Extra £1m. backing is securing good business
New finance business is reportedly pouring into the island after the States boosted the industry’s promotional budget.
Deputies agreed earlier this term to increase funding for Guernsey Finance by £1m. a year until 2027.
Economic Development president Neil Inder yesterday told the States he had ‘very good news’ about the effects of the additional funding.
‘Guernsey Finance is currently facilitating the introduction of four new life branches and a new fiduciary licence. These have been the catalyst for numerous new trust, company and fund structures being moved to or formed on the island,’ said Deputy Inder.
‘Guernsey Finance is also working on over 40 pieces of new business for Guernsey, including notably a trust company licence, two investment managers, a custody platform, two major fund structures, a currency management banking licence that is set to become a full banking licence in early 2025, and a further two new banking licences.’
The financial services industry is worth about £1.3bn. to the local economy, which is more than the next 10 largest industries combined.
Listen: Tony Curr and Matt Fallaize round up Wednesday’s debate on our Shorthand States podcast
Deputy Inder claimed increasing funding to promote Guernsey as a financial services centre was one of the most significant decisions made by the States in the early part of this political term.
However, he had no good news for campaigners hoping to force HSBC to keep open its branch on the Bridge which it wants to close.
Deputy John Gollop asked if Economic Development would work with clearing banks to encourage them to maintain branches outside of Town.
‘The opening and closing of branches are entirely operational decisions,’ said Deputy Inder.
‘This island needs to realise that everything is going only one way and it’s going to be digital. The sooner we accept that, we’ll be in a better place.’
Deputy Gollop also wanted to know if Economic Development was working with finance companies to offer equity release locally, after the Guernsey Press recently reported scepticism in the industry about a new push to attract such schemes by the Guernsey Financial Services Commission.
Deputy Inder said he had no knowledge of any work being carried out and invited Deputy Gollop to write to him on the issue.
