Guernsey has many financial services industries. As an specialist finance centre, the Island provides first-rate services in numerous fields such as Banking, Fund Management and Administration, Private Wealth and Insurance amongst others.
The Island’s regulatory and fiscal environment is also perfectly suited to enable businesses to flourish. For more in-depth information about Guernsey’s financial services please visit Guernsey Finance – the island’s promotional body for the industries.
For more than fifty years, Guernsey has been one of the world’s best-regarded and most successful international finance centres. Across the various industries mentioned above, that strong reputation is based on five key strengths:
- Core services of a very high quality
- High regulatory standards
- A compliant and transparent tax regime
- Innovation as a hallmark of problem solving and creating new opportunities
- Guernsey’s positive relationship with the UK
For more than fifty years, Guernsey has been one of the world’s best-regarded and most successful specialist finance centres.
The sector provides products ranging from international wealth management, retail banking and savings through to institutional business and specialist lending. Some of the most highly respected names in international finance have chosen to locate their banking in Guernsey, establishing subsidiaries or relocating their entire operation, alongside independent, boutique providers.
The Island’s banking sector has very strong connections to other financial services sectors, offering a variety of services to institutions and individuals. These include credit services, frequently used as a wealth management tool when lending is required for investments; savings accounts at competitive offshore rates; treasury services used to access money market and foreign exchange services and custody services which ensures efficient and confidential asset management.
Guernsey also has its own Depositors’ Protection Scheme which can be accessed here.
Fund Management and Administration
Funds based in Guernsey are promoted or sponsored by institutions in more than 50 locations around the world, underlining the Island’s first class reputation as a centre of excellence for funds. As of 2016, £225 billion worth of funds is under administration or management in Guernsey by over 50 fund managers, custodians and administrators. They are complemented by award-winning lawyers, investment advisers, accountants and stockbrokers.
There is vast experience in dealing with asset classes such as funds of hedge funds, private equity and property that are becoming ever-more popular amongst investors’ portfolios. A wide range of products are available, including non-Guernsey and Guernsey open and closed-ended investment funds.
The Island also has expertise in using a wide range of investment vehicles including unit trusts, PCCs, ICCs and limited partnerships.
Guernsey has long provided private wealth management services to clients across the globe. As a leading international fiduciary centre, the Island’s status is built on its expertise, experience, innovation and a well-regarded regulatory regime.
Guernsey is home to one of the UK’s larger regional branches of the Society of Trust and Estate Practitioners (STEP) with more than 600 members. This is made up of both large and many smaller independent operations. Alongside these businesses there are hundreds of licensed individuals who provide expertise as directors, co-trustees and trust protectors.
Guernsey is home to many award-winning fiduciary firms and innovative structures. The Island introduced the Guernsey Foundation which has several unique features making it a more attractive option than can be found elsewhere. The Guernsey Foundation is particularly strong in asset protection, estate and succession management and private wealth planning for globally mobile individuals and families.
Guernsey was one of the first jurisdictions to introduce an effective licensing and supervision system in relation to trust administration services, company management and ancillary services. It is the businesses that manage and provide fiduciary services that are regulated, rather than the trusts themselves.
- Guernsey Finance – Private Wealth
- The Society of Trust and Estate Practitioners (STEP) Guernsey Website
- Guernsey Association of Trustees (GAT) Website
In Guernsey, the Protected Cell Company (PCC) was born and it continues to be extensively used.
For a small Island, Guernsey’s insurance sector has a big reputation. Guernsey is Europe’s largest captive insurance domicile and the fourth largest domicile in the world. Risk management solutions in Guernsey are characterised by high professional standards and world-leading innovation.
Across a wide range of other areas, such as employers’ and public liability, motor, property damage and business interruption, employee benefits as well as life and health insurance, large amounts of business are written by insurance entities in Guernsey. Insurance policies are also featuring as components of wealth management plans and are popular with High Net Worth Individuals.
The first Guernsey captive insurance operation was started in 1922 and now there are nearly 800 international insurance entities in Guernsey. 40% of UK FTSE 100 companies have a captive presence in the Island.
Fintech is the integration of finance and technology. As a sector it seeks to evolve financial models using the latest technology to transform established models and ways of working. Visit our ‘Built on innovation‘ page to learn how Guernsey is committed to striving forward in this exciting new sector.
In Guernsey, our regulatory regime in financial services has an inherent connection to the Island’s excellent reputation in those sectors, finding a helpful balance between robust protection and recognition of new opportunities.
The Guernsey Financial Services Commission is the regulatory body for the finance sector in the Bailiwick of Guernsey and has been operating for nearly 30 years.