CfED Update October 2018
Economic Development Strategy Priorities Welcomed by GIBA
GIBA welcomes the update published by the Committee for Economic Development (CfED) on the implementation of the States of Guernsey Economic Development Strategy which will be debated at the States meeting on 28 th November.
Bearing in mind the concerns voiced at the recent Institute of Directors Convention that 20 priorities are too many, GIBA is encouraged that the 20 ‘actions to promote stronger growth’ have been categorised as critical, important or beneficial.
In particular, we are pleased that GIBA’s three main focus areas of transport links, skills and growing and developing the finance sector are all regarded as critical. The other three action areas which have been categorised as critical are the digital, telecoms and the seafront enhancement area.
Transport – Critical
On transport links, we are pleased that there will be an update to States members on the external strategic review of air and sea links infrastructure before Christmas. Hopefully coming from this will be action to develop the runway at Guernsey Airport. The repositioning of the safety area may well be a medium-term improvement and potentially could be dealt with in addition to and on a quicker time frame than any longer-term runway extension.
Given the inevitable timing of infrastructure improvements, GIBA continues to press for short-term action on air links including the waiving, or significant reduction, of landing charges at Guernsey Airport which are amongst the highest at airports in the British Isles. GIBA, therefore, welcomes CfED’s plan to bring an air routes policy letter to the same States meeting which will consider the infrastructure review. We very much hope that this will allow the flexibility for existing as well as new routes to be supported, whether through a reduction in landing charges or other means.
Keeping Young Talent on Island
On skills, whilst there have been many years of discussion and research, GIBA is pleased that a plan is now being developed to ensure Guernsey has and retains a highly skilled workforce. GIBA will play its part in encouraging local graduates to return and join the island’s workforce. We also look forward to contributing to the development of an on-island financial services apprenticeship scheme.
Financial Sector – Solid Foundation for Economy
The finance sector, of course, provides the foundation on which our economy is built, and whilst efforts are made to diversify the economy it remains critical that government continue to support the growth and diversification of the finance sector. Work continues apace on five key development areas, and a financial services policy framework is due to be published in November, with much of this work being led by Guernsey Finance.
Government funding of our promotional agency is, however, a fraction of the financing of the equivalent agencies in our competitor jurisdictions. Increased support and funding of the agency by both industry and government will be critical in maintaining and growing our finance and professional services sector which provides the bulk of the tax which funds government spending.
Attracting new financial services business to the island will also be key and with the new team at Locate Guernsey now announced and its funding renewed, we look forward to more joined-up working between these agencies to this end.
Update – Proceeds of Crime Legislation
Amendments to the Proceeds of Crime legislation will be considered by the States of Guernsey in December and the effective date for the commencement of the Ordinance will be 31st March 2019.
In light of this, the opportunity has also been taken to revisit the deadlines for the transitional provision arrangements. The matrix below outlines the revised timings:
For the avoidance of doubt, any MLRO or Nominated Officer who has been appointed under the current regulations will be grandfathered over to the revised framework, with no requirement to further advise the Guernsey Financial Services Commission or the FIS of the appointment.
September Industry News Round-Up
GIBA’s monthly news round-up keeps you abreast of the latest news affecting Guernsey’s finance sector and our member organisations.
Don’t forget to follow @GIBAGuernsey on Twitter for updates and news throughout the month.
10 Years Beyond the Financial Crisis
‘Ten years on from the global financial crisis Guernsey has a well-diversified finance sector of which we can be proud,’ says GIBA Chair, David Oxburgh.
Read his summary of the island’s primary economic contributor here.
2018 Proving a Positive Year for M&A Deals
The value of global offshore M&A deals in the first half of 2018 nearly matched the total recorded for the entirety of 2017, according to a report released by offshore law firm Appleby.
The latest edition of Offshore-i, an Appleby insight report on merger and acquisition activity in major offshore financial centres, focuses on transactions announced over the first half of 2018.
Bailiwick’s Interests are Being Considered During Brexit Negotiations
Lord Keen has provided assurance that Guernsey’s interests are being looked after in London during Brexit.
Lord Keen is the Ministry of Justice spokesman in the House of Lords, as well as the minister with responsibility for the Crown Dependencies. He was on the island during September and said: ‘The UK government respects the constitutional position of the Crown Dependencies.’
Meanwhile, Deputy Gavin St Pier, President of the Policy & Resources Committee, has written to Prime Minister Theresa May to outline the island’s position regarding a ‘No Deal’ Brexit.
‘We continue to plan for the prospect of a new partnership between the UK and the EU. It is vitally important that our interests continue to be taken into account in the UK-EU negotiations and to ensure that our ancient and historic constitutional relationship with the Crown is upheld and respected.’
