By Nick Careless
October 2009
With its reputation for strong corporate governance, innovative legislation, pragmatic regulation, excellent business infrastructure, competitive tax environment and convenient location, Guernsey presents itself as ’the symbol for international finance’.
Indeed, at last year’s STEP Awards, Guernsey was named International Finance Centre of the Year and this October a number of firms either headquartered, or with a significant presence in, Guernsey received nominations for the 2009/2010 Awards held in London. With the Guernsey offices of firms such as Ozannes, Kleinwort Benson, Turcan Connell and Butterfield up against the very best on the international stage and Ogier winning IFC legal team of the year, it was another good year for the island and a testament to the calibre of the professional workforce.
Employing well over 2,000 people and with more than £300bn worth of assets in trust, Guernsey is a leading international fiduciary centre with 50 years experience of supplying trust and corporate services. The Guernsey branch of STEP is one of the largest regional branches with over 500 members, so the island is clearly well-resourced to deliver competitively in the field of wealth and asset preservation for both institutions and private clients.
Alongside trust and combined with the island’s internationally competitive private banking and funds sectors, Guernsey’s secure and well-regulated centre presents compelling reasons to those seeking to house their wealth and structure their businesses.
Guernsey has not however been immune to the global economic downturn with the island experiencing a continued drop-off in business and hiring throughout 2008 and 2009. Guernsey business does however seem to have weathered the storm better than some of its competitor financial centres, with robustly established fund structures and other vehicles managed by competent qualified professionals contributing to Guernsey’s relatively strong comparative position. An increase in hiring activity over recent months would also suggest that a corner may have been turned.
AP Executive Guernsey recruitment consultant Mike Bonsall says ’’In comparison to other key market sectors, Guernsey’s trust industry has managed to remain encouragingly buoyant throughout the past 12 months. Whilst overall recruitment is down on previous years, companies that are hiring have been able to attract interest from very high calibre candidates, both from within the island and from other jurisdictions.’’
What can Guernsey offer the international professional thinking of a move?
According to AP Group Chief Exec Gina Le Prevost, herself a native of Guernsey, the island offers a ’home away from home’. A private client practitioner coming to the island from the UK will enjoy a way of life that is different but not too different from that back on the mainland. Says Gina, ’The scenery is beautiful, the beaches are fantastic and the restaurants are excellent, but most of all Guernsey is friendly and safe, an enormous consideration in this day and age’.
Indeed, with the new 50% tax rate for higher earners impacting Britain, it is not only Guernsey’s reputation for security and pleasant beaches, but it’s standing as a quality business centre, that makes the island an attractive place. As an example, Guy Hands, one of the wealthiest people in Britain, and boss of private equity group Terra Firma, is one of the latest business leaders to quit Britain and establish himself in Guernsey to benefit from the friendlier tax regime.
For the professional thinking of relocating to Guernsey, there are practical considerations to take into account. Due to Guernsey’s physical size, there are strict controls regarding housing and the growth of the population is controlled through legislation. To the uninitiated, the laws surrounding housing on Guernsey can seem somewhat complicated, with different levels of discretionary qualifications valid for specified periods of time, ’open’ and ’local’ market housing. Strict housing control legislation is enforced to ensure that only qualified persons are granted housing licenses. Qualified persons earning licenses are hired to fill positions which the Authority considers to be ’essential to the well-being of the community’. With the housing licence in place, one is then granted the Right to Work authorisation which allows employment. Off island jobseekers should always check whether the position requires ’local’ residential qualifications or if the position comes with a license.
Guernsey has built its enduring reputation upon quality of service to both private clients and those firms in the private client industry alike. In a world where firms and service levels become increasingly homogenized and where sterile call centres have taken the place of personal relationships, it is the values attached to these personal relationships, standards of service and the quality of the professional workforce that will ensure Guernsey’s continued success in the elite of the global offshore financial centres.
For further information on living and working on Guernsey email nick.careless@ap-executive.com
Nick Careless is Managing Director of AP Executive, specialist global private wealth management recruitment consultancy
Article first published in Private Client Practitioner magazine, November 2009