Restructuring banking and
fiduciary groups

14 March2016

Article first published in Jersey First for Finance, by Times Group in March 2016

Changes to the international regulatory and commercial landscape have prompted many financial institutions to review their operations and product lines and, where appropriate, consider restructuring initiatives to minimise the impact of those changes. This has been of particular relevance within the Jersey financial services market with a number of institutions changing their local operations.

Whilst each institution has a unique suite of issues, there tend to be common objectives which include:

  • Simplifying group structures by merging and/or
  • Consolidating vehicles and regulatory licences;
  • Satisfying revised capital adequacy and solvency requirements;
  • De-risking by effecting disposals of non-core business, clients or portfolios;
  • Developing core business and associated infrastructure through investments and acquisitions.

There are a number of potential options available for corporate restructuring in a regulated environment including:

  • Contractual assignments of business portfolios;
  • Corporate Schemes of Arrangement under Part 18 A of the Companies (Jersey) Law 1991 (the Companies Law);
  • Corporate Mergers under Part 18 B of the Companies Law;
  • Private laws;
  • Segregated Account/ Trust Schemes;
  • Transfers under the Banking Business (Jersey) Law 1991 (the Banking Law).

 

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