2012

Some of the most common types of private equity acquisition transaction are leveraged buy-outs (LBOs) and management buy-outs (MBOs). Jersey companies, Jersey employee benefit trusts and Eurobonds quoted on the Channel Islands Stock Exchange have become integral components of the LBO and MBO transaction planning process.

New regulations aim to clarify and simplify merger procedures
Jersey | 15 June 2011

The Companies (Jersey) Law 1991 has recently been amended by the Companies (Amendment 5) (Jersey) Regulations 2011. The new law aims to clarify and simplify certain merger procedures and enable Jersey incorporated companies to merge directly with a wider range of corporate bodies, including companies incorporated elsewhere.

Corporate Tax

Mandatory disclosure rules
Jersey | 05 March 2021

The Taxation (Implementation) (International Tax Compliance) (Mandatory Disclosure Rules for CRS Avoidance Arrangements and Opaque Offshore Structures) (Jersey) Regulations 2020 are expected to come into force shortly. The regulations will primarily affect promoters and service providers of certain arrangements, implementing a 30-day window to report disclosable arrangements to the Comptroller of Revenue. Failure to comply may lead to financial penalties and, in some instances, criminal penalties.

Impact of COVID-19 pandemic on fund manager substance arrangements
Jersey | 19 February 2021

In 2020 the comptroller of revenue issued practical guidance which stated that where a company had to alter its operating practices to compensate for the COVID-19 outbreak, the comptroller would not determine that such company had failed the economic substance test under the Taxation (Companies – Economic Substance) (Jersey) Law 2019. As such, fund managers have had to make a number of adjustments to ordinary business practices in line with this guidance.

Economic substance: clarification of COVID-19 concession
Jersey | 12 February 2021

In March 2020 the Comptroller of Revenue released a concession confirming that where companies had to alter their operating practices to compensate for the COVID-19 outbreak, the comptroller would not determine that such company had failed the economic substance test under Article 6 of the Taxation (Companies – Economic Substance) (Jersey) Law 2019. Given that the pandemic remains ongoing, the comptroller recently issued further guidance in relation to the concession.

Employment & Immigration

Proposed annual leave increase and daily rest breaks for employees
Jersey | 28 April 2021

From January 2022, additional employment rights are expected to be introduced for employees in Jersey. The proposals would require employers to provide at least three weeks' paid annual leave and a 15-minute rest break in any work period of six hours or more. Jersey's Employment Forum presented a report to the social security minister following public consultation in late 2019 and early 2020, which made a number of recommendations.

First COVID-19-related employment tribunal judgment
Jersey | 20 January 2021

A recent Jersey Employment and Discrimination Tribunal judgment is believed to be the first employment decision relating to the restrictions imposed on businesses due to COVID-19. Although the claimant was unsuccessful in his claim, the tribunal chair expressed sympathy, saying that he was the victim of an unreasonable and unsustainable interpretation by the respondent of a clear and plain term in the government's COVID-19 payroll co-funding scheme.

COVID-19: government financial support for employers
Jersey | 08 July 2020

This article outlines the financial support available to employers in Jersey that have been adversely affected by measures introduced to manage the spread of COVID-19. Such support includes the payroll co-funding scheme and the deferral of social security contributions.

COVID-19: considerations for employers in Channel Islands
International | 25 March 2020

Although there is a host of good coronavirus (COVID-19) advice available on hygiene practices and travelling to affected areas, there are some issues which employers might not have considered. This article examines key considerations for employers in the Channel Islands with regard to the COVID-19 pandemic, including as regards sick pay and procedures, data protection and employees who are unable to work.

Disability to be a protected characteristic under Jersey discrimination law
Jersey | 23 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.

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.

£10,000 compensation cap applies per complaint, not per overall claim
Jersey | 26 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).

Family-friendly rights and sex discrimination
Jersey | 16 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.

Latest legislative and case law developments
Jersey | 24 September 2014

The States of Jersey has approved statutory family-friendly rights, including maternity leave, paternity leave and the right to request flexible working. In addition, it is now illegal to discriminate against a person on the grounds of race. Employers must update their policies and procedures accordingly.

New redundancy legislation - traps for the unwary
Jersey | 23 February 2011

Amendments to the Employment (Jersey) Law 2003 creating rights on redundancy recently took effect. The new provisions mean that for the first time in Jersey there will be statutory redundancy payments for employees that are similar to those operating in the United Kingdom. This legislative change introduces a degree of complexity for employers which will require careful handling.

Environment & Climate Change

The role of legislation in environmental protection and the Jersey legal framework
Jersey | 10 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.

The CRC scheme: potential impact on Jersey trustees
Jersey | 16 August 2010

The Carbon Reduction Commitment Energy Efficiency Scheme (CRC scheme) is a new mandatory climate change and energy-saving scheme aimed at improving energy efficiency and cutting carbon dioxide emissions in the United Kingdom. At present, a particular interest surrounds the impact of the CRC scheme on Jersey trusts where the trustees hold UK property directly.

