Britain Votes to Leave the EU
24 June 2016
The decision by the UK electorate to leave the EU has triggered a series of events which will lead to a different relationship between the UK and the EU.
The UK Prime Minister has said that he will step down in three months, and that it will be for his successor to trigger Article 50 of the Lisbon Treaty, which will begin the formal process for leaving the EU. We therefore know that we are at the start of a three-month hiatus at the end of which we will have a clearer picture of who will lead the UK in renegotiating their relationship with the EU, and what the expected outcome might be. The two-year process of renegotiation will begin upon the triggering of Article 50.
What Brexit means for Jersey
Jersey's relationship with the EU is based upon Protocol 3 of the UK’s Treaty of Accession, which is dependent on the UK’s membership of the EU. Jersey’s Government are working to maintain the status-quo for when the UK leaves the EU.
In terms of the Finance industry, Jersey’s position remains unchanged. Jersey has always been a third country to Europe for the purposes of financial services.
Jersey Finance have issued a statement in response to the UK’s vote to leave the EU. Commenting on the outcome of the UK’s referendum on the European Union, Geoff Cook, CEO, Jersey Finance, said:
“Jersey’s role as a stable and well-established finance centre should give some much-needed reassurance to investors, their advisers and the asset management community in light of this outcome. Whilst financial markets are seeing a degree of volatility, history has shown that Jersey has dealt well with this in the past and will do so again. Fundamentally, Jersey’s constitutional relationship with the UK will not be affected by the UK’s decision to leave the EU, and we remain convinced that the UK’s long-term position as a financial services powerhouse will continue. In addition, Jersey is already outside of the EU itself and maintains strong access to European markets through its broad and robust third country agreements. These also remain unaffected. Meanwhile, given the increasingly global outlook of Jersey’s finance industry, spanning Asia, the Middle East and Africa as well as Europe, it is in a strong position. Jersey’s financial services businesses have always demonstrated real tenacity in the face of change, whilst Jersey’s government is on the front foot in representing its interests to the UK and Europe, which will continue to be major partners for Jersey, and this should all give confidence to investors.”