Jersey Investment Continues Despite OECD Accusations

Robert Lee, Tax-news.com, London

06 March 2001

The Jersey Financial Services Commission (FSC) has just released its quartely figures for the period 1 October 2000 to 31 December 2000, and the overwhelming trend they demonstrate is the growth in new investment into Jersey, despite falling markets and the OECD's harmful tax competition initiative, which has given many offshore financial centres, including Jersey, a bad press.

Whilst the number of funds has fallen by 3 to 321, as of 31 Dec 2000, the value of funds stood at £90.9bn, representing a increase of 26.9% compared to the same quarter last year. The Financial Services Commission said that the large majority of the increase was attributable to new money from investors, adding that the figures must be encouraging for the funds industry generally and represent a vote of confidence by investors in the industry and Jersey itself.

The total of funds under investment management (class B of the Investment Business Law ) now stands at £33bn, a slight drop since the FSC's last report, largely due to one major institution having to re-allocate assets. The total number of customers of investment managers also fell slightly in the quarter - from 21,996 on 1 October 2000 to 21,798 as at 31 December 2000.

Commenting on the quarterly statistics, director general of the FSC, Richard Pratt, said: 'These figures show that the Island continues to attract good quality business. There have been substantial regulatory changes and international attention on the Island. Nevertheless all the figures show encouraging movement in the right direction.'

Mr Pratt also told the Jersey press: 'This is good, steady growth at a time when there is some uncertainty in the world economy. The 6.9 per cent increase in existing funds has happened at a time when there has been an overall fall in some markets. We have seen a continuing growth in new investment into Jersey which has offset the weakness in the market, and despite possible uncertainty because of international attention as a result of the OECD and other issues.'

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