Guernsey Fund Administrators Warned To Adapt To New Technology

by Jason Gorringe, Tax-News.com, London

19 March 2002

Guernsey's fund administration sector must adapt to technological change or face international relegation, according to one local fund administrator.

Speaking at a recent high level seminar on the subject, deputy managing director of Close Fund Services Ltd, Mike de Haaff observed that technological advances are changing the face of financial services provision:

'These are testing times for fund administrators in Guernsey, he told an audience composed of fund managers, intermediaries, and investors, warning that: 'Failure to seize the opportunities that new technology provides could result in a loss of business, relegation to niche status or even total business collapse.'

The CFSL deputy managing director revealed that advances in the provision of integrated IT solutions and e-processing may now, in many cases, mean that paper can be virtually eliminated from many back office procedures, a development which he suggested would change the shape of the financial services sector, and inform the type and number of staff required by fund administrators in the future.

Despite admonishing the fund administration sector to move with the times, however, Mr de Haaf stressed that Guernsey is well positioned to benefit from the technological advances, as demand for financial services in the Channel Island jurisdiction remains strong.

This was backed up by a recent survey conducted by Deloitte and Touche, which found that 80% of fund administrators in Jersey, Guernsey, Dublin, the Isle of Man, and Luxembourg, are predicting growth for the sector over the coming years.

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