The Bankruptcy (Netting, Contractual Subordination and Non-Petition Provisions) Law relates particularly to structured finance and securitisation transactions.
If approved, it will bring Jersey into line with EU recommendations and enhance the Island’s attractiveness for this type of financial services work.
The law, which is due to be brought to the States in the spring, is one of a raft of new measures put in progress by Paul de Gruchy, the Economic Development Department’s finance industry executive.
As reported last week, the department has just issued the final draft of proposed changes to the Island’s Companies and Bankruptcy legislation, including new measures for setting up protected cell companies.
Also out for public consultation are proposals to introduce a new law on foundations and proposed amendments to Jersey’s trust law.
Foundations have been under discussion for some time as an additional wealth management and estate planning product which could be offered particularly in jurisdictions unfamiliar with the concept of trusts.
The general review of Jersey’s Trusts Law is the first to be carried out since it was brought into effect in 1984.
The amendments will aim to update the provisions in the light of subsequent changes and legal outcomes, for example in relation to settlor reserve powers.
Another draft in embryo is a new security interest law, which will apply to anyone lending money.
Mr de Gruchy explained that this would build on a comprehensive report by Professor Sir Roy Goode, a specialist responsible for reviewing UK pensions legislation.
The law is particularly aimed at firms working in structured finance, but will also have an impact on local firms with moveable property.
