GIBA Chairman Optimistic For Future Of Guernsey's Finance Centre

by Robert Lee, Tax-News.com, London

16 April 2003

The new chairman of the Guernsey International Business Association, Robin Fuller, has given an upbeat assessment of the finance industry's outlook and seems confident that the island will remain prosperous, according to a Guernsey Press and Star report.

Whilst Fuller conceded that the economic downturn has badly affected some sectors of the finance industry, he noted strong growth in other sectors such as captive insurance and funds, and stated that this was reason enough to remain optimistic.

On the impending EU Savings Tax Directive, Mr Fuller observed that until a full political agreement is reached by the member states, there is little that financial institutions can do in terms of preparation for the new regulations. However, he pointed out that with the bulk of negotiations with the EU and UK on tax harmonisation more or less complete, the island can now concentrate on issues of corporate governance, and begin the process of appointing an ombudsman.

The new GIBA chairman stated that the increased interest in Guernsey from the UK and EU authorities is a result of the jurisdiction's success as a financial centre, and that the island must accept this as the price of that success.

Although Fuller estimated that the finance industry had shed about 300 jobs in the last year, he reiterated his confidence in the industry's future.

"One of our main advantages is our size, which means we can react to change quickly, and the relationship between industry, the FSC and A and F," Mr Fuller told the GPS, continuing: "Our group strength is our diversification and there is something positive in each of the four sectors."

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