| This article from |  |
| The element of surprise
| TREVOR FALLE
Managing director, Ashburton Investment Managers |
WHILE Jersey has a long pedigree as an offshore finance centre, it has for many of those years also needed to fight the perception that it is merely a tax haven.
Quashing this label was not easy in the earlier decades when there was little co-ordinated promotion of the Island’s finance industry. But by and large, in more recent years, we have been very successful in this contest and the negative connotations that once clung have now dissipated, leaving us to enjoy the reputation of being a professional, reputable and well-regulated jurisdiction of choice.
This success has been achieved through the proactive efforts of the authorities, Jersey Finance Limited in particular, and, of course, through the extensive marketing initiatives that all of us involved in the industry undertake when looking at international market development. It has to be a complementary relationship after all because while Jersey Finance Limited effectively paves the way in building awareness of the Island’s credibility, it is up to us as companies to bring in the business. Nevertheless, Jersey still retains the ability to create the element of surprise because though we are now synonymous with words such as respected, trustworthy and excellence, it appears that there is still a real lack of understanding in the substance of the Island. This was borne out in a recent visit by a newly appointed senior executive of Ashburton’s parent company, the FirstRand Group, a bank assurer of significant stature and profile in South Africa which has £44 billion in assets under management, is listed on the Johannesburg Stock Exchange and employs over 35,000 people worldwide. While this senior figure recognised that FirstRand had obviously chosen to place their international asset management business in an established jurisdiction, he was completely astounded to discover what a thriving financial centre Jersey actually is, with a plethora of global names and an energy to be envied.
Without question, in four decades, Jersey has developed a breadth and depth in its range of services which is the envy of some of its competitors. On the four pillars of funds, banking, trust and legal sectors rests the plinth of our finance industry’s success. Ironically, many investors will deal with perhaps only one or two organisations here and they may not realise that we are home to more than 50 international banks from across the world and over 100 investment managers, stockbrokers, advisers and custodians, that there is a significant presence by all of the Big Four accountancy firms and that we have a range of highly respected offshore law firms. Furthermore, would they hazard a guess that there are over 12,000 people, a significant number of whom are professionally qualified, working in our financial services environment? All in all, not bad for a tiny dot in the Channel.
I can talk from some knowledge about our perception overseas. Our international outlook and our extensive contacts with leading bankers and investment professionals in South Africa have helped us to gain a considerable insight into the factors that are important to investors wherever they are based.
South Africa has been one of the regions in which Jersey has maintained a strong commercial relationship and it is a market in which Ashburton has been a prominent provider of financial services for many years. Furthermore, the Island has enjoyed a special relationship with the country since 1881 when it is said that an Old Victorian, Mr Andrian van der Byl, imported the first Jersey cows into Cape Town.
After the collapse of apartheid, which essentially brought South Africa into the free world, long-standing issues such as the relaxation of previously stringent exchange controls had to be addressed. This gave South Africans the opportunity to diversify their investment portfolios by investing overseas and with limited expertise of the offshore arena, South African financial institutions looked to form alliances which could fill this knowledge gap. With a well-established profile in the country, Ashburton was a natural choice for the FirstRand Group to consider. This thinking was consolidated by Jersey’s increased visibility and reputation as a quality jurisdiction and the ‘minimal’ time zone difference was also advantageous. FirstRand could have looked to other jurisdictions and competitors for their asset management capabilities. The fact that they selected Jersey and Ashburton is an enormously positive indicator of the Island’s overseas reputation, certainly with the finance community in South Africa at least.
Another prime target region for business development has been the Middle East and in recent years Jersey Finance Limited has spread the gospel through formal, Government-led delegations to the United Arab Emirates. Through London, the Middle East and Jersey have always sat comfortably together. The Island’s tax neutrality appeals to investors, be they expats or resident nationals. Outside the UAE, on behalf of FirstRand, I have recently returned from a fact-finding mission in Lebanon. It was interesting to discover that investor perception out there is neutral in relation to Jersey and while the Lebanese market appears much less competitive than Dubai, it is rebuilding itself into the financial centre for the ‘Near East’ or Levant region in Jordan, Syria and surrounding countries.
FirstRand also has a strong presence in three neighbouring countries outside South Africa – Namibia, Botswana and Swaziland. The Group is highly profitable in these markets and again there will be a role for Ashburton to play, not only in its own business development activities, but also in raising an awareness and understanding of Jersey as a well-regulated offshore centre of excellence. Essentially, and there’s no element of surprise here; what we all continue to share is a perfect complementary relationship.
| |
|
|
