Yesterday's general election has resulted in a hung parliament and it now seems apparent that Theresa May will continue as Prime Minister but with a reduced majority, rather than the increased overall majority that she hoped would be the outcome.

Mrs May is expected to go to Buckingham Palace to seek leave to form a government at 12.30 this afternoon, but it is likely to be a Conservative minority government with the support of the DUP.

While the new political landscape inevitably brings with it a greater level of uncertainty, it is worth noting that Jersey's relationship with the UK remains unaffected. Jersey's Government has a network of official and political contacts across Whitehall, and that continuity and stability will mean that the interests of the Island and the finance industry continue to be represented irrespective of political change.

The financial markets have reacted to the election results in predictable fashion and, while Sterling is likely to remain under pressure whilst uncertainty persists, this should be seen as a short-term response. Jersey Finance will be reminding stakeholders that our reputation as an international finance centre of excellence, the stability of our regime, and our access to the European market are all unaffected.

The next ten days are likely to be marked by a great deal of speculation and hyperbole ahead of the Queen's Speech and the start of Brexit negotiations, both of which are set for 19 June. We will continue to keep a keen eye on developments and to emphasise that neither political uncertainty nor the UK's Brexit negotiations detract from the strength of Jersey's position as a safe harbour for international investors in these uncertain times.

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