Europe Seen As Biggest Threat To Guernsey Fund Industry

by Amanda Banks, Tax-News.com, London

06 June 2002

A Deloitte and Touche survey of offshore fund centres has revealed that European pressure on the UK Crown Dependencies is seen as the biggest threat to Guernsey's offshore fund industry, according to a report in the Guernsey Press and Star this week.

This follows UK Chancellor, Gordon Brown's announcement at Tuesday's Ecofin meeting in Luxembourg that both Jersey and Guernsey have agreed to exchange information on interest paid on the savings accounts of EU citizens.

Speaking to the newspaper about the survey, Deloitte and Touche Guernsey's banking and fund industry expert, John Clacy revealed that although there are fears that yet more pressure will be brought to bear on the Channel Island jurisdictions, Guernsey's reputation for adaptability has stood it in good stead in the past.

The Deloitte and Touche survey also revealed that the flexibility demonstrated by the Island's regulatory body, the Guernsey Financial Services Commission (GFSC), is a significant draw for industry players, with 80% of those surveyed dubbing the authority both proactive and constructive.

'Against this backdrop, more than 80% of fund administrators surveyed expect both income and profits to go up in the next three years,' Mr Clacy told the Guernsey Press.

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