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indings from the 21st edition of the Guernsey Fund<br />
Report from independent fund research company<br />
Monterey Insight reveal the market shares of all<br />
service providers in Guernsey’s funds industry.<br />
For fund administration services of domiciled and<br />
non-domiciled funds, Northern Trust remains the largest<br />
by total net assets ($63.8bn), with Ipes ($45.5bn) and Apax<br />
Partners ($31.7bn) ranked second and third. For funds under<br />
custody services of domiciled and non-domiciled funds, Northern Trust also<br />
maintained its lead position with $20.5bn. Kleinwort Benson ($9.4bn) stayed<br />
in second position ahead of BNP Paribas Securities Services with $6.3bn.<br />
Of the legal advisers, Carey Olsen advised 724 funds, followed by Mourant<br />
Ozannes with 264 and Ogier with 120. For auditors, PwC was auditing 350<br />
funds at the end of the period, ahead of KPMG with 343 funds. Among fund<br />
management companies, the largest fund promoter of Guernsey-domiciled<br />
schemes was Apax Partners ($32.4bn), followed by Partners Group and EQT<br />
Partners (with $23.5bn and $18.5bn respectively).<br />
“The report shows a fall in total assets for the first time in five years,” said<br />
Monterey Insight MD Karine Pacary, adding: “Guernsey continues to attract<br />
business: 106 new sub funds were launched (domiciled and non-domiciled),<br />
71 serviced funds were launched (including 48 new Guernsey schemes) and<br />
15 new promoters have chosen Guernsey to establish their funds.” n<br />
Guernsey Finance’s China Representative, Wendy Weng, who is<br />
based in Shanghai, will use the office to carry out further<br />
promotional activities concentrated on the wider south-east Asia<br />
market. It will also be utilised by the Guernsey Financial<br />
Services Commission to provide regulatory advice to<br />
those in the region who might be considering<br />
Guernsey-specific ventures.<br />
The central location at Three Pacific Place in<br />
Admiralty ensures Guernsey Finance is well<br />
positioned to meet Hong Kong-based<br />
practitioners and others from Asia.<br />
The office is expected to be operational<br />
during the first quarter of 2016. A formal<br />
launch event and a Guernsey-hosted masterclass<br />
is scheduled to take place in Hong Kong during<br />
the first week of March. n<br />
Countering Financial Crime and Terrorist<br />
Financing, on the use of technology in the<br />
customer due diligence process.<br />
The changes to the rules and guidance<br />
in the Handbooks provide for the use of<br />
technologies such as digital signatures and<br />
electronic verification in the client take-on<br />
process and when due diligence<br />
documentation has to be updated, including<br />
where this technology is delivered through<br />
the internet or by tablet and smartphone<br />
applications.<br />
Each annex encompasses new rules<br />
stipulating that a firm must understand<br />
this technology if it is to use it and that it<br />
has evaluated that its use will result in<br />
compliance with the relevant regulatory<br />
requirements. The revisions to existing<br />
rules are intended to provide positive<br />
affirmation that new technologies have a<br />
part in this important process.<br />
The GFSC hopes that these changes<br />
will give firms the confidence to use new<br />
technologies. It doesn’t require firms to<br />
notify the Commission that they intend to<br />
use new technology. However, it will<br />
monitor take-up through the disclosures<br />
firms are asked to make in the annual<br />
financial crime risk return.<br />
“Guernsey is the first offshore<br />
jurisdiction to introduce such guidance. The<br />
GFSC should be congratulated in listening<br />
to industry and recognising that regulated<br />
businesses can introduce smart technology<br />
while continuing to apply the same<br />
rigorous standards the island has based its<br />
reputation on,” said Dominique Carpentier,<br />
Director at KYCme (Guernsey). n<br />
68 January/february 2016 www.blglobal.co.uk<br />
Collated by the Jersey Financial Services<br />
Commission (JFSC) for the quarter to September 2015,<br />
the statistics show the net asset value of regulated<br />
funds under administration in Jersey increased to<br />
£218.8bn, the third highest level since December 2008<br />
and 6.5 per cent up on the September 2014 figure.<br />
Within the funds sector, alternative asset classes<br />
continued to perform well, with total alternatives<br />
business, including hedge, private equity, real estate and<br />
infrastructure funds, growing by 11.5 per cent year-onyear,<br />
and real estate and private equity values both<br />