Insolvency & Restructuring

Snapshot: debt for equity swaps
Jersey | 30 April 2021

Jersey continues to be the offshore jurisdiction of choice for restructurings involving debt for equity swaps (particularly restructurings of UK and international corporate groups). But what makes Jersey so attractive for this type of transaction? This article looks at the benefits of using a Jersey company and key initial issues which must be considered in this respect.

Jersey corporate insolvency procedures
Jersey | 11 December 2020

The financial impact of the COVID-19 pandemic has put pressure on a wide range of structures and, as a result, lenders, borrowers and other counterparties are looking more closely at the impact of possible insolvency proceedings. As Jersey entities are often used in cross-border finance transactions, it is important to be aware of the differences between Jersey and English insolvency procedures for companies, trusts and limited partnerships.

Recognition of UK insolvency practitioners in Jersey
Jersey | 11 September 2020

In the current COVID-19 environment, more businesses will likely become insolvent, some of which will have an interest in Jersey property. Insolvency practitioners appointed outside Jersey in respect of an overseas person or company (or Jersey company subject to English insolvency proceedings) must be recognised in Jersey before they can deal with certain forms of Jersey property. This is because Jersey immoveable property can be transacted only by passing a contract before the Royal Court.

COVID-19: restructuring and corporate recovery measures
Jersey | 05 June 2020

Most employees in the Jersey financial services industry are working from home and there has been no interruption to business continuity for the sector due to the COVID-19 crisis. Further, the Jersey Financial Services Commission has confirmed that while its physical premises are closed, a flexible business continuity strategy is being implemented. This article sets out potential insolvency reforms which may be implemented in the financial services sector with respect to local, regulated and international business.

2020 heralds insolvency law changes
Guernsey | 07 February 2020

The States of Guernsey recently passed the Companies (Guernsey) Law 2008 (Insolvency) (Amendment) Ordinance 2020, making Guernsey an even more desirable forum for insolvency proceedings. The changes show that Guernsey is prepared to arm insolvency office holders with the necessary tools and powers to tackle, draw in and preserve the assets of an insolvent company for the benefit of creditors.

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.

Reinstatement of a company
Jersey | 03 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.

Practice and trends in restructuring and insolvency law
Jersey | 26 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.

Updated insolvency procedures for Jersey companies
Jersey | 23 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.

Recognition of insolvency practitioners in Jersey
Jersey | 19 April 2013

At the end of a financial year, there is likely to be an increase in the number of businesses becoming insolvent, some of which may have an interest in Jersey property. Insolvency practitioners appointed outside Jersey in respect of an overseas person or company must be recognised in Jersey before they can deal with certain forms of Jersey property, as Jersey immovable property can be transacted only before the Royal Court.

Preserving parity between creditors
Jersey | 01 February 2013

The ability of the court to ensure that similarly ranked creditors of a debtor are treated equally before the commencement of any insolvency procedure, including a just and equitable winding-up application, was recently considered by the Royal Court. Following this ruling, the indications are that the court will consider making use of its inherent jurisdiction to ensure parity between creditors even where no statutory protection exists.

Insolvency procedures for Jersey companies
Jersey | 10 June 2011

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

Litigation

Trust company's £550,000 fine demonstrates importance of effective and consistent AML procedures
Jersey | 20 April 2021

The Royal Court recently imposed a hefty £550,000 fine on a firm for failing to ensure that, in practice, its anti-money laundering (AML) policies and procedures were being applied effectively and consistently. Notably, the Royal Court was not deterred from imposing a fine by the fact that the failings related to only one client structure. Firms must therefore ensure that their AML controls are being applied effectively across their entire business – for, as this judgment shows, the cost of failing to do so can be high.

Royal Court intervenes to set aside trustee decision
Jersey | 13 April 2021

In a recent case, the Royal Court intervened to set aside a decision of the trustee not to make the spouse of the settlor a beneficiary in her own right. The court's decision has implications for trustees and their obligation to act reasonably despite the trustee setting out reasons for its original decision.

Royal Court demonstrates its ability to assist in administration of foreign trusts
Jersey | 27 October 2020

In a recent decision, the Royal Court considered – for the first time – whether it can exercise a foreign statutory power on the application of a trustee of a foreign trust. The court concluded that it can do so as a matter of principle and went on to exercise an English statutory power so as to permit the trustees of a trust governed by English law to self-deal. The judgment is a welcome one for trustees in two particular respects.

Rusnano Capital AG decision
Guernsey | 31 March 2020

In a recent case, the Guernsey Court of Appeal upheld the deputy bailiff's interpretation of Section 53(3) of the Trusts (Guernsey) Law 2007 that a sole beneficiary can use that section of the law to terminate a discretionary trust even if the trust instrument contains a power to add further beneficiaries.

Slowly getting to grips with unjust enrichment and Jersey's legal 'hot potatoes'
Jersey | 14 January 2020

A long-running Jersey fraud case illustrates the difficult task that the Channel Island courts sometimes have in comparing and distinguishing between developed principles of English law and foundational elements of the islands' customary law. The case tackles two Jersey law 'hot potatoes': the question of the rights between wrongdoers to claim an indemnity or contribution outside the scope of the limited statutory scheme between joint tortfeasors and the extent and nature of the doctrine of unjust enrichment under Jersey law.

