Guernsey’s Chief Minister, Lyndon Trott, told a major
London conference that the island should not be "dismissively" compartmentalized
as an offshore financial center.
He was speaking at The Future of Onshore and Offshore Financial Centres Conference
alongside Jeffrey Owens, Director of the Center for Tax Policy and Administration
at the OECD, and Michael Foot, Chairman of the Promontory Financial Group and
author of the recent HM Treasury commissioned report into the British Crown
Dependencies and Overseas Territories.
The Chief Minister said the onshore/offshore distinction was outmoded in the
modern globalized economy. Instead, he highlighted the island’s position in the Global Financial
Centres Index (GFCI), in which, in September this year, Guernsey was ranked
15th in the world.
“For a small island with a population of 62,000 people that’s something
we are immensely proud of. Although we are small in terms of land mass and population, we punch above our weight,” said Trott.
“That places us in the top bracket of what are referred to as offshore
finance centers – and ahead of so-called onshore centers such as Luxembourg
and Dublin.”
Trott said it was a reflection of the island’s mix of talent, independence
and natural assets and maturing financial services industry, and also a reflection
of an important and increasingly recognized link to the City of London.
The recently published Foot Review into British Offshore Financial Centers
showed that in Q2 2009, UK banks received more than USD330bn
from Guernsey, Jersey and the Isle of Man. In 2008 – the year of the financial crisis
– the level of net financing provided from Guernsey to the City was around 40% higher on average than just two years before.
Trott said that the independent verification of this figure was helping to
change perceptions of the island’s role in the international financial
system and its relationship with the UK.
A former financial trader before he entered politics, Trott acts as an overseas
ambassador for Guernsey in his role as Chief Minister.
This year he has made three visits to Brussels and also visited Washington,
Mexico and China to promote the island and its financial services business.
He highlighted the progress made with China during the address to the conference.
“We must conclude that the financial crisis has resulted in greater
scrutiny of all financial centers – and there’s a growing gap between
those at the top end, and the rest. That’s why we in Guernsey are committed
to staying ahead of the pack,” Trott said.
LAWANDTAX-NEWS.COM
