Guernsey: Focusing on a quality service

Last Updated: 8 July 2010
Article by Stuart Tyler

Most Read Contributor in Guernsey, September 2016

Originally published in HFM Week, Guernsey Special Report, June 2010

Stuart Tyler of Babbé explains why Guernsey's reputation means he has confidence that the island's market will grow in the next three quarters.

The marketing message that Guernsey has been putting forward over the past few years, alongside its structural development, has all been geared towards the jurisdiction's focus on quality. There is a strong message being relayed from Guernsey to the fund industry as a whole that the island is a well-reputed and well-regulated jurisdiction and, while that requires a commitment to do business, the quality of the result is worthwhile.

"Guernsey is known as a financial centre rather than an offshore tax haven," says Stuart Tyler, of Babbé Legal.

In this sense, Guernsey is in an excellent place to ensure that it can respond to the changes in the fund industry. As the market evolves into a new phase, where investor demands are far greater in terms of transparency and reporting, the jurisdiction is home to many qualities which investors, and consequently managers, are looking for to secure a long-term future in the industry.

In terms of the hedge fund industry in Guernsey in 2010, it is difficult to judge how the rest of the year will play out. While the information is coming through, for example, asset value has grown by 7.2% in the first quarter of the year, pinpointing and allocating where that growth has come from exactly is a harder challenge.

The move of Bluecrest's management business to Guernsey could well indicate a sign of things to come. The reasons for this move were stated to be a response to increasing UK corporate and personal tax.

Tyler's view is that an increase in migration is a distinct but not definite possibility. "I suspect we will see more migration of hedge funds to Guernsey," he says. "As to when that happens, we cannot be certain."

Investor security

In terms of new regulations, there has been nothing new on the horizon since the financial crisis. That is not to say that the jurisdiction has not taken note of the problems. It is evident that on a deeper analysis, the reason for the lack of new regulation is that the jurisdiction had already successfully anticipated the regulatory requirements for the future.

The emphasis on quality across Guernsey over recent years has seen it develop ahead of its competitors, and this need for a quality market meant that Guernsey had already addressed issues that many jurisdictions have been, or are now facing, in terms of investor transparency and security through regulation.

"I think the general feeling at the moment is that people are comfortable with the regime that already existed before the crisis," says Tyler. "It is for this reason that there have been no regulatory changes since the inception of the crisis, and there are no changes in the foreseeable future."

As a result of this strong underpinning, hedge fund managers are keen to flock to Guernsey under the banner of its well-reputed offering.

"You don't come to Guernsey if you want to do something quick, cheap and nasty," says Tyler. "You come to Guernsey because you are creating a product that people will be able to look at while taking comfort in knowing which jurisdiction it is under."

Tyler's view is that across Europe, investors and managers alike have a strong belief in the security of the jurisdiction and are aware of its stability. This comes as welcome news, especially with regard to the crisis, and can only stand Europe, and therefore Guernsey, in good stead for the future after the recent turmoil has settled.

"All the European jurisdictions are stable," says Tyler. "What this stability gives people is the comfort that they are somewhere where they know what the regulations are, and they know how the regulations work. Essentially, the gaps have been taken out of the structure."

The future of Guernsey

The year ahead for the island is entirely dependent on the movement of the market, something which is out of Guernsey's hands. There have been a limited number of new funds launching. Where there has been an increase in asset values, this has largely been the result of existing funds selling to further investors, rather than new structures being put in place.

"Guernsey's future depends on the general economics improving," according to Tyler. "However, in terms of the regulatory needs of the global hedge fund industry, which can be assimilated generally to investor comfort, Guernsey is excelling."

Babbé has experienced a great increase in enquiries from hedge fund managers globally in the past few months. As a result, Babbé has been making inroads with respect to non-Guernsey funds and their management in the jurisdiction, a growing area for hedge funds.

"We have seen numerous enquiries and acted in respect to non-Guernsey funds that are being managed here and funds migrating to Guernsey from other jurisdictions," says Tyler. "That's because people like the integrity of the locally regulated managers, regardless of the fact that they have not actually located the fund here."

He adds: "On the back of that, I feel some confidence in the market growing in the next three quarters. I am actually going to recruit senior staff to be ready for that, so that's a testimony to the way we see the immediate market growing in the future."


Babbé is a leading Guernsey law firm with a well-established international reputation for providing high-quality legal services in the offshore finance sector. The firm aims to provide a better service to clients than any other law firm on the island and in a demanding and challenging business environment; clients value the firm's dynamic ethos and focus on directness and efficiency, combined with a strong tradition of personal service. Babbé fields a team of exceptionally experienced lawyers offering a range of specialist expertise including funds, focusing on understanding and meeting the commercial objectives of individual clients

For more information about Guernsey's finance industry please visit

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Mondaq Advice Centre (MACs)
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.