Spotlight On… Brexit

Author:Jersey Finance
Profession:Jersey Finance Limited
 
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On Thursday 23 June 2016, the British electorate voted to leave the European Union (EU). We are confident that Jersey's financial services industry will continue to be able to operate in both the UK and EU. As a British Crown Dependency, Jersey is not part of the UK or EU. For financial services it has access to the EU market through its own bilateral agreements which are independent from the UK's relationship to the EU.

Overview

The UK held its referendum and the British people have chosen to leave the European Union (EU).

Whilst financial markets are likely to be faced with a period of some volatility, history has shown that Jersey has dealt well with this in the past and will do so again.

Theresa May and her new government will decide when to trigger Article 50, the the legal means by which the UK will leave the EU. It is unlikely to be for some time.

Jersey will have no direct hand in the negotiations for a new framework of relations between the UK and the EU, although it is actively fostering close relationships with the UK decisions makers and influencers.

Given the UK is our closest and most significant trading partner, there will undoubtedly be implications in terms of both risks and opportunities for the Island's finance industry which is estimated to facilitate investment flows into the UK and the rest of the EU to the tune of some £800 billion.

What you need to know

Prime Minister, Theresa May, has commenced negotiations with the EU in relation to the British exit. The UK will need to provide notice under Article 50 of the Treaty on European Union which then triggers a two-year negotiation window, but in terms of legal status the UK will remain a member of the EU for at least the next two years. Jersey's constitutional relationship with the UK, as a British Crown Dependency, will not be affected by the result of the referendum. It is...

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