Z Trusts judgment: whose rights take priority when a trust is insolvent?
Jersey | 13 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 | 06 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.

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.

Royal Court reconsiders application of Hastings-Bass principle in Jersey
Jersey | 26 November 2013

Following the English Supreme Court decisions in Pitt v Holt and Futter v Futter, the Jersey Royal Court has recently reconsidered the application of the Hastings-Bass principle. The principle concerns decisions of trustees where they have failed to take into account relevant considerations or have taken into account considerations that they should not have.

Court finds respondent's refusal to disclose information "wholly without merit"
Jersey | 01 October 2013

The Royal Court recently considered the issues stemming from the provision of information by a trustee to a beneficiary. The representor sought representation before the court in order to obtain information on the assets contained in certain trusts – not only as a beneficiary seeking to hold her trustee to account, but also in order to make her Australian tax returns and avoid being in breach of Australian law.

Court approves beneficiaries' application for Beddoe relief
Jersey | 27 November 2012

In a recent case an application for Beddoe relief was made to the Royal Court of Jersey by beneficiaries of a trust. The court concluded there was no reason why its inherent supervisory jurisdiction should not extend to making a Beddoe order in favour of discretionary beneficiaries, provided that certain conditions were met. The case could increase the ability of beneficiaries to hold trustees to account for wrongdoing.

Where there's a will, there's an executor (or five)
Jersey | 24 July 2012

The Royal Court recently delivered a judgment concerning the principles to be applied where a body of executors is deadlocked. In reaching its decision, it had to determine the role of the court, the circumstances in which the court could intervene and the basis on which it could do so. The decision clarifies the court's jurisdiction to intervene where there is disagreement between a body of executors or trustees.

Court considers issue of situs of intangible assets
Jersey | 05 April 2011

A recent case considered the issue of the situs of a debt. The court accepted that what may or may not constitute 'residence' for tax purposes is irrelevant for present purposes, and that what matters is where a corporation carries on business. This case is useful for international companies that retain their registered office in one jurisdiction and carry out their business activities in alternative jurisdictions.

'Forum for administration' and 'exclusive jurisdiction' clauses in trusts context
Jersey | 08 March 2011

A recent judgment of Commissioner Clyde-Smith with Jurats Liddiard and Nicolle set aside a service of proceedings on respondents outside of Jersey and stayed the proceedings. The importance of the judgment is the court's consideration of the 'forum for administration' and 'exclusive jurisdiction' clauses in the context of trusts.

Private Client & Offshore Services

Royal Court blesses momentous decision of representative of minor and unborn beneficiaries
Jersey | 06 May 2021

The Royal Court recently considered for the first time the blessing of a momentous decision of a court-appointed representative of minor and unborn beneficiaries of a trust to enter into a settlement agreement in respect of claims against the trust. While the decision to bless the decision of the representative of the minor and unborn beneficiaries was confined to the unusual facts of this case, this decision nonetheless establishes the circumstances (albeit limited) in which the court will bless such a decision.

Snapshot: debt for equity swaps
Jersey | 29 April 2021

Jersey continues to be the offshore jurisdiction of choice for restructurings involving debt for equity swaps (particularly restructurings of UK and international corporate groups). But what makes Jersey so attractive for this type of transaction? This article looks at the benefits of using a Jersey company and key initial issues which must be considered in this respect.

Proposed annual leave increase and daily rest breaks for employees
Jersey | 22 April 2021

From January 2022, additional employment rights are expected to be introduced for employees in Jersey. The proposals would require employers to provide at least three weeks' paid annual leave and a 15-minute rest break in any work period of six hours or more. Jersey's Employment Forum presented a report to the social security minister following public consultation in late 2019 and early 2020, which made a number of recommendations.

Trust company's £550,000 fine demonstrates importance of effective and consistent AML procedures
Jersey | 15 April 2021

The Royal Court recently imposed a hefty £550,000 fine on a firm for failing to ensure that, in practice, its anti-money laundering (AML) policies and procedures were being applied effectively and consistently. Notably, the Royal Court was not deterred from imposing a fine by the fact that the failings related to only one client structure. Firms must therefore ensure that their AML controls are being applied effectively across their entire business – for, as this judgment shows, the cost of failing to do so can be high.

Royal Court intervenes to set aside trustee decision
Jersey | 08 April 2021

In a recent case, the Royal Court intervened to set aside a decision of the trustee not to make the spouse of the settlor a beneficiary in her own right. The court's decision has implications for trustees and their obligation to act reasonably despite the trustee setting out reasons for its original decision.

Wills and probate law and COVID-19: current state of play
Jersey | 25 March 2021

Despite the various challenges arising from COVID-19 restrictions, individuals and businesses have shown resilience and an ability to swiftly adapt in order to make the most of the new reality – and Jersey has been no different. In particular, the States of Jersey were among the first in the world to introduce new wills and probate legislation as a direct result of the impact of the pandemic.

