New 'competitiveness' plan to protect Jersey's £3bn financial sector

An action plan has been drawn up to make sure Jersey remains an attractive place for financial services firms to do business.

Jersey government has unveiled a major programme of work to safeguard ad grow the 'bedrock' of the island's economy - its £3 billion financial services and related professional services (FRPS) sector.

'Time to Win' follows the most in-depth review of the sector in a decade, and sets out how it will be protected against the threat of losing business to other jurisdictions' international finance centres.

The sector provides two out of five jobs in Jersey, and generates £6 in every £10 of tax revenue - the equivalent of funding the entire Health and Education budgets and most of Social Security.

Expert advice has been compiled to set a direction for ensuring the biggest contributor to the island's £6bn economy can keep and win new business.

The government says its strategy, unveiled to industry today (16 March) will:

• Protect the tax regime with tax neutrality at its core,
• Reduce the costs of doing business for all FRPS firms and their clients,
• Renew an appetite for growth, optimising promotion in priority markets and providing a welcoming front door for new business,
• Innovate processes and products, embracing digitalisation and taking a lead on tokenisation,
• Enhance Jersey's infrastructure, investing in connectivity and its IFC infrastructure.

The government says this the 'most ambitious' set of reforms in a generation, supported by £30 million in the 2026-2029 Budget for investment in competitiveness.

External Relations Minister Ian Gorst, who has responsibility for financial services, says the importance of the financial services industry cannot be underestimated.

"It is the engine of our economy and has underpinned so much of daily life in Jersey for many decades."

However, the world is changing and Jersey is facing increased competition from other centres, and emerging technology is allowing people and businesses to move around with increasing ease.

Deputy Gorst wants to see the island fighting harder to maintain its competitive edge.  He told Channel 103:

 "Our core strengths are just as important into the future, but it's how we put almost a modern innovative approach to that.

"How do we use digitalisation? How do we get ourselves ahead in tokenisation and the crypto world?

"How do we make sure that our regulatory approach isn't bureaucratic and burdensome and duplicative? And how do we promote ourselves even better than we've already been doing?"

"In a fast-changing global landscape, this is a once-in-a-generation opportunity for government, industry and regulator to work together to make sure Jersey seizes the opportunity of this Time to Win.

Deputy Gorst says the next States Assembly and Government of Jersey must take forward the work, which has involved international and local experts, government officials, Jersey Finance and the JFSC and industry partners.

"Any incoming government, any incoming politician, will recognise that, if they want to deliver social services, if they want to deliver a modernised healthcare, if they want to continue to support children in education,  want to continue benefits from social security, they absolutely have to see financial services grow because they'll need that tax date to deliver on their social agenda."

He said it is incumbent on Jersey's leaders create the environment where people around the globe will want to come and use Jersey for their investments.

"So, we're going to support (industry). One of the things that we're thinking about in Revenue Jersey is how we can give an incentive for that investment into technology right across industry."

He concluded:"I am confident that we have a clear framework to build on our long-standing reputation for quality and consistency, and take us forward with renewed energy to safeguard and grow this vitally important industry."