London-based active investment company Man Group has announced that it plans to incorporate a new holding company in Jersey so that it can realign its corporate structure.
The decision to set up the Jersey holding company, which was announced in a trading update from the group on Friday, reflects significant growth in Man Group’s US business over the past five years. The firm said it will retain its London listing and remain a UK tax resident.
The statement said: "We are proposing to adjust our international governance and corporate structure. The proposed structure should provide greater flexibility for the group, support the governance of the business as we continue to deliver for our clients and invest for our shareholders, and is consistent with market practice for many global institutional asset management businesses."
The proposed holding company structure, which is subject to shareholder approvals, would be implemented by means of a court-approved scheme of arrangement under the Companies Act 2006. Shareholders would exchange their existing ordinary shares in Man Group for shares in the new Jersey company on a one-for-one basis, and Man Group would remain the head of the FCA-supervised regulatory group (a sub-group of new holding company).
Other current subsidiaries of Man Group that operate in the US and Asia would be reorganised under the new holding company and will continue to be regulated by their local regulators.
Necessary approvals will be sought from regulators, including the FCA. Should any regulatory capital efficiencies be achieved as a result of the reorganisation, the benefits would be considered in the same way as other capital surpluses.
Further details of the proposal will be provided in due course.