SPONSORED FEATURE
A flight to quality for family offices By Geoff Cook, CEO, Jersey Finance
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amilies and family offices are increasingly looking to jurisdictions that can demonstrate high levels of stability, substance and expertise, and a rational response to transparency, and this trend if manifesting itself firmly in Jersey. The last couple of years have seen a steady climb in the number of single and multi-family offices and family office service providers relocating to or expanding in the island, such as Hawksford and Crestbridge. Bedell Group have also recently launched a multi-family office which includes a client from one of the island’s largest single family offices. Firms are attracted by Jersey’s reputation as a specialist wealth management centre, founded on its expertise, high quality levels of service and impressive network of firms - including global banks, major accountancy firms, key offshore law firms, trust companies, fund managers, custodians and advisers. Having this infrastructure in place enables family offices to access a full range of services locally, covering simple structures through to more complex ones involving trusts, companies, limited partnerships and foundations.
Global With families increasingly pursuing globally mobile lives, an ability to manage diverse family assets securely across borders is vital. An offshore
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CampdenFO
Spring 2014
solution that is used to handling crossborder transactions and international estate planning requirements safely and efficiently is therefore much more attractive than traditional onshore locations. Moreover, Jersey has established positive relationships with countries stretching from Latin America, the USA and Europe to the Gulf region and the Far East, with over 40 tax agreements signed with countries worldwide. This reach is significant, with recent statistics reinforcing that wealth continues to migrate east. The value of wealth held by HNWIs in the Asia-Pacific region, including Hong Kong, India and China, stood at $12trn in 2012 (Capgemini World Wealth Report 2013). In the Middle East, meanwhile, the HNWI wealth increased by 8.6% in 2012, whilst the HNWI population in Africa grew by 9.9% and wealth increased by 11.5% compared to the global average of 10%. With this in mind, Jersey’s growth in family office services is largely being driven by demand from those regions, including Hong Kong and mainland China in the Far East, the Kingdom of Saudi Arabia, the UAE and Qatar in the Middle East, and Nigeria, Kenya and South Africa in Africa. Growth in these areas is anticipated to continue in the coming years, with families looking for precisely the kind of politically neutral and well regulated structures that Jersey can offer, particularly in support of extensive dynastic planning, family wealth and business activity.
Jurisdictions supplement
Geoff Cook, CEO, Jersey Finance
The concept of confidentiality and secure data handling, meanwhile, remains pertinent to high profile families in those regions too. A global drive towards transparency is something Jersey supports, providing it is done through the adoption of sensible workable global standards. Jersey itself is one of the best regulated and cooperative International Finance Centres globally as acknowledged by bodies including the OECD and IMF, and takes a mature approach to balancing transparency with a legitimate right to an appropriate level of confidentiality. As the world’s leading offshore centre, Jersey is in a strong position to embrace this trend for a growing globally-focussed family office sector and offer families a robust, innovative service to meet their wealth planning expectations.
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