This section gives an overview of financial issues that form a major part of the interaction between the UK and Jersey, Guernsey and the Isle of Man. Officials from UK government departments may find it useful to have an awareness of the importance of the financial services industries on Jersey, Guernsey and the Isle of Man, how they are regulated and international taxation matters that involve the UK.
The financial services industry is the major contributor to the economies of Jersey, Guernsey and the Isle of Man. All three islands legislate for and regulate their own financial services industries. Each island has an organisation responsible for promoting the financial services industry. Their websites have more information:
Guernsey, Jersey and the Isle of Man each has an independent Commission responsible for regulating and supervising the financial services industry. They ensure international standards are met and the integrity and efficiency of financial services are maintained. These are the equivalent bodies to the Financial Services Authority in the UK. The UK Financial Services Authority does not have any involvement in the regulation of financial services in Guernsey, Jersey and the Isle of Man. More information is available from each Commission's website:
Guernsey, Jersey and the Isle of Man are committed to meeting international standards for financial regulation. They are members of the Offshore Group of Banking Supervisors of the Basel Committee on Banking Supervision and the International Organisation of Securities Commissions. These are the main bodies responsible for the setting of international standards in the banking and securities sectors respectively. Through the UK, Guernsey, Jersey and the Isle of Man participate in the Organisation for Economic Co-operation and Development and have had treaties that the UK has signed up to, extended to them in areas such as anti-corruption, anti-bribery and anti-money laundering.
The Organisation for Economic Co-operation and Development (OECD), the International Monetary Fund (IMF) and the Financial Action Task Force (FATF) from time to time assess Guernsey, Jersey and the Isle of Man against international standards in financial regulation. More information is available from each island's finance website.
Jersey, Guernsey and the Isle of Man have responsibility for setting their own taxation policies. The UK has responsibility for their international relations. Increasingly these areas overlap as international organisations try to combat harmful tax measures and tax evasion and avoidance. Jersey, Guernsey and the Isle of Man are involved in international taxation matters including the EU Code of Conduct on Business Taxation, EU Savings Directive, and the Organisation for Economic Co-operation and Development (OECD) Tax Information Exchange Agreements (TIEAS). The DCA is the principal contact point for the Islands with the UK Government.
The European Union Savings Directive aims to counter cross border tax evasion by collecting and exchanging information about individuals who receive income from savings held outside of the state where they are resident. Jersey, Guernsey and the Isle of Man were entrusted by the UK to conclude negotiations with EU member states for themselves rather than having UK agreements extended to them (see European Union). For more information, see: