Channel Islands and Isle of Man update
The Crown Dependencies of Jersey, Guernsey and the Isle of Man are navigating a new era of opportunity and regulatory scrutiny, strengthened by positive MONEYVAL evaluations, rising demand for sustainable finance, and accelerating fintech innovation. As the islands refine their market offerings in response to global tax changes and shifting client priorities, contributors report a surge in collaborative wealth structuring, growing interest from emerging jurisdictions, and an industry-wide push to meet rising compliance and climate reporting expectations. Together, the Dependencies are reinforcing their reputation for stability, transparency and adaptability, positioning themselves as trusted leaders in the international financial services arena.
Overview – The financial landscape of the Crown Dependencies
The financial landscape of the Crown Dependencies – Jersey, Guernsey, and the Isle of Man – is undergoing transformation amidst regulatory evaluations, emerging opportunities in sustainable finance, and evolving global market demands. Although the term ‘Crown Dependencies’ can often cause debate as the islands generate their own prosperity.
Central to this dynamic environment is the MONEYVAL evaluation process, a critical benchmark in anti-money laundering (AML) and counter-terrorism financing (CFT) compliance, with Jersey recently receiving a positive assessment. This momentum is further bolstered by innovations in fintech, sustainable finance, and the exploration of new tax regimes, solidifying the dependencies’ position as leaders in the international financial services sector.
Our contributors say that wealth structuring is becoming more collaborative, with families engaging in decision-making processes early to save family fighting and that trustees and service providers are extending their focus to new jurisdictions like Turkey and non-traditional markets within the UAE.
Mirek Gruna, Regional CCO, UK, Ireland and Crown Dependencies based in Jersey at IQ-EQ says, “For the Crown Dependencies, the MONEYVAL assessments are a key focus and theme at the moment, with Jersey’s evaluation report published earlier this year, Guernsey’s due to be published imminently, and the Isle of Man’s assessment scheduled to take place in April 2025. Certainly, the report on Jersey was hugely positive and gave the island particular praise across a number of areas, including accuracy and transparency in capturing beneficial ownership information. Off the back of the report, Jersey is showing continued willingness to cooperate with international regulatory bodies and blaze a trail in the regulated space globally with its high standards. This includes continued efforts to embed the updates to the Proceeds of Crime Legislation, also known as ‘Schedule 2’.”
For those who have heard about MONEYVAL but not understood the finer points, MONEYVAL is the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism, operating under the Council of Europe. ‘It evaluates compliance with international standards in combating money laundering and the financing of terrorism (AML/CFT).’ A bad rating can deter foreign investment and lead to increased regulatory requirements for financial transactions. Cyprus has also undertaken and improved its standing on MONEYVAL.
Gruna continues, “That said, all the Crown Dependencies will need to evolve their market-facing offering after the UK Government announced the end of its UK resident non-dom regime, which could see some clients shift to other jurisdictions. Sustainable finance is serving as a big opportunity for Jersey, Guernsey and the Isle of Man to lead by example, and indeed Jersey Finance has recently appointed a dedicated resource to do just that, while the Isle of Man launched its Sustainable Finance Roadmap in November.”
The UK and FIG
“There is also a particular focus on fintech, Gruna explains, including moves towards regulating digital assets as an asset class that will in future become more prominent within private wealth and fund structures administered across the Crown Dependencies.” I ask about FIG, the new UK Foreign Income and Gaines regime. “We do see a potential opportunity in the UK’s new residence-based taxation regime; people looking to move to the UK under that regime should give due consideration to setting up a structure in any of the Crown Dependencies as part of pre-arrival planning.”
Guernsey
The compliance price of a low carbon economy for trustees
Cerisse Fisher, Group Partner, Collas Crill, Guernsey discusses a global, sustainability theme pertinent to Guernsey, “In 2021 the GFSC (Guernsey Financial Services Commission) introduced climate risk into its Finance Sector Code of Corporate Governance to shift to a low carbon economy. From that point, the boards of each local CSP (Corporate Service Provider) should consider the impact of climate change on the firm’s business strategy and risk profile and, where appropriate, make timely climate change related disclosures. In July 2024 the GFSC issued a discussion paper on the Future of Sustainability Reporting in the Bailiwick of Guernsey and a Collas Crill round table found that trustees were keen to ensure their businesses comply and play their part in creating a low carbon economy. However, many felt with stretched compliance teams and continual and involved training to understand the requirements and implications, it was going to take more than enthusiasm to be implemented.”
Jersey
Stability and innovation
Joe Moynihan, CEO, Jersey Finance with four decades in financial services under his belt, adds his thoughts on Jersey, “The theme of stability has long been central to Jersey’s success and reputation. For more than 60 years, Jersey’s IFC has offered a stable and predictable environment for international investors, underpinned by its reputation, legislative framework and regulatory standards. MONEYVAL’s highly positive 2024 assessment of Jersey’s anti-money laundering and counter-terrorism measures reinforced its standing as a leader among IFCs. Our willingness to be an active partner in global standard-setting was also highlighted in October when the Island approved the OECD’s Pillar Two legislation. These milestones form part of the strong foundations which ensure Jersey remains a trusted partner in an uncertain world. “For 2025 and beyond, I expect the trends shaping the future of financial services to include further advancements in the fintech space, tokenisation and the evolution of virtual assets, and addressing the UN’s Sustainable Development Goals with a focus on sustainable finance. By driving innovation in these areas and equipping a skilled workforce, Jersey is uniquely positioned to deliver value to the international markets it serves.”