Read the full letter here
Guernsey Continues to Make Captive Developments in China
Guernsey’s progress in the Chinese market was reported at a We Are Guernsey update event in September. Guernsey Finance gave an on-island update on China, with the audience of more than 100 hearing about developments in the Far East.
Local businessman Charles Scott, from Alternative Risk Management, also spoke at the event. He has made significant progress introducing captives to the region over the past couple of years.
A second event focused on the China market, Guernsey Finance Masterclass in Hong Kong, examined the potential of accessing a selection of alternative asset classes through Guernsey investment structures.
The summary of the August council meeting minutes and September technical status report are now online in the members’ area of our website. If you don’t have a password, please get in touch with your member association or email: email@example.com
FINANCE IN THE COMMUNITY
Our Twitter feed this month has been swamped with events and activities being sponsored by firms in the finance sector and related professional services.
Check them out using the hashtag #GsyFinance4Community, and you’ll see what incredible support the industry gives our community. Here are just a few examples:
Finance Community supports Herm Swim 2018
This year’s successful Herm Swim 2018 challenge was supported by a host of financial sponsors. Around 45 swimmers made the crossing to Herm Island to raise money for the Guernsey Society for Cancer Relief and This is Epic.
Swimarathon Invites Corporate Teams to Make a Splash
The Skipton Swimarathon is encouraging more corporate teams to join its Corporate Sponsor Awards Scheme and raise funds for charity. The Awards will recognise three levels of fundraising, with Accreditation Rosettes being given to companies to acknowledge their support.
Guernsey Photography Festival Supported by Raven Property Group
Raven Property Group has partnered with Guernsey Museums & Galleries and Guernsey Arts Commision to deliver the 2018 Guernsey Photography Festival.
Running from 20 September to 20 October, this year’s festival is themed ‘Political Landscape’. The popular event will bring together some of the world’s leading and emerging contemporary photographers alongside the usual mix of educational and community events.
Thursday 4th October – Deadline to Register to Vote
Anyone wishing to vote in the referendum must register to vote by 4th October. The referendum to select the way Guernsey votes for its Deputies will take place on 10th October.
More information about the referendum can be found here.
Friday 19 October- Sanctions Explained
Collas Crill is hosting an event to address a range of sanctions issues with leading barrister Maya Lester QC
The Duke of Richmond
Friday 19 October from 8:30am to 10:30am.
Tickets are £40.00
Thursday 11 October – Deloitte Breakfast Briefing
Deloitte is hosting a breakfast briefing to explore the expected framework of the new EU Code of Conduct Group (Code Group) economic substance legislation and examine the practical implications of the changes.
8am – 9.45am (presentations starting at 8.30am)
Duke of Richmond Hotel, Somerset Suite.
RSVP: Mandy Sangan, email: firstname.lastname@example.org or Tel: 01481 703285.
2008 – 2018 Looking Back and Looking Forward in Finance
David Oxburgh, Chair, Guernsey International Business Association
Ten years on from the global financial crisis Guernsey has a well-diversified finance sector of which we can be proud, and which makes a considerable contribution to the economy of our island.
Local industry highlights include:
– In the investment funds space, we are a globally-respected specialist centre in the servicing of alternative assets (such as private equity, infrastructure and alternative debt);
– We are home to a specialised insurance sector which is pioneering and innovative;
– Our robust constitutional, legislative and regulatory framework provides a safe and secure environment for private wealth;
– Guernsey is an established centre for investment management, home to a diverse range of niche investment firms;
– We are a centre of excellence for international retirement benefit schemes; and
– The island has a mature banking sector, home to over 20 international private banks.
Given the dependency of our economy on the finance sector, one may have expected the global financial crisis to have had a greater impact than it did. It certainly didn’t have the same immediate effect as elsewhere.
Our success over the last 10 years, or indeed the last 50, is down to innovation coupled with a supportive government and regulatory regime and these factors will be as key going forward as they have in the past. The diversity of the sector and the breadth and depth of expertise here, which positions us as a global finance centre with economic substance, is a testament to the qualifications and experience of those working here. Skills and training of new entrants and existing employees, therefore, remains an important area of focus.
Whilst there remain challenges, the future is looking exciting. With a financial sector strategy framework due to be published in the coming months and industry, government and regulator working together with Guernsey Finance on five short-term action areas, including green finance and global funds distribution, the plan is that Guernsey’s proposition will be even more attractive as we move forward.
Follow GIBA on Twitter @GIBAguernsey
GIBA to host CI Pride Breakfast Event
GIBA is hosting a Pride Breakfast to support CI Pride and its celebrations on Friday 7th September at Urban Kitchen.