Major Study Completed On Jersey Finance Industry's Future

by Jason Gorringe, Tax-News.com, London

19 May 2008

A major six month study into the future of the Island’s Finance Industry has been completed by a team from the London Business School.

The research, entitled ‘the Jersey Finance Strategy Project – Future of Finance 2015’, was commissioned by the Economic Development Minister and Jersey Finance Limited, to assist the Finance Industry to make informed decisions about its strategies for growth in the long term.

Its detailed findings include the following broad conclusions:

• Jersey will need to significantly enhance its promotional efforts if its voice is to be heard in an increasingly competitive global arena. Greater resources will need to be directed at London and in India, China and Eastern Europe which the Study identifies as being the regions in the world where Jersey will acquire most new business long term.
• A sharper focus is needed on skills development in Jersey including providing more international experience for its workforce, and further investment in training and education facilities for Finance Industry employees, if the Island is not to fall behind competitors.
• Whilst the quality of the Island’s regulation is highly regarded, Jersey’s regulatory framework would be even more attractive to investors if it was more market focused.

Geoff Cook, Chief Executive, Jersey Finance Limited, commented :

"The research has pinpointed that Jersey is a highly ranked finance centre but it also acknowledges that the competitive landscape is changing rapidly. There are 42 international finance centres included on the International Monetary Fund assessment programme, an indication of the competitive nature of global financial services."

He added that the next step was a recommendation that the Island forms a new, informal tripartite body comprising of representatives from the Government, the Industry and the Regulator, who would assess the detailed findings in the report and consider appropriate actions.

He explained:

"We chose the London Business School for the study because they are one of the top five such establishments in the world with a renowned research faculty. The research team has provided us with a comprehensive analysis of the current and future market for offshore financial services. In compiling the report, they have spoken to hundreds of finance professionals in Jersey, London, Continental Europe, America, the Gulf and the Far East."

Cook concluded that:

"The findings include some valuable comparisons between Jersey and its competitors, together with a review of global market trends in financial services and these will now need closer evaluation by Industry, Government and the Regulator, prior to making recommendations for the Island’s future strategy."

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