Jersey Finance Industry Grows In Q3

by Jason Gorringe, Tax-News.com, London

24 December 2010

Jersey Finance – the promotional agency on behalf of the island’s financial services industry – has reported that the leading sectors of Jersey’s finance industry continued to hold up well and show growth in the third quarter of 2010.

Banking deposits registered a small rise and the value of the fund administration business has also increased during a period in which a further 40 new funds were established.

The statistics collated and prepared by the Jersey Financial Services Commission for the three month period ending September 30, 2010, also show that the trend for increasing levels of banking deposits to originate from the emerging centres in the Middle East and Far East continues.

The headline figures from the statistics are as follows:

• Banking deposits increased nominally, by 0.16%, during the third quarter of 2010 from GBP166.9bn to GBP167.2bn;
• The Net Asset Value of funds under administration increased by GBP3bn (1.70%) from GBP175.9bn to GBP178.9bn during the third quarter of 2010. The total number of funds increased by 40 from 1,287 to 1,327;
• The total number of unregulated funds increased by 18 to 105 during the third quarter of 2010;
• The value of funds under investment management decreased by 2.8% compared to the previous quarter from GBP20.2bn to GBP19.6bn; and,
• The total number of live companies on the register increased by 64 from 33,570 to 33,634 during the third quarter of 2010.

Geoff Cook, Chief Executive of Jersey Finance, commented:

‘’2010 has been a particularly challenging year and it is encouraging that the majority of our key sectors are reporting growth. Jersey’s position as a leading and influential international finance centre remains and we continue to enjoy the confidence of investors worldwide.”

“An analysis of the residence of our depositors shows that a high percentage of deposits originate from the UK and European non-EU countries but it also shows that our finance industry is building a strong foothold in other key markets such as the Middle East and the Far East, together representing 18% of the deposits.”

“Given the important potential offered by India and the Middle East, we will open a representative office in Abu Dhabi in 2011, which will generate important business opportunities for all key sectors of Jersey’s finance industry.”

“We are continuing to work with government on a number of inward investment initiatives which we believe will strengthen Jersey’s position as a preferred centre for fund managers wishing to establish a physical presence in Jersey and an attractive domicile for alternative funds and fund administration services. With such important initiatives running, we are very confident we can build upon our excellent reputation in 2011 and beyond.”

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