4 November 2009
The Foot Report "rightly highlights the symbiotic relationship the UK economy enjoys
with the Crown Dependencies and overseas territories", says Joe Truelove, Head of Business
Development for Kleinwort Benson’s Corporate Clients Department, Guernsey.
Commissioned by the Chancellor of the Exchequer in December 2008, the Report seeks to identify the
opportunities and challenges generated by turmoil in global financial markets, and the subsequent impact
on the world economy, of the three Crown Dependencies (Guernsey, Isle of Man and Jersey) and six
Overseas Territories (Anguilla, Bermuda, British Virgin Islands, Cayman Islands, Gibraltar, Turks and
Caicos Islands).
Foot highlights that: "The Crown Dependencies provide a gateway to route funds to other financial
centres, including London; and they also service the financial needs of many UK nationals living abroad.
"The Report recognises the very significant contribution these jurisdictions make to the UK economy,"
said Truelove.
"It notes that the UK has consistently been the net recipient of funds flowing from the nine jurisdictions - with
a large regular inflow from the Crown Dependencies - and that substantial net fees are also earned from the
provision out of the UK of legal, accounting and other professional services to these jurisdictions."
This is backed up by the Association of Investment Companies (AIC) estimate – detailed in the Report -
that 108 companies, which the AIC regarded as being investment companies domiciled in the Channel
Islands and Isle of Man, paid management fees into the UK of over £300 million a year in recent years.
Truelove explains: "Fund managers use Guernsey and Jersey to base their investment funds to produce
gross investment returns - often for tax exempt investors (e.g. pension funds). The Report notes that whilst
investor protection is required, the UK itself is seen as a complex regulatory jurisdiction. The Channel
Islands, however, are familiar to and well respected by investors, with a long track record and significant
expertise and infrastructure to service the investment management industry. This is why they remain the
jurisdictions of choice for many London-listed investment companies and private equity funds."
News Release
Kleinwort Benson is the brand name for Kleinwort Benson (Channel Islands) Limited which is regulated by the Jersey Financial Services
Commission and its Guernsey branch is regulated by The Guernsey Financial Services Commission. It is also authorised and regulated by the UK
Financial Services Authority in respect of UK regulated mortgage activities, and its firm reference number is 310344. Copies of the latest audited
accounts are available for inspection on request. Registered in Jersey, Company Number 1215. Registered Office Kleinwort Benson House Wests
Centre St Helier Jersey Channel Islands JE4 8PQ. Telephone calls may be recorded.
Overall Foot appears to view both Guernsey and Jersey in a positive light, as "having a good story to tell"
and as "being among the best performers", but Kleinwort Benson notes his warning that "there is no room
for complacency." Both islands are in the process of introducing corporation tax.
"Overall Foot appears to have produced a thoroughly researched and comprehensive report, which
reflects extremely well on Guernsey and Jersey in particular," said Mr Truelove.
- Ends -
For further information contact:
Kleinwort Benson
Rachel Sauvage +44 (0) 1481 752581
Rachel Butler +44 (0) 20 3207 7239
Phoenix Financial PR
Gordon Puckey +44 (0) 20 7947 2856