Working together for a better future

Transcription

1 Working together for a better future Our future As Islanders, we are fortunate to be able to enjoy an enviable way of life. A stunning location where families can flourish, excellent public services and a thriving Island economy. The finance industry is proud to play its part in the Island s success and is focussed on working with key partners in the community to ensure this continued prosperity. Jersey: A leading international finance centre (IFC) Jersey is a leading international finance centre which prides itself on being at the forefront of industry developments, with a forwardthinking, well-regulated approach. What sets it apart from other jurisdictions is its expert workforce, first-class regulatory and legal framework and its political and economic stability. INFRASTRUCTURE WORKING TOGETHER FOR A BETTER FUTURE EXTERNAL RELATIONS EDUCATION ACCESS TO TALENT INNOVATION SKILLS REGULATION Building Our Future CYBER SECURITY TAX STABILITY BREXIT About our industry Financial and related professional services are key to Jersey s prosperity accounting for 25% of total private sector employment and contributing 41% of the Island s total economic output. As well as employing over 13,000 people across the various finance-related sectors, financial and related professional services enable jobs and growth in other areas of the economy, creating and supporting jobs across the Island. In fact, for every 10 jobs in finance, another nine jobs are created and supported in other Island industries. And every 1 million generated by the finance industry supports another 300,000 elsewhere in our community. This is money that helps with business growth and start-ups. We are the largest taxpayer, with financial services contributing over 300 million in taxes, which equates to more than half the total of all taxes raised each year in the Island equivalent to the budget needs of the Department of Health and Social Services, the Department of Home Affairs and the States Assembly. To ensure that the finance industry can continue to make a positive impact both locally and internationally, to provide ongoing opportunities for the next generation and to maintain our position as an award-winning jurisdiction, we ask those participating in the election process to consider our views and our vision for the future.

2 Skills: For the future People and skills are at the heart of the Island s prosperity and we must ensure that the population is best equipped for ongoing economic success. Put simply, without the right skills, we will not be able to meet future employment demands and sustain economic growth. Currently Jersey s financial services workforce still meets the traditional demands of its roles. The industry already invests heavily in the training and development of its employees, however the future of financial services is becoming ever more digital and technology is changing the types of work we do. Whilst most of the roles within financial services are value add, e.g. provision of expertise, it is crucial that we invest in developing the right high-level skills, including softer skills such as communication and teamwork, to ensure that our workforce is equipped with the right competencies for now and in the future. Consistent and joined up approach within Government, education and industry stakeholders regarding current and future skills requirements Working with our partners including Government to ensure we are future proof and that we embrace change Identify knowledge gaps and invest in relevant actions including training to close those gaps Education: Home-grown talent We need to work together to ensure that the Island generates a workforce able to service the rapidly changing needs of the sector and this must start with the youngest in our population. In 2016, Jersey s financial services industry recruited 320 local employees directly from school or university. Jersey needs to provide a first-class education service by prioritising and supporting the highest quality teaching and governance, from early education right through to university degrees and beyond. This performance together with academic achievements should be measured against the best in class. There needs to be a stronger focus on STEM-based subjects (science, technology, engineering, maths) to align with the future direction of travel and employee requirements. Establish a regular forum for Government/schools/ universities/training providers/employers to ensure that available resources meet industry demands Examine competitor jurisdiction initiatives (other than the UK) e.g. Singapore, Switzerland and Hong Kong on primary, secondary and tertiary education Establish clear Key Performance Indicators (KPIs) to measure performance of local students against our global competitors Home-grown talent. Over the past decade, almost 3,000 young Islanders found their first job in finance.

3 Access to talent: For continued success IFCs globally compete for a shallow talent pool. The need for highly qualified staff within the overall Jersey finance industry requires specialists in the short and medium term, as local graduates and workers will simply not meet the predicted demand. Government and its policies, in particular the population policy, should reflect this supply-demand gap and the changing needs of the Island to allow for migration targeted at skills critical to the industry s growth and success. Access to a highly skilled workforce will become one of the major determinants of where businessess are located. The results of our Employment and Growth survey show positive growth predictions, with an extrapolated increase of 811 jobs in the next five years throughout Jersey s finance sector. The expectation remains that the majority of roles (83%) will be filled from the on-island population. By allowing continued access to the best talent and know-how, be that home-grown or from outside of the Island, we can ensure that Jersey can grow its economy and support an aging population. Collate data on both demand and supply for informed decision making on talent mobility policies Engage with young people at grass roots level so they have a full understanding of employment opportunities available Through the States Housing and Work Advisory Group (HAWAG) ensure the ongoing supply-demand dialogue with the industry to understand talent shortages and requirements Stability: For a lasting legacy In a globalised world, a stable system of regulation and tax that encourages innovation and investment will help Jersey to stand out from the crowd as an attractive place to do business, supporting communities now and in the future. Stability and a compelling future strategy for the Island that does not change in line with political cycles will provide a solid base for growth. Having a predictable and attractive business environment will encourage investment and benefit the economy. With ongoing economic challenges such as the increasing demand for healthcare and welfare (pension) provision, a robust and successful finance industry will play a pivotal role as a sustainable source of government funding for future certainty. Create a KPI framework focussed on productivity in the economy Implementation and ongoing review of the Jersey Financial Services Industry Policy Framework A predictable and stable business environment will encourage investment and benefit the economy Good for Business. Every 1 million generated by the finance industry supports another 300,000 for other local businesses.

