'Business as usual' with the European Investment Fund

Tuesday 23 April 2019

The head of Jersey Finance has welcomed assurance that there should be no barriers to local firms carrying out ‘business as usual’ with the European Investment Fund (EIF) following the island's removal from the 'tax haven greylist.'

The European Investment Bank (EIB) published its updated policy in March, to replace an interim approach that was in place while the EU Code of Conduct Group on Business Taxation undertakes a comprehensive screening process to assess non-cooperative tax jurisdictions.

With EU Finance Ministers having formally confirmed Jersey’s position as a cooperative jurisdiction following the introduction of substance legislation in Jersey, the new EIB policy confirms that there should be no impediment to private equity firms in Jersey continuing to carry out ‘business as usual’ with the EIF.

Pictured: Joe Moynihan, CEO of Jersey Finance.

Joe Moynihan, CEO, Jersey Finance, said: “This is a really positive repercussion of the efforts of Jersey’s government and financial regulator over the past couple of years to work with counterparts in Europe and demonstrate that Jersey is a cooperative and transparent jurisdiction. Our focus is on supporting future growth in Europe and other international markets, and with that in mind this new policy provides some welcome clarity around Jersey’s relationship with the EIF.

"It is clearly excellent news - for those firms in Jersey that do business with and through the EIF and for those SMEs across Europe that are benefitting from it.”

Mike Byrne, Chairman of the Jersey Funds Association, added: “Our industry has developed over many decades to offer a sophisticated environment for cross-border funds, with a particular focus on alternatives including private equity, with around a third of funds business here touching Europe. With that in mind, we feel we have a great deal of experience and expertise to support the EIF in its ambitions.

"The EIF has long been a key investor into funds raised in Jersey and the confirmation that it is able to continue to engage with and draw on the strengths of our funds industry is really positive for everyone and will undoubtedly be a shot in the arm for private equity managers and service providers here too.”