increasing by four per cent on the quarter.<br />
The total number of regulated collective investment<br />
funds increased by 13 from 1,298 to 1,311 – there<br />
were also 126 active unregulated funds<br />
The banking sector displayed relative resilience<br />
despite ongoing global pressures in the quarter, with<br />
the total value of deposits in Jersey banking institutions<br />
falling by about one per cent to £131.8bn.<br />
Meanwhile, the corporate market was very active,<br />
with 717 company incorporations during the quarter –<br />
the second highest quarterly rate of incorporation in<br />
seven years. There are now 33,739 live companies on<br />
the register, the highest total figure since June 2009. n<br />
ollowing the enactment of the Aircraft<br />
Registration (Jersey) Law 2014,<br />
Jersey’s first aircraft registry became<br />
indings from independent fund research<br />
company Monterey Insight, released at<br />
the end of November 2015, reveal the<br />
market shares of all service providers in<br />
Jersey’s fund industry to the end of June 2015.<br />
For fund administration services across<br />
domiciled and non-domiciled funds, State Street<br />
remained at the top of the table with $50.2bn in assets, followed<br />
by Aztec Group with $44.3bn and Saltgate with $33.4bn.<br />
Again, for domiciled and non-domiciled funds, BNP Paribas<br />
maintained its top position as the largest custodian, with $30.3bn<br />
in assets. JP Morgan, with $13.7bn, climbed to second (up from<br />
fourth last year), and SG Hambros Trust ranked third with $10bn.<br />
Among legal advisers, Mourant Ozannes remained in top spot,<br />
advising on 817 funds, followed by Carey Olsen with 479 and<br />
Ogier with 328. PwC is the largest auditor, with 472 funds, ahead<br />
of KPMG (259) and EY (172). Among fund managers, BlackRock<br />
Financial Management took the lead of Jersey domiciled schemes<br />
with $16.1bn of assets, followed by CVC Capital Partners<br />
($15.6bn) and ETF Securities ($13.6bn).<br />
“Jersey had a rather stable year in terms of total growth of<br />
assets, and actually showed a slight increase in the number of<br />
newly launched funds and new business coming to the island,” said<br />
Karine Pacary, Managing Director of Monterey Insight.<br />
“Additionally, in excess of 30 new promoters have chosen Jersey<br />
to establish their funds. Jersey continues to attract new investment<br />
and is regarded as a specialist in private equity funds, and is also<br />
competitive in alternative funds and real estate funds.” n<br />
● Neutral nationality registration prefix<br />
ZJ- followed by three characters of choice<br />
● A competitive Scheme of Charges.<br />
operational in November.<br />
The Jersey Aircraft Registry (JAR),<br />
Minister for Economic Development, Senator<br />
which will focus on registering new or Lyndon Farnham, said: “The Jersey Aircraft<br />
nearly new high-value private and corporate Registry… will enable local businesses to<br />
aircraft, registered its first aircraft, a private broaden their offerings, which already<br />
jet. JAR will offer:<br />
includes the registration of companies, ships<br />
● Registration of private and corporate and other security interests. Revenue will be<br />
aircraft<br />
created through the fees charged by the<br />
● Registration of commercial aircraft engine Registry, and we hope to see new jobs created<br />
mortgages<br />
in financial, fiduciary and legal services.<br />
● An online registration system, available 24 “There is also a longer-term goal of<br />
hours a day (to be launched in Q3 2016) creating roles in technical positions, as we see<br />
● A safe and comprehensive regulatory maintenance and management organisations<br />
framework<br />
relocating to Jersey.” n<br />
70 January/february 2016 www.blglobal.co.uk<br />
Contents<br />
INSIDE<br />
<strong>BL</strong>guernsey<br />
Monterey Insight reveals<br />
market share of funds<br />
F<br />
Guernsey Finance to open<br />
Hong Kong office<br />
uernsey Finance is to open a representative office in Hong<br />
Kong in the first quarter of this year.<br />
G The office will be the promotional agency’s second overseas<br />
outpost, in addition to its Shanghai office, which opened in 2008.<br />
GFSC issues<br />
guidance on<br />
electronic CDD<br />
Guernsey Financial Services<br />
Commission has issued annexes to<br />
Tthe Handbooks for Financial Services<br />
Businesses and Prescribed Businesses on<br />
68 bl guernsey<br />
The latest financial<br />
and business news<br />
and views from<br />
the bailiwick<br />
<strong>BL</strong>MAGAZINE<br />
<strong>BL</strong> is published six times a year<br />
by Chameleon Group<br />
+44 1534 615886<br />
