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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

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