JFSCs Martin Moloney says Jersey is not a soft touch jurisdiction
The FT has reported that:- the Jersey Financial Services Commission [JFSC] has launched a blistering attack on Neil Woodford's plan to launch a Jersey-based fund management company, saying
- The island cannot be used as a "back door" to restart his career.
The JFSC also issued a stern warning that:
- Any attempts to exploit the island's close connections with the UK through "regulatory arbitrage" were doomed to failure.
Martin Moloney, director-general of the JFSC, told the Financial Times.
- "Anyone who gets off the plane thinking that Jersey is a soft touch has wasted the price of the ticket.
- Jersey is not the place to come if you are trying to get around UK regulation or any other regulation for that matter,"
Authorisation applications by investment managers to the JFSC are usually treated confidentially. But the regulator took the unusual step of issuing a statement last month, saying
- it was "disappointed" to see a press announcement by Woodford Capital Management in advance of receiving an application for authorisation.
Martin Moloney is quoted as saying:-
- Publicity surrounding Woodford's announcement had "created the very false impression that Jersey could be used as a back door to gain access to the UK market",
- "Jersey has a "very close working relationship" with the FCA and regularly exchanges information with many fellow regulators."
- "No individual would be given "the benefit of the doubt" by the JFSC if there was any uncertainty about their fitness and probity as an investment manager."
- "We would not want Jersey to be used by anyone to avoid the kind of protections, which rightly apply to investors in the UK,"
- "We aim for equivalent or similar outcomes in terms of the level of protection that our regulatory regime provides, and we actively consider the impact that businesses here can have on investors in other jurisdictions."