Mandatory disclosure rules
Jersey | 04 March 2021

The Taxation (Implementation) (International Tax Compliance) (Mandatory Disclosure Rules for CRS Avoidance Arrangements and Opaque Offshore Structures) (Jersey) Regulations 2020 are expected to come into force shortly. The regulations will primarily affect promoters and service providers of certain arrangements, implementing a 30-day window to report disclosable arrangements to the Comptroller of Revenue. Failure to comply may lead to financial penalties and, in some instances, criminal penalties.

Registering a foreign power of attorney
Jersey | 25 February 2021

If a person holds assets in Jersey, they may wish to appoint someone who can manage those assets in the event that they should lose capacity to such an extent that they can no longer do this themselves. At present, there is no facility for such individual to put a local Jersey lasting power of attorney in place to cover their Jersey-based assets. Instead, the Royal Court will recognise the foreign power of attorney, provided that power of attorney is registered with the court.

Impact of COVID-19 pandemic on fund manager substance arrangements
Jersey | 18 February 2021

In 2020 the comptroller of revenue issued practical guidance which stated that where a company had to alter its operating practices to compensate for the COVID-19 outbreak, the comptroller would not determine that such company had failed the economic substance test under the Taxation (Companies – Economic Substance) (Jersey) Law 2019. As such, fund managers have had to make a number of adjustments to ordinary business practices in line with this guidance.

Economic substance: clarification of COVID-19 concession
Jersey | 11 February 2021

In March 2020 the Comptroller of Revenue released a concession confirming that where companies had to alter their operating practices to compensate for the COVID-19 outbreak, the comptroller would not determine that such company had failed the economic substance test under Article 6 of the Taxation (Companies – Economic Substance) (Jersey) Law 2019. Given that the pandemic remains ongoing, the comptroller recently issued further guidance in relation to the concession.

In force: Financial Services (Disclosure and Provision of Information) (Jersey) Law, Order and Regulations
Jersey | 04 February 2021

The Financial Services (Disclosure and Provision of Information) (Jersey) Law 2020 recently came into effect, introducing a revised statutory framework for reporting information on beneficial owners and controllers. This article provides an overview of the secondary legislation introduced under the law – namely, the Financial Services (Disclosure and Provision of Information) (Jersey) Order and the Financial Services (Disclosure and Provision of Information) (Jersey) Regulations – and the filing deadlines.

An ideal location in uncertain times for family offices
Jersey | 21 January 2021

The COVID-19 pandemic has raised immediate issues for many wealthy families, notably around tax residency and immigration, but on the flip side it has given wealthy families the opportunity to take stock and consider how they want to be structured and, fundamentally, where they want their family office to be located. This article considers the features which make Jersey attractive for family offices.

First COVID-19-related employment tribunal judgment
Jersey | 14 January 2021

A recent Jersey Employment and Discrimination Tribunal judgment is believed to be the first employment decision relating to the restrictions imposed on businesses due to COVID-19. Although the claimant was unsuccessful in his claim, the tribunal chair expressed sympathy, saying that he was the victim of an unreasonable and unsustainable interpretation by the respondent of a clear and plain term in the government's COVID-19 payroll co-funding scheme.

Jersey – a home for private equity fund managers
Jersey | 24 December 2020

Jersey is witnessing a spike in the inflow of private equity fund managers establishing a physical presence on the island. A number of household name fund managers across all asset classes now call Jersey home, with others in advanced stages of planning to follow them into Jersey. What are the principal drivers of this trend?

Disability discrimination: considerations for workplaces, landlords and tenants
Jersey | 17 December 2020

Following an amendment to the Discrimination (Jersey) Law 2013 which recently came into force, Jersey's discrimination legislation has been extended so that businesses, service providers and those managing and letting premises must take reasonable steps to avoid disadvantaging people with disabilities in relation to the accessibility of their premises. Avoiding indirect discrimination involves anticipating, and not just reacting to, disadvantages that may be caused to disabled persons.

Jersey corporate insolvency procedures
Jersey | 10 December 2020

The financial impact of the COVID-19 pandemic has put pressure on a wide range of structures and, as a result, lenders, borrowers and other counterparties are looking more closely at the impact of possible insolvency proceedings. As Jersey entities are often used in cross-border finance transactions, it is important to be aware of the differences between Jersey and English insolvency procedures for companies, trusts and limited partnerships.

Duties of directors of Jersey companies
Jersey | 03 December 2020

In the current economic environment, directors will be fully focused on avoiding any breach of their fiduciary duties, particularly if they are directors of companies experiencing or at risk of financial distress. This article provides a general overview of the duties of directors of Jersey companies in these circumstances.

Enforcement under Security Interests (Jersey) Law 2012
Jersey | 26 November 2020

The Security Interests (Jersey) Law (SIJL) 2012 came into force on 2 January 2014, changing the way in which security is created, perfected and enforced over Jersey intangible movable property. This article deals with the enforcement of security interests under the SIJL 2012.

