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