THE value of Jersey’s funds sector is expected to continue to fall as a result of the current global downturn.

But Island firms are continuing to receive requests to set up funds and since the introduction of the new unregulated regime last year, 37 structures have been established.

The chairman of the Jersey Funds Association, lawyer Richard Thomas, said: ‘These are difficult times, on both sides of the Atlantic. ‘What we are seeing globally is a dramatic decline in the amount invested in hedge funds.  The fact that Jersey was slightly behind in the hedge funds sector is probably in our favour.’

Mr Thomas (pictured) added that the property fund sector – until last year a boom area for Island firms – was now quite well down. ‘Some areas are static, but Eastern Europe, which was quite an expansion area a few years ago, is going through very difficult times and needing support,’ he said. ‘ That will have quite an adverse effect and will slow the pace of investment down.’