Lockdown fails to dampen buoyant property market
Jersey | 19 November 2020

The start of lockdown initiated a significant slowdown in the property market in early Spring 2020. Reassuringly, as Jersey came out of lockdown, there was an exponential increase in property transactions, which peaked in August 2020. If the rapid resurgence of the market seen in the summer is anything to go by, any reduction in transactions over the winter months which is beyond the seasonal norm may lead to a similar increase in activity and competition next spring.

COVID-19 and residential tenancies: where are we now?
Jersey | 12 November 2020

The States of Jersey enacted the COVID-19 (Residential Tenancy) (Temporary Amendment of Law) (Jersey) Regulations 2020 in an attempt to address the impact of the COVID-19 outbreak. The regulations temporarily amended certain provisions of the Residential Tenancy (Jersey) Law 2011, applying to all residential tenancies with effect from 10 April 2020, and remained in force until 30 September 2020. As of this date, landlords and tenants must manage leases in the normal way under the law.

Private equity – acquisition structures
Jersey | 05 November 2020

Complex tax, accounting and employment matters are among those which drive the choice of acquisition structure for private equity-funded transactions. Two common types of private equity acquisition transaction are the leveraged buy-out (LBO) and the management buy-out (MBO). Where an LBO or MBO transaction involves a domestic or international business with a UK-domiciled management team, Jersey acquisition structures have gained traction with UK private equity advisers for numerous reasons.

Financial Services (Disclosure and Provision of Information) (Jersey) Law 202-
Jersey | 29 October 2020

This article looks at the government's introduction of new legislation in relation to beneficial ownership and controlling interests requirements. This new legislation, the Financial Services (Disclosure and Provision of Information) (Jersey) Law 202-, aims to implement in Jersey the requirements set out by the Financial Action Task Force, the intergovernmental body that sets standards for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.

Royal Court demonstrates its ability to assist in administration of foreign trusts
Jersey | 22 October 2020

In a recent decision, the Royal Court considered – for the first time – whether it can exercise a foreign statutory power on the application of a trustee of a foreign trust. The court concluded that it can do so as a matter of principle and went on to exercise an English statutory power so as to permit the trustees of a trust governed by English law to self-deal. The judgment is a welcome one for trustees in two particular respects.

Open dialogue needed to avoid COVID-19 construction disputes
Jersey | 15 October 2020

The potential for disputes in construction projects has risen sharply with the performance and enforcement of contracts directly affected by COVID-19. An open and frank dialogue early on between the parties steered as a form of informal mediation or collaboration can quickly put an end to frustrations and disputes and lead the way for a successful, more cost-effective solution to any dispute that may arise.

Accessible premises and disability discrimination
Jersey | 08 October 2020

Jersey's discrimination legislation was recently extended so that businesses, service providers and those managing and letting premises must take reasonable steps to avoid disadvantaging people with disabilities in relation to the accessibility of their premises. This law change is for the benefit of employees, customers, clients and tenants, but it also means that businesses and premises will be more accessible to the thousands of people in Jersey who have a disability.

Should trustees be worried about global warming?
Jersey | 01 October 2020

Climate change will no doubt continue to be a worldwide concern and will affect everyone. As a forward-thinking jurisdiction, Jersey has been active in sustainable finance for some time. Being a jurisdiction with a wide range of flexible structures and with the knowledge, expertise and international relationships to support them, Jersey is well placed to ensure that settlors and trustees make the right choice to suit an investment outlook bound by climate risk concerns.

Jersey expert funds
Jersey | 24 September 2020

Jersey expert funds were introduced to enhance Jersey's attractiveness as a jurisdiction for the establishment of funds aimed at institutional and high-net-worth investors. Expert funds can be established within a matter of days on the basis of a self-certification approach without any formal regulatory review of the fund or its promoter. There are currently more than 400 authorised expert funds.

Recognition of UK insolvency practitioners in Jersey
Jersey | 10 September 2020

In the current COVID-19 environment, more businesses will likely become insolvent, some of which will have an interest in Jersey property. Insolvency practitioners appointed outside Jersey in respect of an overseas person or company (or Jersey company subject to English insolvency proceedings) must be recognised in Jersey before they can deal with certain forms of Jersey property. This is because Jersey immoveable property can be transacted only by passing a contract before the Royal Court.

Jersey listed funds
Jersey | 03 September 2020

The Jersey listed fund regime was introduced for listed closed-ended companies further to the Listed Fund Guide issued by the Jersey Financial Services Commission. The structure, which is modelled on the Jersey expert fund, provides for a fast-track process for the establishment of corporate closed-ended funds that are listed on recognised stock exchanges or markets and regulated pursuant to the Collective Investment Funds (Jersey) Law 1988.

Healthy interest in Jersey private equity
Jersey | 20 August 2020

In a news cycle that can seem relentlessly gloomy, there are some positive stories to be told and the increased activity in private equity is one of them. This article looks beyond the financial services industry at the wider social and economic benefits of this growth. For instance, private equity is becoming increasingly active in the medical and healthcare sector, which, in turn, has led to a large number of private equity investments in areas such as technology, software and data.

