The value of Guernsey funds has
decreased by £5.8bn (2.8%) during the quarter to the end of
September primarily due to the performance of global markets.
The reduction over the three months
has taken the total value of funds under management and
administration in the Island to £201.4bn.
"These figures are expected
given the performance of the global markets during this three month
period," said Peter Niven, Chief Executive of Guernsey
"It must also be remembered
that the statistics are to the end of September and therefore
don't take into account the effect of further asset falls that
we have seen across the world during October. However, the positive
side of this is that I expect these reductions to have been
regained off the back of improving market conditions through to the
end of the year."
Statistics released today by the
Guernsey Financial Services Commission (GFSC) show that the value
of Guernsey domiciled closed-ended funds grew by £1.1bn
(1.3%) over the quarter to reach £85.9bn.
The value of Guernsey domiciled
open-ended funds fell by £8bn (10.8%) over the quarter to
£65.7bn. The decrease is primarily due to the adverse
performance of global markets but also reflects the fact that a
fund previously established in Guernsey has migrated to another
Administration functions for the
fund are still provided from Guernsey and therefore it is now
represented within the figures for non-Guernsey schemes.
Non-Guernsey schemes, for which some aspect of management and
administration is carried out in the Island, increased by
£1.1bn (2.1%) to leave their value at £49.8bn.
Mr Niven added: "There is still
a certain amount of new business coming through but clearly this is
at a lower level than in the last two or three years –
when we had record flows – because of the lack of
confidence in the wider markets. Investors certainly seem to be
waiting for further falls in asset values before they feel the time
is right to come back into the market. Therefore we are using this
as an opportunity to take stock and so make sure that we are in
pole position for when confidence returns and business levels
Since the inception of Qualifying
Investor Funds (QIFs) in February 2005, 210 QIFs have received
consent or approval from the GFSC – with five of those in
the third quarter of 2008.
On 1 February 2007, a registered
closed-ended fund regime was introduced. By the end of June 2008 a
total of 126 such funds had received consent from the GFSC, with 12
coming in the three months to the end of September 2008.
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.
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