Service providers, law firms and fund management businesses explain why they think Jersey is a growing jurisdiction for hedge funds.

Wendy Dorman, tax specialist, PricewaterhouseCoopers
Dorman believes Jersey has had some success in helping hedge fund managers relocate to the island. “We have a good industry here. It is buoyant and busy. Marketing, however, is more challenging. There are fewer new funds and we have gone through a quiet period in terms of new business,” she confirms. However, she says business is now picking up. She believes changes in the UK tax regime could push some fund managers and their staff to consider relocating to Jersey. “There is quite a lot of interest,” she confirms. “It makes sense to do business here.” She says Jersey Finance is keen to market the jurisdiction as attractive to hedge fund managers but is careful not to upset the important relationship Jersey has with the UK. While the Swiss are more proactive in wooing managers away from London, Jersey only becomes involved if the manager makes the first move.

Ian Cadby, CEO, Ermitage Asset Management Jersey
“In my view Jersey offers a very credible infrastructure,” says Cadby. “The Jersey Financial Services Commission is very grown up. It is not regulation light but regulation appropriate in line with the UK’s FSA.” He believes the jurisdiction has many attractions for hedge fund managers although admits not all will want to move from the “epicentre of London”. He points out that Ermitage is one of three CTA/managed future funds operating on the island and that CTAs in particular can “operate anywhere in the world. But Jersey is a fantastic place to build a business.” Founded in 1975 Ermitage has operations in London, Jersey and New York. The company, owned by Caledonia Investments, provides a range of intelligently designed fund of hedge fund portfolios, single manager hedge funds and a highly advanced customised portfolio service.

Robert Milner, partner, Carey Olsen
Milner believes Jersey is playing to its strengths. He says the jurisdiction now has a lot less retail fund work and is beginning to pick up more business in the expert fund area. He agrees with others that Jersey is “proportionately regulated”. He confirms he is seeing a lot of interest for closed-ended listed structures as well as unit trusts into the UK. He says the firm has a lot of business in the pipeline and believes as the economy recovers the firm will be busy with more funds work. He is not sanguine about Jersey’s positions vis-à-vis the European Union’s alternative investment fund managers (AIFM) directive, although he believes Jersey has many plus points. “Jersey will do all it can to maintain a good position with the EU and will be at the forefront in gaining equivalency,” he says.