RBC warns of finance's stability
NEWS of the orderly withdrawal of RBC Wealth Management from the island over the next couple of years will be a major disappointment for all, but also seen as an occasional occupational hazard of life as an international finance centre.
RBC is one of the major players and stayers in the local finance industry. It’s been around since the 1970s and its offering has demonstrated the breadth of the sector.
However its longevity locally may be one of the reasons why it was more susceptible to reviews commissioned by head office in Canada. After it bought Brewin Dolphin last year for £1.6bn, it announced plans to become a major player in commercial banking in the UK. Head office may well have asked why there was an even bigger office just 20 miles away, one that the bank owned, having sold up in Guernsey two years ago, doing largely the same work.
The move exposes a vulnerability which it is easy to underestimate. The Tax Review, and population plans and forecasts, don’t plan for decline in financial services. But pockets of the industry are not booming, and although finance sector GDP bounced back post-Covid, it had previously slumped.
Staff released by RBC’s departure can probably expect to walk into similar jobs in today’s jobs market, but as this news demonstrates, nobody should be complacent about the finance industry’s continued performance.