Jersey LLC law will build on Island's offer to US clients

Jersey's new LLC law strengthens the Island's offering to US managers to build on the £169 billion of US assets and funds already administered here, says Ogier partner Matthew Shaxson.

The Island's legislature gave final approval to the new LLC structure, which largely mirrors the existing Delaware model, last week.

With a significant amount of US assets already administered in Jersey, and with the Island's appeal to US investors boosted by the uncertainty created by Brexit, Matt says that the new law is well timed.

"The respected Z/Yen survey this week rated New York as the world's top financial centre, having overtaken London in the rankings," he said.

"That – and the substantial US assets and funds already administered here – makes the move by Jersey to develop a robust and familiar LLC model particularly opportune.

"The Delaware LLC model is very familiar to the US market, and offers a new structuring option that is tax transparent and which offers the limited liability protection of a company and the flexibility of a partnership in one vehicle.

"By offering a flexible model that caters for bespoke voting rights, internal governance and contribution obligations, this new structure is likely to be of interest to US managers and onshore counsel."