Migration of foreign limited partnerships into Jersey
Jersey | 30 July 2020

New regulations permit foreign limited partnerships to migrate (ie, continue) into Jersey using the statutory migration process set out in the Limited Partnerships (Continuance) (Jersey) Regulations. The application process for continuance is straightforward and includes the submission of a declaration signed by the general partner of the foreign limited partnership that the partnership meets the eligibility criteria and an application for a consent in respect of the partnership under the Control of Borrowing (Jersey) Order.

Testing times for data privacy
Jersey | 23 July 2020

Data privacy has been high on the 2020 agenda. Its relevance in the context of the COVID-19 pandemic is undoubtedly the bulky portion of an iceberg that skulks beneath troubled socioeconomic waters. With life having changed dramatically, this article reflects on how data issues have been brought to the fore as part of the response to COVID-19.

Intermeddling offence: revised guidelines issued
Jersey | 16 July 2020

In Jersey, it is a criminal offence to take possession or in any way administer the movable estate of a deceased person before a grant of probate has been obtained (the intermeddling offence). Her Majesty's attorney general is responsible for deciding whether to commence criminal proceedings in Jersey, including for the intermeddling offence. The need to comply with Jersey's probate requirements was underscored by the recent conviction of two financial services firms for intermeddling.

Incorporating a private company
Jersey | 09 July 2020

This article provides useful guidance on incorporating a private company under Jersey law by summarising the main legal requirements and general principles which apply in this regard (eg, company formation, share capital and continuing requirements), as well as the benefits of using a Jersey company.

COVID-19: government financial support for businesses
Jersey | 02 July 2020

This article outlines the financial support available to businesses in Jersey that have been adversely affected by measures introduced to manage the spread of COVID-19. Such support includes the payroll co-funding scheme, the business disruption loan guarantee scheme, the COVID-19 Special Situations Fund, the deferral of social security contributions and goods and services tax payments, government rent deferrals and renegotiations and measures regarding income tax debts.

How lasting powers of attorney can help you during COVID-19
Jersey | 18 June 2020

Lasting powers of attorney enable a person to appoint someone else to make decisions on their behalf in respect of their property and affairs and health and welfare. This is especially useful during the COVID-19 pandemic for people who are considered high risk and are unable to leave their homes or those who are self-isolating.

COVID-19: temporary arrangements between landlords and tenants in respect of commercial leases
Jersey | 11 June 2020

Due to the COVID-19 pandemic, the Jersey courts are prioritising certain cases and are unlikely to deal with property-related matters. As such, the government recently issued commercial property guidance to encourage landlords and tenants to negotiate temporary compromises with regard to lease obligations in a reasonable manner if either party experiences financial difficulties arising from the pandemic.

COVID-19: restructuring and corporate recovery measures
Jersey | 04 June 2020

Most employees in the Jersey financial services industry are working from home and there has been no interruption to business continuity for the sector due to the COVID-19 crisis. Further, the Jersey Financial Services Commission has confirmed that while its physical premises are closed, a flexible business continuity strategy is being implemented. This article sets out potential insolvency reforms which may be implemented in the financial services sector with respect to local, regulated and international business.

COVID-19: implications for planning appeals
Jersey | 28 May 2020

The Law Society of Jersey issued guidance regarding the courts' COVID-19 contingency plans, noting that planning appeal hearings have been suspended due to independent inspectors being unable to travel to the island. New appeals will continue to be processed without the final hearing dates being fixed at this stage. Therefore, parties that wish to appeal a planning decision must meet the usual timeframes.

Migration of companies into and out of Jersey
Jersey | 07 May 2020

The Companies (Jersey) Law 1991 allows a company registered in a foreign jurisdiction to migrate from its home jurisdiction to Jersey provided that the laws of the foreign jurisdiction allow it to do so. In addition, a Jersey company may migrate to a foreign jurisdiction and continue as a foreign incorporated company in that jurisdiction. The procedure to migrate out of Jersey can be more lengthy than that to migrate to Jersey as notice to creditors may be required.

COVID-19 and public company AGMs
Jersey | 16 April 2020

COVID-19 is putting pressure on boards to make quick decisions about upcoming annual general meetings (AGMs) and to communicate with their investors about how best to proceed in such uncertain times. This article discusses how best to manage the upcoming AGM season in light of the government's new restrictive measures and the developing COVID-19 pandemic.

Rise of will disputes in Jersey
Jersey | 02 April 2020

Recent research highlights the increasing likelihood of people being willing to dispute a will and go to court if they are unhappy with the division of their relative's estate, and this is definitely an increasing area of work in Jersey. This article answers some pertinent questions concerning wills.

Ethical investment and challenges for trustees
International | 02 April 2020

Impact investing, ethical investing and climate change concerns are increasingly discussed when considering investments and are now affecting trustee decision making. Trustees have a duty to act prudently, with appropriate skill and care and in the interests of beneficiaries when considering their investments. They must ensure that they are not influenced by their own moral considerations – but how should they deal with those of their beneficiaries?

