Three developments announced in January 2006 will benefit Jersey’s funds business. First, the Dutch Financial Markets Authority has adde...

Three developments announced in January 2006 will benefit Jersey’s funds business. First, the Dutch Financial Markets Authority has added Jersey to the list of jurisdictions whose regulation is considered sufficient to allow a light touch by the Dutch regulator; this enables Jersey funds to be listed on the Euronext exchange without the need for a licence in the Netherlands. Second, the introduction of the Listed Fund Guide by the Jersey Financial Services Commission on 8 January 2007 ensures that closed-ended investment funds listed on leading stock exchanges including London, New York, Dublin, Channel Islands, Alternative Investment Market and Euronext can be subject to a streamlined 72-hour approval process. The regime is available to private equity, property and other alternative investment funds, such as hedge funds and funds of hedge funds. Third, a tax change thought likely to make Jersey a more attractive domicile for certain fund and investment structures, including UK REITs: an amendment to ensure that Jersey companies are treated as non-resident for tax purposes if certain conditions are fulfilled. Graeme McArthur, of the Jersey Funds Association, said: “The income tax amendment will enable Jersey’s funds industry to compete directly with jurisdictions such as Cayman, which in the past has invariably been the chosen domicile when a structure requires a non-UK incorporated but UK tax-resident company.”