The recent publication of a new policy from the European Investment Bank (EIB) Group provides clarity around Jersey’s ability to continue to support the European Investment Fund (EIF), according to Jersey Finance.
The EIB Group published its updated policy at the end of March, replacing an interim approach that was in place whilst the EU Code of Conduct Group on Business Taxation undertook a comprehensive screening process to assess non-cooperative tax jurisdictions.
With EU finance ministers (ECOFIN) having formally confirmed Jersey’s position last month as a cooperative jurisdiction following the introduction of substance legislation in Jersey, the new EIB policy confirms that there should be no impediment to private equity firms in Jersey continuing to carry out ‘business as usual’ with the EIF.
The EIF, which is part of the EIB Group, aims to foster innovation and entrepreneurship in Europe by supporting small and medium-sized businesses and helping them to access finance.
Jersey Finance CEO Joe Moynihan (pictured) said: “This is a really positive repercussion of the efforts of Jersey’s government and financial regulator over the past couple of years to work with counterparts in Europe and demonstrate that Jersey is a cooperative and transparent jurisdiction.
"Our focus is on supporting future growth in Europe and other international markets and, with that in mind, this new policy provides welcome clarity around Jersey’s relationship with the EIF.
"It is excellent news – for those firms in Jersey that do business with and through the EIF, and for those SMEs across Europe that are benefiting from it.”