Five steps to avoid insider fraud
Jersey | 26 March 2020

Insider fraud is a problem that persists at all levels of society, irrespective of whether the entity has commercial or altruistic motives. This begs the question of what internal controls and procedures employers in any sector can implement to reduce the risk of insider fraud. This article outlines five steps which could significantly reduce the risk for businesses of any size or type.

Jersey investment funds – regulatory options
Jersey | 19 March 2020

Jersey is long established as a primary centre for the establishment of offshore funds and has been at the forefront of international developments, which have attracted international sponsors, promoters, fund managers, advisers and investors. One of the key features of Jersey's fund industry is the flexibility and range of structures and corresponding regulatory and commercial approaches that can be used for funds.

COVID-19: considerations for employers in Channel Islands
International | 19 March 2020

Although there is a host of good coronavirus (COVID-19) advice available on hygiene practices and travelling to affected areas, there are some issues which employers might not have considered. This article examines key considerations for employers in the Channel Islands with regard to the COVID-19 pandemic, including as regards sick pay and procedures, data protection and employees who are unable to work.

Jersey Royal Court declares trustee's exercise of power void
Jersey | 30 January 2020

The Royal Court recently declared void certain actions of a trustee by which the assets of two Jersey law trusts had been transferred into a circular ownerless corporate structure, terminating the trusts. This case highlights the need for trustees to obtain detailed legal and tax advice when considering a restructuring of assets held in trust and is a helpful reminder that a trustee's duty to account is at the heart of the trustee-beneficiary relationship.

Enforcement of Security Interests (Jersey) Law 2012
Jersey | 16 January 2020

Under the Security Interests (Jersey) Law 1983, the powers of a secured party on enforcement were limited to a power of sale. The Security Interests (Jersey) Law 2012 changed the way in which security is created over intangible movables and introduced a wider range of enforcement powers. This article examines the enforcement of security interests in the event of default.

Slowly getting to grips with unjust enrichment and Jersey's legal 'hot potatoes'
Jersey | 09 January 2020

A long-running Jersey fraud case illustrates the difficult task that the Channel Island courts sometimes have in comparing and distinguishing between developed principles of English law and foundational elements of the islands' customary law. The case tackles two Jersey law 'hot potatoes': the question of the rights between wrongdoers to claim an indemnity or contribution outside the scope of the limited statutory scheme between joint tortfeasors and the extent and nature of the doctrine of unjust enrichment under Jersey law.

Family offices and Jersey's economic substance rules
Jersey | 05 December 2019

The Taxation (Companies – Economic Substance) (Jersey) Law 2019 came into effect in January 2019 and applies to certain Jersey tax-resident companies which conduct one or more relevant activities. Family office structures which include Jersey tax-resident companies must consider whether those companies fall within the scope of the law. If they do, they must satisfy the three-stage test set out in the law or face a number of progressively punitive penalties.

Family matters: why the world's wealthiest are setting up family offices in Jersey
Jersey | 07 November 2019

Wealth is increasing exponentially among some of the world's richest families to the extent that, for many of these families, it makes commercial sense to set up their own bespoke family office to look after their key operations – and they are increasingly looking to Jersey as the place to do it. There are a range of factors as to why Jersey is becoming a jurisdiction of choice for families across the world looking to set up such an operation, including global economic shifts and Jersey's expertise and personnel.

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 – 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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 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.

Projects, Construction & Infrastructure

Open dialogue needed to avoid COVID-19 construction disputes
Jersey | 19 October 2020

The potential for disputes in construction projects has risen sharply with the performance and enforcement of contracts directly affected by COVID-19. An open and frank dialogue early on between the parties steered as a form of informal mediation or collaboration can quickly put an end to frustrations and disputes and lead the way for a successful, more cost-effective solution to any dispute that may arise.

Real Estate

Disability discrimination: considerations for workplaces, landlords and tenants
Jersey | 18 December 2020

Following an amendment to the Discrimination (Jersey) Law 2013 which recently came into force, Jersey's discrimination legislation has been extended so that businesses, service providers and those managing and letting premises must take reasonable steps to avoid disadvantaging people with disabilities in relation to the accessibility of their premises. Avoiding indirect discrimination involves anticipating, and not just reacting to, disadvantages that may be caused to disabled persons.

Lockdown fails to dampen buoyant property market
Jersey | 20 November 2020

The start of lockdown initiated a significant slowdown in the property market in early Spring 2020. Reassuringly, as Jersey came out of lockdown, there was an exponential increase in property transactions, which peaked in August 2020. If the rapid resurgence of the market seen in the summer is anything to go by, any reduction in transactions over the winter months which is beyond the seasonal norm may lead to a similar increase in activity and competition next spring.

COVID-19 and residential tenancies: where are we now?
Jersey | 13 November 2020

The States of Jersey enacted the COVID-19 (Residential Tenancy) (Temporary Amendment of Law) (Jersey) Regulations 2020 in an attempt to address the impact of the COVID-19 outbreak. The regulations temporarily amended certain provisions of the Residential Tenancy (Jersey) Law 2011, applying to all residential tenancies with effect from 10 April 2020, and remained in force until 30 September 2020. As of this date, landlords and tenants must manage leases in the normal way under the law.

