Jersey’s government has approved the introduction of provisions that allow Jersey to launch International Savings Plans (ISPs).
Effective from 1 January 2019, the plans, which have been approved by the Jersey tax authorities, enable multinational and international companies to set up savings plans in Jersey for non-resident employees.
It is anticipated the product will have a particular appeal in the Gulf region, which is already a key market for Jersey’s finance industry and where there is a strong demand for such schemes.
The ISPs are designed to be tailored to meet the needs of employer and employee, enabling a payout to employees when their employment ends or on the occurrence of a major trigger event which might include redundancy, ill health or divorce.
If multinational and international companies choose Jersey to set up their ISPs, they will be able to provide benefits to employees before the normal minimum pension age, which is currently restricted to 50 in Jersey.
Geoff Cook, CEO of Jersey Finance, commented: "The ISP is the latest in a series of such products tailored to the needs of international business. Any major international firm or institution setting up ISPs will want to establish them in a reputable, well-regulated jurisdiction with a strong track record and Jersey clearly meets that criteria."