The center is known for managing high-net worth (HNWI peoples assets, having lucrative financial instruments, and for being an convenient place to set up a business. In fact, a study by The Banker magazine published in September 2012 ranked Guernsey second in a list of the world specialized finance centers, while in the same month, the twelfth Global Financial Centers Index (GFCI) ranked Guernsey as number two in the list of ffshore finance centers. There is no doubt that Guernsey financial center has reached the prestige of its competitors in the Caribbean islands and Cayman Islands.
Asset Management.
Guernsey is known for its expertise in managing assets. Currently they are around 104 asset management firms that have a total of £87.7bn gross assets under management. The island has a broad spectrum of investment management providers, who come in forms of subsidiaries of large multinational companies to smaller boutiques. These firms have a wide range of asset management and stockbroking solution to corporate and private clients. The island also has many independent investment consultants who measure and monitor investment performance. This helps make the island more competitive and outperform other offshore financial centers.
Why choose Guernsey financial products?
The island of Guernsey has over fifty years of investment fund experience, so it is a good location to conduct investment fund business. Currently the island has many investment businesses, including investment advisors, stock brokers, and more than fifty fund mangers, who have a range of products and services for both institutional investors and retail from general products to more customized.
Many companies in Guernsey have a great deal of experience in dealing with alternative investments. The island experts have extensive experience in dealing with hedge funds, private equities and properties, and they are even gaining a reputation for their skills in handing more esoteric investments such as fine wine, art and timber.
The island also has expertise in using a wide range of investment instruments including limited partnerships, ICCs, PCCs and unit trust. There are also a large number of intermediaries who are able to provide advice on suitable investment vehicles and products.
Business Friendly with few taxes.
The Island of Guernsey is one of the best places to set up a business not only because the country has a solid rule of law and that the economy and political system is stable, but also because of its tax system.
The island is free from capital gains, sales, corporation, inheritance and withholding taxes and there is no VAT or exchange control. The lack of taxes is major incentives for companies to set up shop at Guernsey.
Guernsey Island is well known for its highly trained work force. It is an English speaking country, but they are also knowledge and trained to deal with other major European countries, such as England, France and Germany. Not only that, but they are also experienced in dealing with Asian clientsi. Guernsey Island has a small number of Mandarin speakers working within the finance industry locally, but there are a number of Guernsey firms that have registered offices in China that can use this connection to provide a service to those clients who cannot write or speak in a European language. Wealth managers Louvre Group, Nerine Trust Company and Newhaven Trust have established offices in Hong Kong, while Richmond Fiduciary Group has recently opened its own representative office in Shanghai. Law firm Ogier has offices in Hong Kong and Shanghai, whereas Mourant Ozannes is now established in Hong Kong.
Furthermore, fund administrator International Administration Group (IAG) has established an office in Hong Kong and is in the process of opening another in Singapore. IAG has also established a partnership with Exceedor in Shanghai which allows it to provide onshore renminbi (RMB) denominated private equity fund administration services in China.
In an interview with Fiona Le Poidevin, the CEO of Guernsey Finance, she said uernsey is able to provide Chinese clients with a full service proposition in a tax-neutral environment with close proximity and strong links to the City of London. In Guernsey, there is no withholding tax for dividends, nor capital gains tax or inheritance tax; there is no income tax levied on on-Guernsey income generated from trusts whose beneficiaries include no Guernsey residents. Excluding some regulated financial services business, the standard rate of corporate income tax is 0%. etting up a business in Guernsey is cheap, and the island gives the business access to other major European economies.
Guernsey protects your confidentiality, but it not a tax haven.
Guernsey has many tools and companies to protect a clients privacy, but the island does not tolerate accepting illegal funds or breaking the country or OECD rules. Poidevin said Guernsey would always offer its client confidentiality through the use of estate planning vehicles such as trusts and companies, but it will not condone secrecy and allow wealthy people to evade tax by illegally withholding information. These are attributes which have gained added significance in the wake of the onset of the global financial crisis and provide extra comfort to both clients and their advisers. The island still protects its client secrecy, but they must follow the rules of the land and that of the international community. This not only gives the clients comfort but also the companies who help them.
The Guernsey government has also been working with the Chinese central banking regulator to ensure that people play by the rules. This can be seen at the end of 20120 when the Guernsey Government signed a Tax Information Exchange Agreement with the Chinese central government tax authorities. But its important to keep in mind that the Guernsey Government will only give information to the Chinese regulators for executional reasons that have evidence behind them. If the Chinese regulators want the Guernsey government to give information to them, Guernsey requires them to give a definitive reason why, the information that relates to the investigation or tax matters. In fact, recently, the Guernsey Financial Services Commission has signed a statement of cooperation with the Chinese central banking regulator, the China Banking Regulatory Commission (CBRC).
Guernsey government does not condone illegal activities with Chinese investors, but with everybody. The CEO of Guernsey finance pointed out a few reports published by respected international organizations to prove this and which demonstrate the safety and enforcement of the system. In January 2011, the International Monetary Fund (IMF) published six evaluation reports, which commended Guernsey high standards of financial regulation, supervision and stability along with our robust criminal justice framework. Later that same month, the Organization for Economic Co-operation and Development (OECD) Global Forum built on the fact that we were among the first wave jurisdictions placed on its hite list (at the G20 summit in London, April 2009) by endorsing our continued commitment to tax transparency and exchange of information. In addition, a Financial Stability Board (FSB) report prepared for the G20 meeting in Cannes in November 2011 recognized Guernsey as within the top tier of jurisdictions adopting international standards and thereby demonstrating strong commitment to financial stability.
Guernsey financial center een on winning over Chinese investment.
The CEO of Guernsey Finance, Fiona Le Poidevin, said that Guernsey companies are very keeo on seeing more Chinese investment and business owners coming to the country to build their wealth.
We are keen to encourage a number of Chinese banks to consider setting up in the island. The rationale for a Chinese bank setting up in Guernsey would be to assist the rapidly growing number of their wealthy expatriate clients and institutions with their international banking requirements, said Poidevin.
Poidevin pointed out that many Guernsey companies and the government has established relationships with Chinese banks and is encouraging cooperation between them. Poidevin said although some large Chinese banks have set up overseas branches, the majority of them are still concentrated on commercial banking business rather than private banking business, whereas many Chinese clients need a channel for overseas investment. We are particularly optimistic about the prospect of Guernsey firms providing asset management services to Chinese private banking businesses. Finding a way to assist Chinese banks in their private wealth management is a major opportunity for Guernsey has many Chinese investors are looking for a way to invest their money abroad.
