IFLR 1000
The Guide to the World's Leading Financial Law Firms

CONTEXT AND TRENDSContrary to its island neighbour Guernsey, there have been cases of security review and enforcement cases in Jersey. "There's been the issue on security review, pre-enforcement advisory work for both creditors and borrowers," says a partner....

CONTEXT AND TRENDS

Contrary to its island neighbour Guernsey, there have been cases of security review and enforcement cases in Jersey. "There's been the issue on security review, pre-enforcement advisory work for both creditors and borrowers," says a partner. Due to the pressure of banks to improve their balance sheets, institutions are now more prepared to enter enforcements. For example, firms are increasingly involved in the Jersey aspects of enforcement cases with Nama (National Asset Management Agency) in Ireland.

Normally banks would be in "wait and see" mode in terms of lending in the current economic environment, but over the past six months there have been cases of new money lending, with most of them relating to UK property transactions. "There is a lot of activity in that sector," says a partner, "but with some enforcement activity as well".

In truth, after reduced activity last year, UK property transactions have returned and appear to be the main generator of work for Jersey lawyers, especially in M&A. "There's been M&A work, with a focus on UK property through Jersey vehicles," confirms a partner. Another agrees though points out that most of the work is focused at the high-end of the market: "If we are looking at activity in Central London, there's a lot of activity. We're not expecting activity from a regional shopping centre".

In capital markets, firms are involved in debt listings on the Channel Islands Stock Exchange (CISX) and some listing of shares overseas on exchanges such as the NYSE.

The market as a whole remains pretty focused, but there is hope of seeing a broader range of mandates in the coming year: "We've seen some signs of new activities, but we'd like to read that as recovery signs," says one partner.

CONTEXT AND TRENDSWhen it comes to investment funds in Jersey practitioners are busy with insolvency work. "There are a lot of contentious activities," says a partner....

CONTEXT AND TRENDS

When it comes to investment funds in Jersey practitioners are busy with insolvency work. "There are a lot of contentious activities," says a partner. With litigation and disputes against directors and shareholders, mainly related to hedge funds bankruptcies, there has been talk about evaluation issues on investment funds. "There are a lot of contentious and semi-contentious funds," says a partner.

On the other hand, there have been various new fund launches, usually alternative funds such as "diamond funds". Property funds are also popular, with one partner claiming: "We're getting a share of this work". Other sectors have proved to be popular, such as life sciences and clean-tech funds such as the Tatarstan Clean Tech fund.

Private equity funds are just as popular as ever. Funds such as Ethos fund VI, South African private equity fund, and Adveq Opportunity Management III, a Swiss private equity fund have all been seen in the market.

Another issue Jersey is facing is the Alternative Investment Funds Managers Directive (AIFMD), which has created some uncertainty around offshore jurisdictions. "Clients are not asking for advice anymore, when it first came out three years ago, there was quite a lot of panic, there were concerns this would be damaging for Jersey," notes a partner. "Within the first week of being issued, we had tax advisers, legal advisers coming to us saying they had solutions; they worked well using Jersey structures," continues the partner. Lawyers are confident that: "Jersey has done everything it needs to in order to be accepted".