Turkey and The Jersey Private Fund
Nick Marshall, Partner at Nicolle Marshall, a boutique private client law firm, set up by Clare Nicolle and Nick Marshall in Jersey this year, adds a comment. “The Channel Islands and the Isle of Man remain highly attractive for UHNW and HNW families as all offer political stability, good legal frameworks, and favourable tax regimes. Trustees continue to see a flow of work from the Middle East, Africa and increasingly the Far East. Service providers are looking beyond Dubai and Abu Dhabi to other UAE states and Saudi Arabia. The Channel Islands are still popular with entrepreneurs in Kenya, Nigeria and South Africa for family wealth structuring. Turkey has also become a jurisdiction where some trusts are seeking activity. The Jersey Private Fund is increasingly being looked at as a private client structure and not just for traditional collective investment.”
Less fighting, more advance collaborating
Adam Fellows, Senior Associate, Walkers (Jersey), “Clients are increasingly taking advantage of reserved powers in Jersey structures and doing so in a more sophisticated way. While the usual requirements for Protector consent and investment direction are still popular, clients are also considering in greater detail how and when those powers should be used. They are especially keen to include more detailed provisions to allow their children to get involved in the structures and to work collaboratively to make decisions. Clients with multiple children want the settling of their wealth to be an opportunity for the family to work together, not an excuse to fight.”
Sarah Bartram–Lora Reina, formerly trustee at Stonehage Fleming and president of Jersey Association of Trust Companies (JATCo),now at trust company, IQ-EQ says of Jersey, “2024 marks the 40th anniversary of Jersey’s Trust Law, with amendments underway to address priority claims in insolvent trusts and allow beneficiaries to terminate or vary trusts.”
Alistair Rothwell, CEO and Co-Founder of the Fairway Group a trust, funds and pensions fiduciary based in Jersey, who has been working within the offshore finance industry since 1992, says, “At Fairway, we’re seeing a real uptick in managed services enquiries as businesses navigate the growing complexities of corporate governance. The rising focus and cost burden of compliance are driving both startups and established enterprises to seek robust solutions to operations and ensure they meet international best practice. Additionally, we’re witnessing a notable trend towards consolidation, with families restructuring existing entities into Private Trust Companies (PTCs), and sometimes even Managed Trust Companies (MTCs). This approach provides families with greater involvement in decision-making and often serves as a stepping stone towards setting up a family office, which may, or may not, have a physical presence in the Island.”
Isle of Man
Sustainability in their sights
Michael Crowe, CEO, Finance Isle of Man, explains their local developments, “The Isle of Man has become the latest member of the United Nations Development Programme (UNDP) Financial Centres for Sustainability (FC4S) network. Joining the FC4S network marks a significant step in delivering one of the key pillars of the recently launched Isle of Man Sustainable Finance Roadmap. The roadmap sets out a clear vision for transforming the Island into a globally recognised hub for sustainable finance, with a focus on fostering innovation, aligning with global sustainability best practices, and contributing to net zero and nature-positive goals.”
Miles Benham, Managing Director at MannBenham Advocates based in the Isle of Man adds his thoughts, “The Isle of Man continues to stand out as a leading jurisdiction for residency and offshore structuring, particularly in light of recent changes to the UK’s non-domiciled regime and residence rules following the Autumn Budget. With its good tax environment, strong regulatory framework, and commitment to economic stability, the Isle of Man offers a compelling alternative for UHNWIs. The island’s many solutions for trusts, foundations, and private companies, combined with its residency options, ensure both flexibility and control for individuals and families navigating new tax landscapes.”
Conclusion
The Crown Dependencies are leveraging their stable regulatory environments, innovative frameworks, and global reputation to adapt to a rapidly changing financial services landscape. From leading in sustainable finance to embracing fintech advancements, these jurisdictions are positioning themselves as resilient and forward-thinking players on the international stage. By focusing on compliance excellence, innovation, and sustainability, Jersey, Guernsey, and the Isle of Man continue to attract global investors while laying the groundwork for a prosperous future.
Key Takeaways
- The Channel Islands and Isle of Man are enhancing their financial services sector through positive MONEYVAL evaluations and sustainable finance trends.
- Wealth structuring is increasingly collaborative, with emerging jurisdictions attracting interest and evolving client needs shaping strategies.
- Fintech and digital assets are gaining importance, offering new opportunities amidst regulatory changes in the UK tax regime.
- Jersey, Guernsey, and the Isle of Man are committed to compliance excellence, sustainability, and innovation to retain their status as global financial leaders.
- Each dependency focuses on enhancing regulatory frameworks and attracting ultra-high-net-worth individuals through favourable tax environments.
Estimated reading time: 9 minutes
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