Channel Islands To Enhance Value To UK, EU

by Jason Gorringe, Tax-News.com, London

20 September 2010

The Channel Islands’ economic value to the United Kingdom and European Union will be bolstered by plans to develop strong business relationships with eastern emerging markets such as China and India, Colin Powell, Adviser on International Affairs to the States of Jersey, said at the Channel Islands Stock Exchange International Business Summit.

In his keynote address, Powell gave an upbeat assessment of the prospects for international finance centres (IFCs), such as Jersey and Guernsey, and said that there were particularly good business opportunities in successfully tapping into the growth economies of China and India.

He told those at the seminar:

“Tax Information Exchange Agreements are being negotiated with India, China, Japan, Korea and Indonesia, which are seen as an important first step in the strengthening of political and business relationships. Wealth creation in these and other jurisdictions, allied to a continued interest in European markets on the part of wealth generators, should combine to create a fertile environment, which the Islands are well-placed to take advantage. The islands’ expertise in specialist funds, in special purpose vehicles, and in wealth protection should be of particular appeal in these markets."

He said that not only would Far Eastern business give the islands’ economies greater strength, but also by attracting more funds that are up-streamed to EU money markets, through banks and investment funds, the islands can enhance their value to the EU, and thereby their position in negotiations.

“The islands offer services of appeal to foreign clients of London and much business is introduced through City law firms and other agencies. In return, the funds attracted to the islands from all over the world are up-streamed to the City thereby helping to fill the liquidity gap for many London-based banks and provide funds for investment."

Powell was one of 18 practitioners from different sectors of the international financial services industry who spoke at the second CISX summit. Staged this year in Jersey, it attracted more than 250 delegates and was designed to showcase the financial services of the Channel Islands while focusing on some of the major issues which impact upon the global industry.

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