Private offshore banking 'needs change'

The private offshore banking sector needs to "adapt or die" in the current climate of "hyper-transparency", according to one columnist and author.

Matthew Lynn of Bloomberg says that the previous model of extreme secrecy and confidentiality no longer exists in the wake of the news that a former banker with Julius Baer Group has given information on some of its biggest clients to WikiLeaks.

As such, private offshore banking organisations must change the way in which they do business by informing clients that their financial details may be published if they fall into the wrong hands and creating tax havens by using mobile technology to work in another country, he claims.

"The point is that financial centres need to be low-tax hubs, rather than secrecy hubs," the writer remarks.

Recent figures from the Investment Management Association showed that net retail sales of overseas domiciled funds nearly doubled in November compared with the previous month, reaching a total of £201 million.

Some £25.7 billion of funds were under management during the month - the highest figure on record.ADNFCR-2318-ID-800365489-ADNFCR