COVID-19: temporary arrangements between landlords and tenants in respect of commercial leases
Jersey | 12 June 2020

Due to the COVID-19 pandemic, the Jersey courts are prioritising certain cases and are unlikely to deal with property-related matters. As such, the government recently issued commercial property guidance to encourage landlords and tenants to negotiate temporary compromises with regard to lease obligations in a reasonable manner if either party experiences financial difficulties arising from the pandemic.

COVID-19: implications for planning appeals
Jersey | 29 May 2020

The Law Society of Jersey issued guidance regarding the courts' COVID-19 contingency plans, noting that planning appeal hearings have been suspended due to independent inspectors being unable to travel to the island. New appeals will continue to be processed without the final hearing dates being fixed at this stage. Therefore, parties that wish to appeal a planning decision must meet the usual timeframes.

A guide to Jersey property unit trusts
Jersey | 28 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 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.

Preserving rental income streams: the end of grandfathering provisions
Jersey | 03 February 2012

Under the Goods and Services Tax (Jersey) Law 2007, a landlord of commercial property in Jersey may be liable to account to the States of Jersey for 5% of its rental income. Commercial leases entered into before the law was published have been grandfathered, but this five-year exemption on goods and services tax liability ends later this year. All commercial leases will then potentially become taxable supplies.

Developing land in Jersey: issues for the unwary
Jersey | 27 January 2012

In the current economic climate, margins have reduced considerably for all businesses - those developing property, whether for residential or commercial use, are no exception. Jersey is rightly renowned for its beautiful natural environment, but this in turn means that anyone seeking permission to build can face particular hurdles, depending on the nature and location of the land in question.

Tech, Data, Telecoms & Media

Testing times for data privacy
Jersey | 24 July 2020

Data privacy has been high on the 2020 agenda. Its relevance in the context of the COVID-19 pandemic is undoubtedly the bulky portion of an iceberg that skulks beneath troubled socioeconomic waters. With life having changed dramatically, this article reflects on how data issues have been brought to the fore as part of the response to COVID-19.

General Data Protection Regulation in Jersey: what is it, why should I care and what should I do about it?
Jersey | 04 April 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.

White Collar Crime

Trust company's £550,000 fine demonstrates importance of effective and consistent AML procedures
Jersey | 19 April 2021

The Royal Court recently imposed a hefty £550,000 fine on a firm for failing to ensure that, in practice, its anti-money laundering (AML) policies and procedures were being applied effectively and consistently. Notably, the Royal Court was not deterred from imposing a fine by the fact that the failings related to only one client structure. Firms must therefore ensure that their AML controls are being applied effectively across their entire business – for, as this judgment shows, the cost of failing to do so can be high.

In force: Financial Services (Disclosure and Provision of Information) (Jersey) Law, Order and Regulations
Jersey | 08 February 2021

The Financial Services (Disclosure and Provision of Information) (Jersey) Law 2020 recently came into effect, introducing a revised statutory framework for reporting information on beneficial owners and controllers. This article provides an overview of the secondary legislation introduced under the law – namely, the Financial Services (Disclosure and Provision of Information) (Jersey) Order and the Financial Services (Disclosure and Provision of Information) (Jersey) Regulations – and the filing deadlines.

Financial Services (Disclosure and Provision of Information) (Jersey) Law 202-
Jersey | 02 November 2020

This article looks at the government's introduction of new legislation in relation to beneficial ownership and controlling interests requirements. This new legislation, the Financial Services (Disclosure and Provision of Information) (Jersey) Law 202-, aims to implement in Jersey the requirements set out by the Financial Action Task Force, the intergovernmental body that sets standards for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.

Five steps to avoid insider fraud
Jersey | 30 March 2020

Insider fraud is a problem that persists at all levels of society, irrespective of whether the entity has commercial or altruistic motives. This begs the question of what internal controls and procedures employers in any sector can implement to reduce the risk of insider fraud. This article outlines five steps which could significantly reduce the risk for businesses of any size or type.

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.

Tracing a new path: the final word
Jersey | 21 September 2015

The Judicial Committee of 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.

Review of 2014 amendments to substantive offences under Proceeds of Crime Law
Jersey | 25 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.

Tracing assets: courts still following new path
Jersey | 13 May 2013

The Court of Appeal recently endorsed the approach taken by the Royal Court in its landmark judgment on the circumstances under which proprietary claims may be established and assets traced. In so doing, the appellate court has expressly acknowledged that in future it will be making an evaluative judgment where it is asked to treat one asset as representing or being a substitute for the plaintiff's original property.

Tracing a new path: court delivers landmark judgment on asset tracing
Jersey | 21 January 2013

Jersey's Royal Court recently delivered a landmark judgment, eschewing long-established principles of common law concerning the circumstances under which proprietary claims may be established and when assets may be traced. While the outcome of this case may have done justice between the parties, the wider implications of the court's bold demonstration of jurisprudential independence remain to be seen.