“Our new investment vehicle — the foundations — can be very effective vehicles in succession planning and private wealth management strategies for the high net worth business families and non-resident Indians. We already have a large clientele among HNI families in the middle east and now we feel that we can offer a lot to Indian families as well,” said Geoff Cook, chief executive, Jersey Finance, who was in India with a delegation to promote the island’s finance industry.
With Switzerland embroiled in a controversy over the decision to soften sections of its banking secrecy laws, Jersey now hopes to make inroads into the Indian clientele. “We are in talks with sections of the Indian government, the Reserve Bank of India and Sebi and hope that some time in future we will be able to negotiate a treaty with India on the lines of the double tax avoidance pact that is in place between India and Mauritius,” said Wayne Gallichan, director of international trade and investment at Jersey Enterprise. The fact that Jersey is a well-regulated jurisdiction recognised by the IMF, the Financial Action Task Force and the Financial Stability Forum is being showcased along with the fact that it’s tax neutral and enjoys proximity to London and its capital markets.
“NRIs, both in the middle east and with non-domicile status in UK, are already using the financial services in Jersey to make dollar investments in real estate in Europe where prices have been crashing. A strong dollar is also making investments in India very attractive for this segment,” said Hiren Patel, partner at Verraslaw, a niche legal services firm in Jersey. He added that a vibrant community of NRI finance professionals also makes Jersey attractive for the community in UK and other countries of Europe. “The banking and legal systems are all based on the British system which is similar to India. Besides, the Indian community is very visible in Jersey and we have Diwali parties and many Indian restaurants,” he said.
Mehul Kotedia, CEO of Mekad Limited, a firm providing accounting, taxation and business consultancy services, also agreed. “Besides cultural ties that date back many years, Jersey also provides lifestyle advantages which will appeal to high-net worth Indians. UK is also conveniently close. In fact, Indians setting up offshore companies can use the DTAA with Mauritius and set up two entities in Jersey and Mauritius which will provide a cross-border advantage,” he felt.
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