However, speaking following the announcement, managing director of Abbey National Offshore, David Siddall explained that: 'Our decision to close Inscape Offshore (the group's Jersey-based investment service) and our trust operation does not reflect on the political or economic stability of Jersey, but is part of our wider strategic review.

Abbey National Offshore also announced that in addition to the closure of the Jersey operations on August 31, its representative offices in Dubai, Hong Kong, Gibraltar, Portugal, and Switzerland will also be closed. Local reprentation in Spain and the firm's mortgage service for expatriates looking to buy property in the Iberian peninsula and the UK will also be withdrawn, as of July 31. However, existing mortgages will be unaffected.

Mr Siddall went on to reveal that:

'The review was influenced by globally low interest rates, continuing poor investment markets and an ongoing commitment to drive down costs and increase efficiency. By concentrating on providing a range of offshore savings, deposit and money transmission accounts, our business is now closely aligned with Abbey National's focus on personal financial services.'

He concluded: 'We are already a popular choice for British expatriates and these strategic changes will ensure that we can continue to satisfy and serve our existing and new customers.'