Guernsey's finance sector has a global reputation for quality, security, innovation, and meeting international standards.
It is supported by world-class professional services and an internationally-recognised regulatory framework. The sector is the central pillar of Guernsey's economy and will continue to be so. The finance sector is split into 4 pillars (i) investment funds, (ii) insurance, (iii) fiduciary and (iv) banking.
Finance Sector Development ("FSD") is responsible for, inter-alia,:-
(a) developing new policies and legislation for the finance industry, including government strategy in respect of the finance sector;
(b) providing advice in respect of international issues affecting financial services;
(c) working with Guernsey Finance in respect of finance sector's promotional strategy;
(d) developing policy, and guidance, for the Guernsey Competition and Regulatory Authority, the Guernsey Banking Deposit Compensation Scheme and the Guernsey Office of the Financial Services Ombudsman;
(e) working on regulatory policy, and legislation issues, with the Guernsey Financial Services Commission; and
(f) providing legal advice to the Committee and the Guernsey Registry on matters relating to the finance sector and financial legislation.
Sector Size
- The finance sector remains Guernsey's largest sector of employment activity and earnings. The sector, including legal and accounting activity, adds in the region of £1.2bn to the economy equating to 44% of the Island's economic output.
Funds and investments pillar
- Guernsey is a leading specialist centre for investment fund business, particularly in alternative assets, such as private equity and real property.
- In addition to the contribution to the local economy, Guernsey's funds industry also provides significant benefits to the UK, continental Europe and the rest of the world, including:
- (a) acting as a conduit for overseas investment, into the UK, from European and international investors;
- (b) facilitating access for UK investors into global assets; and
- (c) providing options for capital deployment, including private equity, infrastructure and property.
- Frontier Economics' 2020 report on international capital flows, commissioned by the Committee for Economic Development, is available as a PDF on this webpage.
Insurance pillar
- Guernsey's insurance industry provides alternative risk transfer solutions to sophisticated clients, and acts as a recognised centre for captive insurance, reinsurance and insurance linked securities.
- PwC's 2016 Insurance Sector Strategic Review, commissioned by the Committee forEconomic Development, is available for download here.
Fiduciary pillar
- Guernsey is a major centre for the provision of international trust and corporate services. Guernsey's Fiduciary Sector comprises licensed fiduciaries/entities and licensed individuals who act as trustees. The Sector benefits from, and contributes to, Guernsey's mature and sophisticated professional services infrastructure. It provides a diverse range of trust and corporate services to an international client case, covering private client, corporate and institutional businesses.
- KPMG's 2016 Strategic review of the Guernsey fiduciary industry, commissioned by the previously known Commerce and Employment Department, is available for download here.
Banking pillar
- The banking sector is one of the most important pillars of the financial sector and plays a vital role in the functioning of the Bailiwick's economy. Every aspect of the finance sector (and the broader economy) requires a functioning banking sector.
- Guernsey's banking sector provides the island with diversity and economic resilience, by mobilising deposits and providing credit to various sectors of the economy, as well as providing employment opportunities.
Strategy
- Guernsey's Financial Services Strategy document, published by the Finance Sector Policy Unit in 2014, is available for download here.
Finance Sector Forum
- The Finance Sector Forum is the peak consultation forum for development, promotion and regulation of financial services in Guernsey. The aim of the forum is to provide an interface between the States of Guernsey, the GFSC and the financial services sector on the Island. Membership of the forum consists of politicians, civil servants and industry representatives. The forum meets monthly at Sir Charles Frossard House to discuss a variety of topics relating to the mandate of the forum.
