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."
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
Phoenix
Financial PR
Gordon Puckey
+44 (0) 20 7947 2856
Notes to Editors:
1. Report of the Independent Review of British Offshore Financial
Centres
The Report
was released on 29 October 2009 and covers all of the sectors of the finance industries of all nine jurisdictions (
Guernsey, Isle of Man, Jersey, Anguilla, Bermuda, British Virgin Islands, Cayman Islands, Gibraltar, Turks and Caicos Islands).
The Report
specifically assesses financial flows, the identification and management of economic risks, the role of tax in sustaining business models, effective regulation, financial sector crisis management and fighting financial crime.
2. About Kleinwort Benson
Kleinwort Benson is one of the most historic names in UK banking with roots dating back to the 1850s. Kleinwort Benson is the brand name of Kleinwort Benson Private Bank Limited (established in 1962 from the merger of Kleinwort Sons & Co and Robert Benson & Co) and its subsidiaries.
It operates from principal offices in London and the Channel Islands with regional offices
in Birmingham, Edinburgh, Cambridge, Leeds Manchester, and Newbury.