Crown dependencies look to Asia for business

Guernsey administrator opens in China, Jersey funds administration recovers to pre-recession levels while Asian bank deposits rise, IoM signs TIEAs with Japan and Indonesia, more planned with Europe.

International Administration Group

Cementing a developing relationship between China and the Channel Island, Guernsey-based firm the International Administration Group (IAG) is opening a private equity fund administration platform in Shanghai.

In partnership with local firm Exceedor, the firm will offer onshore renminbi denominated private equity fund administration services. The aim is to cater for those investing in China using both onshore and offshore structures.

The move follows the opening of a Hong Kong office by IAG earlier in the year.

It also builds on efforts by the Guernsey authorities to open up business with China. Last year, Guernsey’s Chief Minister Lyndon Trott signed a Memorandum of Understanding with the Shanghai Financial Services office, and the jurisdiction reached a tax and information exchange agreement with China. More recently, Guernsey companies were granted permission to list on the Hong Kong Stock Exchange.

Jersey fund administration business recovery

Fellow Channel Island Jersey has seen its fund administration industry recover to levels witnessed before the financial crisis.

The value of funds administered in Jersey is now at its highest since June 2009, first quarter statistics for 2011 from the Jersey Financial Services Commission show.

The net asset value (NAV) of funds under administration increased by £9.9bn, or 5.4%, from £184.7bn to £194.6bn in Q1.

The jurisdiction’s total number of funds administered also grew by the largest amount in the first quarter of any year since 2008. Forty regulated funds were added in the jurisdiction, rising from 1,324 to 1,364 between January and March 2011. Unregulated funds only went up by three, to reach a total of 125.

But the value of funds under investment management decreased slightly, by 0.2% against the previous quarter, from £21.4bn to £21.3bn.

Meanwhile bank deposits held in Jersey originating from the Far East and Middle East rose, to make up a combined total of 18% of Jersey’s level of deposits. A note from Jersey Finance said it reflected recent promotional activity by the jurisdiction in Hong Kong, Greater China and the United Arab Emirates.


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