4 Regulation and legislation: Setting Jersey apart One of the key advantages of a small jurisdiction such as Jersey should be its nimbleness and ability to respond and react quickly to updating legislation and policy. In order to maximise this advantage, Jersey should enable innovation, growth and the taking of appropriately managed risks to provide a fit-for-purpose and competitive environment in which business can flourish. Foster an environment enabling faster finance-related legislation process Maintain collaborative dynamic with the industry, Government and the regulator Embed an agile approach to innovation and improved speed to market Tax: A strategic approach Jersey should adopt a strategic approach to future tax initiatives, including those at the global level to retain our status as a globally competitive jurisdiction. We have to play an active role in international tax debates and maintain commitment to international standards, such as The Organisation for Economic Co-operation and Development s (OECD) base erosion and profit-shifting (BEPS) programme. This will ensure that Jersey remains a valued part of the British family and a good neighbour to the EU. The Government should enshrine the principles of competitiveness, stability, predictability, consultation, coordination and continuity. Ongoing engagement and dialogue with the industry Ongoing policy support for low, flat and simple tax system Promote the work that Jersey does in anti-money laundering (AML) and transparency Representation at local and international level with relevant policy forums Down to earth economics. Every 100 generated by the finance industry produces another 30 in Jersey s economy.

5 Infrastructure: The right connection Innovation: A vital factor The Island must ensure ongoing investment in strong infrastructure to fully capitalise on Jersey s clear potential. This includes investment in additional air links, office space, robust digital infrastructure such as broadband connectivity which meet the needs of the business community as well as the general population. By continuing to develop its infrastructure, Jersey will provide greater support to its on-island firms and residents, creating an environment where it is easy to do business, whether on-island or remotely. Monitoring and review of air/sea links to be compatible with business needs Implementation and ongoing review of the Digital Policy Framework Continued investment in the JIFC, a centralised hub, attracting quality businesses and high value employers The Island s future is dependent on a creative, forward-thinking finance industry and Government should work together with the industry to foster a collaborative approach to innovation. It is vital that financial services legislation and regulation provide appropriate level of governance but allow for growth and diversity through new products and services to sustain excellence and promote innovation. Foster an environment for developing FinTech proposition Create a KPI framework focussed on innovation Effective and timely collaboration to ensure speed-to-market of new products, services and regulation The ripple effect. For every 10 jobs in finance, nearly as many more are created elsewhere in the community.

6 Cybersecurity: A world-class proposition Cybersecurity will be vital for Jersey s continued success as an IFC. The majority of business undertaken by our industry is cross-border and involves sensitive, personal information exchange. Our clients trust us to treat this information with the care and security it deserves. Reputation is hard won and easily damaged. That s why strong, world-class cybersecurity will support businesses and Islanders by helping them stay safe online. It will also ensure that Jersey is seen not only as a safe and stable place to live and do business, but also as a modern and cutting-edge centre of excellence. It is the responsibility of each and every business to ensure they have appropriate cyber controls in place, but there is a role for Government to set the tone at a jurisdictional level and Jersey s credibility in cybersecurity is closely linked to the visibility of a clear, Government security strategy. External relations: A positive image As demand for cross-border investment continues to grow in the future, Government needs to support business flows from all priority markets for the financial services sector through investment and commitment in existing relationships and forging links with future markets. It is vital that Government provides support for financial services through an ongoing commitment to visibly supporting geographic expansion initiatives and through provision of an attractive, accessible environment in which the sector can flourish. Work together with the industry on international relations Secure and maintain essential market access in priority markets Implementation and ongoing review of the Digital Policy Framework Embrace collaboration with the industry through the Cybersecurity Forum Building our future. Over the past decade, almost 3,000 young Islanders found their first job in finance.

7 Brexit: The way ahead In principle, with regards to market access and equivalence, Jersey is not directly affected by Brexit in its financial services sector. It is not within the single market today and would not be after Brexit. It is also likely that investors will seek stability and certainty in the current Brexit context putting Jersey s stable political and financial environment in a positive light. While it may be that leaving the EU will have long-term positive effects for the UK economy, the Island should be ready for possible negative impacts in the short- and medium-term future. Depending on the magnitude of the impact, the UK may become less attractive as a recipient of international capital. Because a large proportion of the investment flows channelled through Jersey are invested in the UK, it is clear that we should be thinking ahead and planning for such an impact. It is vital that Government maintains support for the financial services strategy and that we work together with the new Brexit context in the future. In conclusion: Working together for a better future As we look ahead, there are many great opportunities but also significant challenges on our journey. However, we believe that our forward-thinking approach is placing us in a position of strength. The financial services sector in Jersey faces unprecedented changes over the next few years, but we are confident that by working together with Government, the regulator, our Members and Islanders, we can secure our future success. It is clear that the financial services industry has an important role to play in the future of the Island: an anticipated 811 jobs will be created over the next five years, with the expectation that 83% of these will be locally filled. The industry currently contributes more than half of all taxes raised in the Island. When the finance industry does well, the Island does well and, with your support and input, we are confident that we can achieve great things in the coming years, not just for our industry but, just as importantly, for our community as a whole. Continue the current successful tactic of monitoring and engaging with the UK Create/maintain stakeholder engagement plan, pointing out coverage of UK and EU individuals, coupled with a clear set of messages Secure advocacy for Jersey with key political partners and particularly with the UK Working together we can secure our future success Here for everyone. A successful finance industry means more jobs, more services and a stronger economy for Jersey.

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