The success of Guernsey's investment fund business has been
further endorsed by a significant move up the rankings of the Fund Domiciles.com Stability Index for
Guernsey was the highest placed jurisdiction of those showing
improvement, with a move up from sixth place in 2010 to third this
Luxembourg remains the most stable fund domicile, followed by
Malta in second position. Cayman was fourth and Gibraltar fifth,
with Ireland and Jersey in joint sixth as the latter fell three
places in what was effectively a trade of positions with
Peter Niven, the Chief Executive of Guernsey Finance, said:
"This is yet more welcome news for our funds industry. Coming
on top of a record high for funds under management and very strong
feedback from the Funds Forum event in London, this improved
ranking underlines the general positive buzz and optimism that we
are seeing around Guernsey's investment fund business at
present. It is a reflection on Guernsey's professional
practitioners and the infrastructure that has been established for
investment funds which is finding favour with fund
The FundDomiciles.Com rankings are based on a combination of
macroeconomic and fiscal data, as well as fund flow statistics.
The overall score includes a 50 per cent weighting for data that
could impact the financial stability and competitiveness of the
jurisdiction. Among the data taken into account was the strength of
Guernsey's finances, its overall fiscal position, GDP and
The other half of the score was based on the size and percentage
change in fund flow data; it has recently been announced that
Guernsey has seen the value of investment fund business grow by
£6.2 billion (2.4%) during the first quarter of this year, to
a new record high of £263.6bn – a rise of
£66.2bn. since March 2010.
FundDomiciles editor Simon Osborne said: "Many of the
specialist alternative funds that are attracted to a location like
Guernsey are performing strongly at the moment and if investors
continue to want to allocate to schemes that seek returns which are
uncorrelated to equity markets, then this domicile should continue
At the recent Guernsey Funds Forum event in the City of London
Jon Moulton, Chairman of private equity firm Better Capital, said:
"The thing that Guernsey has is a very good reputation; it
works very well and people are mostly very happy about running
things there. It's critical to maintain integrity over time. It
has got excellent regulation and is sensibly run. You can actually
talk to the regulator in marked contrast to some other
jurisdictions. It has reasonable costs, the fiscal structure is
sensible and the relationship with Europe, while difficult, is
currently in a good place. Guernsey needs to carry on doing what
it's doing into the future and it will prosper."
Many people are baffled by trusts, the purpose of which they don't fully comprehend. Some even regard them with suspicion, as tools of of opaque tax evasion strategies of a type favoured by wealthy individuals.
We were recently instructed by a Bank in relation to a regulatory matter. The Bank had made a suspicious activity report to the Financial Investigation Unit ("FIU") due to their concerns about the potential source of funds in an account.
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