The financial services sectors of Jersey, Guernsey, and the Isle of Man should see little, if any, change following the UK’s decision to leave the European Union. The crown dependencies occupy a relatively unique political and economic position with regard to both the UK and the EU. The dependencies’ legal and trading relationship with Europe is defined by Protocol Three of the UK’s 1972 Treaty of Accession. Under the agreement, the islands sit outside the EU for most purposes; neither contributing funds to nor receiving funds from the currently 28 member bloc.
Third country status
The islands are part of the customs union and within the single market for the purposes of trade in goods, but not services and as such are treated as ‘third countries’ in terms of financial services regulation.
Passporting, the means by which financial services companies are authorised to provide their services across Europe, does not apply to ‘third countries’. Therefore the crown dependencies have had to develop their own relationships with European countries to facilitate and offer cross-border financial services. Geoff Cook, chief executive of Jersey Finance, told International Adviser on Friday: “The position that the UK will have to get into over the next two years or so, we are already in. We have already had a bilateral dialogue with all European countries over the last decade and longer about our relationship to Europe.” READ ENTIRE ARTICLE >>
[Source: International Adviser - by Kirsten Hastings - June 27, 2016]