Guernsey Expects Hong Kong Accord To Boost Far Eastern Business

by Jason Gorringe, Tax-News.com, London

20 June 2005

Following the recent signing of a Letter of Intent between the Guernsey Financial Services Commission and the Hong Kong Securities and Futures Commission, the Channel Island jurisdiction is reportedly poised for an increase in fund business with the Far East.

The Letter of Intent was the first to be signed by the SFC with a regulatory body outside Asia, and provides a formal basis for strengthening regulatory cooperation, particularly with regard to the supervision of investment products and cross-border trading. According to the FSC, this is intended to facilitate the development of deeper and broader investment markets through the cross-border trading of investment products that are acceptable to both authorities.

Speaking last week, Peter Niven, Chief Executive of GuernseyFinance, predicted that this strengthening of Guernsey's relationship with the Far East will create new opportunities for business.

"It provides a great opportunity for the Guernsey funds industry to market more of their products into Hong Kong," he said. "Guernsey firms are already marketing three Guernsey umbrella funds, comprising 33 different classes and authorised by the HKSFC, into the territory and this agreement between our two jurisdictions paves the way for more business flows, which will certainly benefit the island."

The GuernseyFinance boss went on to add:

"It cements the very strong links that have been fostered between the two organisations over many years. The agreement is an important step in deepening this relationship and will enable firms in Guernsey, who wish to market their products to local residents in Hong Kong, to be much better placed to do so."

Recommended