www.blglobal.co.uk<br />
CEO, CHAMELEON GROUP<br />
Carl Methven<br />
carl.methven@blglobal.co.uk<br />
EDITOR-IN-CHIEF<br />
Nick Kirby<br />
nick.kirby@blglobal.co.uk<br />
ART DIRECTOR<br />
Angela Lyons<br />
SUB EDITOR<br />
Kate Wheal<br />
BUSINESS DEVELOPMENT<br />
CONSULTANT<br />
Jane Gregory<br />
jane.gregory@blglobal.co.uk<br />
ADVERTISING<br />
sales@blglobal.co.uk<br />
NEWS AND EDITORIAL<br />
news@blglobal.co.uk<br />
29<br />
7 News<br />
A round-up of the<br />
latest business news<br />
from the Channel<br />
Islands and beyond<br />
12 Appointments<br />
Recent key hires for<br />
Guernsey and Jersey<br />
businesses<br />
16 Interview<br />
Sheila Dean, Global<br />
CEO of Equiom Group,<br />
talks business<br />
Finance<br />
20 P2P investment<br />
How peer-to-peer<br />
lending is moving into<br />
the wider market via<br />
investment trusts<br />
24 NEW BUSINESS<br />
If you’re planning to<br />
move into emerging<br />
markets, should you<br />
be targeting old or<br />
new money?<br />
29 financial crime<br />
Cyber crime may be<br />
stealing the headlines,<br />
but ‘traditional’ methods<br />
remain a big problem<br />
32 CRS<br />
The challenges posed<br />
by the arrival of the<br />
Common Reporting<br />
Standard<br />
34 fintech<br />
Is it the next big thing<br />
for the Channel Islands<br />
or are the possibilities<br />
being overplayed?<br />
business<br />
40 CEOs and CSR<br />
Do CEOs who have<br />
daughters run more<br />
responsible companies?<br />
44 RECRUITMENT<br />
How hiring the<br />
wrong person can be<br />
a costly mistake, in<br />
more ways than one<br />
40<br />
48 employee ownership<br />
What are the benefits of<br />
staff owning all or part<br />
of a company?<br />
53 change management<br />
‘Change’ is often seen as<br />
a buzzword, but getting<br />
it right can mean success<br />
or failure for a business<br />
technology<br />
59 automation<br />
Amid all the hysteria<br />
about machines taking<br />
over our jobs, are<br />
robots really destined<br />
to rule the workplace?<br />
62 small tech stocks<br />
Looking to get in on the<br />
action with the big tech<br />
companies of the future?<br />
Then tread carefully<br />
66 APPs<br />
Five apps that can help<br />
make your life easier<br />
and more enjoyable<br />
<strong>BL</strong>jersey<br />
Stable Q3 for<br />
finance sector<br />
unds and corporate activity in Jersey’s finance<br />
industry remained buoyant and banking business<br />
Fwas stable in the third quarter of 2015, according to<br />
the latest figures for Jersey’s finance industry.<br />
jersey Aircraft Registry takes off<br />
F<br />
Monterey Insight issues<br />
funds review<br />
70 bl Jersey<br />
Finance industry<br />
updates and figures,<br />
plus latest business<br />
developments<br />
73<br />
The Agenda<br />
From tequila with<br />
George Clooney to<br />
high-end speakers<br />
wearing coats, it’s<br />
a fascinating start<br />
to 2016<br />
F<br />
GENERAL ENQUIRIES<br />
enquiries@blglobal.co.uk<br />
contributors<br />
The <strong>BL</strong> Global Discussion Forum<br />
Follow us @blglobalnews<br />
Office: Floor One, Liberation Station,<br />
Esplanade, St Helier, Jersey JE2 3AS<br />
© Chameleon Group Limited, all rights reserved.<br />
Reproduction in whole or in part without written<br />
permission is prohibited. Views expressed by our<br />
contributors are their own and do not necessarily<br />
represent the views or policies of Chameleon<br />
Group. While every effort is made to achieve<br />
total accuracy, Chameleon Group cannot be held<br />
responsible for any errors or omissions.<br />
DR LIZ ALEXANDER<br />
Our Texas-based scribe<br />
Liz takes an up-closeand-personal<br />
look at<br />
whether we’re all going<br />
to lose our jobs to robots,<br />
and discovers that<br />
being human is the one<br />
characteristic that<br />
simply can’t be replaced.<br />
DAVID BURROWS<br />
Business writer David<br />
heads off to emerging<br />
markets to see whether<br />
Channel Islands firms<br />
looking to capture new<br />
business should focus<br />
on entrepreneurial<br />
start-ups, existing wealth<br />
or a bit of both.<br />
BEN JORDAN<br />
John Lewis may be<br />
the best known company<br />
where staff own a share<br />
of the business but, as<br />
our writer Ben discovers,<br />
it’s a trend that seems<br />
to be growing<br />
and benefiting<br />
everyone involved.<br />
DAVE WALLER<br />
It’s another triple-header<br />
for <strong>BL</strong> stalwart Dave,<br />
who looks at the<br />
potential of fintech in<br />
Guernsey and Jersey;<br />
newly launched P2P<br />
investment trusts; and<br />
the human face of<br />
financial crime.<br />
www.blglobal.co.uk january/february 2016 5