In a firm warning, Jersey Financial Services Commission (JFSC) has said the island will not be a 'back door' to access the UK market, the FT has reported.

Martin Moloney, director general of the JFSC, warned in an interview with the FT that any attempt to exploit Jersey's relationship with the UK through "regulatory arbitrage" would not be successful.

"We would not want Jersey to be used by anyone to avoid the kind of protections, which rightly apply to investors in the UK," he said.

"We aim for equivalent of similar outcomes in terms of the level of protection that our regulatory regime provides, and we actively consider the impact that businesses here can have on investors in other jurisdictions."

The warning comes following Woodford's surprise slated return to the industry, in which he suggested a new firm would be based in Jersey, despite not having applied for authorisation from the island's regulator.

This had "created the very false impression that Jersey could be used as a back door to gain access to the UK market", according to Moloney, who added the JFSC had a "very close working relationship" with the FCA, which has already announced it would work closely with them on the proposed launch.

"Anyone who gets off the plane thinking that Jersey is a soft touch has wasted the price of the ticket.

"Jersey is not the place to come if you are trying to get around UK regulation, or any other regulation for that matter."

(First published by our sister title Investment Week)