Jersey Banking Sector Unaffected By EU Savings Tax Directive

by Jason Gorringe, Tax-News.com, London

13 December 2005

The third quarter statistics for Jersey’s Finance Industry show that funds business continues to reach new record highs, whilst the banking sector has also grown and, to date, does not appear to have been adversely affected by the introduction of the European Savings Tax Directive on 1st July 2005, according to Jersey Finance.

The key highlights from the findings for the period ended 30th September 2005 are as follows:

• Bank deposits increased by GBP6.6 billion (3.83%) to GBP179.6 billion during the 3rd quarter of 2005.
• The Net Asset Value of funds under administration in Jersey grew by GBP9.3 billion (8.3%) during the quarter to reach a record high of GBP121.9 billion.
• The number of Expert Funds established in Jersey increased from 79 to 98.
• The total value of funds under investment management increased by 16.26% to GBP42.9 billion during the quarter.

"These latest quarterly statistics provide further confirmation that Jersey’s Finance Industry is undergoing a period of renewed confidence and growth," commented Phil Austin, Chief Executive, Jersey Finance Limited.

Mr Austin went on to observe that:

"It is particularly encouraging to note the continued growth in bank deposits, notwithstanding the introduction of the EU Savings Tax Directive on 1st July 2005. However it is clearly still early days as far as this Directive is concerned.

"Not only has the funds sector enjoyed another buoyant quarter, but year on year, the Net Asset Value of funds in Jersey has risen by almost 26% to reach a new record high of GBP121.9 billion. The more detailed analyses confirms that this growth is largely being driven by the alternative investment classes, including property, private equity and hedge funds, many of which have been established as Expert Funds.

"The growth in these specialist areas reflects the clear commitment of the Island’s government and regulatory authorities to support the Industry’s drive to establish Jersey as the European domicile of choice for alternative investment."

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