Businesses across the Gulf Cooperation Council (GCC) are legally obligated to provide end-of-service benefit payments (EoSB) to employees. To effectively plan for this long-term financial requirement, multinational corporations need the expertise of international providers who can offer specialist and innovative vehicles.
What are Jersey ISPs?
International Savings Plans (ISP), which came into effect in Jersey on 1st January 2019, are innovative and flexible savings vehicles with the sole purpose of providing employment benefits to individuals outside of Jersey.
On instruction by an employer based outside of the Island, Jersey providers set up a Jersey domiciled irrevocable trust with at least one locally based trustee who is regulated by the Jersey Financial Services Commission.
ISPs sit outside of the pensions framework under Jersey tax legislation so any income generated is not taxable in Jersey.
Why do you need an ISP?
An ISP is the ideal long-term savings vehicle for GCC companies requiring sophisticated solutions to meet their responsibilities to provide EoSBs to employees. Traditional international pensions plans do not go far enough in helping multinational companies to achieve these obligations.
Easily tailored to meet employers’ and employees’ needs, ISPs are accessible at the time the funds are required, such as during redundancy, for university fees or during ill health - as well as on retirement. The vehicle allows employers to provide benefits to employees before the minimum pension age.
A flexible EoSB scheme can help businesses to attract and retain the very best talent, directly impacting the company’s success. As GCC professionals request more meaningful benefits as part of their employment packages, ISPs enable employers to offer enhanced benefits in contrast to the traditional ‘pay out on retirement’ approach.
Why Jersey and Hawksford for your ISP?
Noting the challenges facing GCC multinational institutions in meeting their obligations to provide EoSB schemes, Jersey has been quick to develop and market ISPs and their inherent benefits.
As a leading international finance centre, trusts set up in Jersey provide reassurance that savings schemes and structures are secure in a reputable and highly regulated jurisdiction. Jersey, where Hawksford is headquartered, has a robust regulatory framework and offers political and economic stability.
Hawksford has a long history of administering Jersey domiciled irrevocable trusts, including employee incentive arrangements. We are currently working with a number of multinational GCC businesses to choose the most effective structure for their employee savings schemes, ensuring that the structure meets the long term needs of your business and taking away the burden.
To speak to a member of our Corporate team about setting up a Jersey ISP, please contact us now:
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