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Why choose the Channel Islands for your family office?

With so many service providers across the globe, what draws a family office to the Channel Islands to set up operations? Mary Humphreys explains.
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Published 30 June
2 mins

This is the million dollar question. With so many service providers across the globe and with the international reach of our family office clients – what draws them to the Channel Islands?

There is no denying that we are a competitive jurisdiction, which is able to provide opportunities for structuring arrangements of varying complexities. We have a highly qualified workforce to aid our clients with their wealth planning, asset protection and philanthropy needs. Clients’ structuring requirements are continually evolving and increasingly complex, demanding a high level of expertise. As a jurisdiction, we are a centre of excellence with an increasing level of accreditation-granting bodies such as the Society of Trust and Estate Practitioners, ICSA: The Chartered Governance Institute, and the Chartered Institute for Securities & Investment, to name but a few.

 

The stable political landscape in which we operate allows us to tailor our services to meet each individual family’s diverse needs. When combined with the very robust but practical levels of governance, it is clear why we would be a preferred location for establishing a family office.

We are considered a prime location between the Americas and Asia, and have first-rate connectivity to London, which allows clients flexibility in how they wish to contact their advisers. In a world where we have seen the likes of the Paradise Papers and Bahamas Leaks, and the fallout that this creates for our clients, they quite understandably want the reassurance of being in a first-rate jurisdiction.

 

Of increasing importance is the digital infrastructure and cybersecurity in which we operate. Our reliance on information and communications technology is embedded deep in our everyday lives and the implication of this in the context of administering a family office is no different at all.

Over the past few years, we have seen many breaches of cybersecurity offshore as indicated earlier. The Channel Islands is proud of the measures that are in place to protect our clients and ensure we maintain the competitive advantage.

 

The other attractive element is our legal system. Families are embracing the robust legal framework in which we operate. The Channel Islands have been consistently early adopters of regulatory change, which substantiates our position and commitment to enhancing our jurisdictional compliance. One only has to glance through the latest Moneyval reports for the islands to see that they rated as some of the best national reports.

This area would not be complete without acknowledging the tax neutrality of the jurisdiction. Pierre Moscovici, the European Commissioner for Economic and Financial Affairs described it as the “first ever EU list of tax havens” when he described the “tax blacklist” in the EU list of non-cooperative jurisdictions for tax matters. This was thanks largely to the introduction of economic substance regulations, as outlined by Sharon Cleal in her article. This confirms that the Channel Islands have the required framework to execute, supervise and enforce the regulations confirming their ability to handle tax compliance directly.

 

In summary, there would be far worse decisions that you could make than establishing your family office in the Channel Islands, and your future generations may thank you for your foresight in years to come.

Should you require any further information, please do not hesitate to contact your usual Nedgroup Trust relationship manager who would be happy to discuss the topic with you.

 

Or if you wanted to find out more about how Nedgroup Trust, or Nedbank Private Wealth, can help you plan and structure your wealth for your family and for future generations, please get in touch using the links to the forms towards the end of this page.

The structures and wrappers used are provided for illustrative purposes only, and are not to be read as an invitation or inducement to buy a service. This content does not constitute advice or a personal recommendation. Individuals should seek professional advice, based on their jurisdiction and personal circumstances, before making any financial decision.

about the author

Mary Humphreys

Mary Humphreys

Mary joined Nedgroup Trust in 2020 as a senior trust manager. She has been in the industry for 16 years, having started her career at KPMG. She has progressed through the ranks from assistant administrator through to senior trust manager, and now runs her own complex portfolio of clients. Mary also publishes a wide variety of articles.

 

She completed her STEP Diploma in 2012 and went on to gain recognition by attaining the STEP Certificate in Foundation Law and the STEP Advanced Certificate in Trust Disputes, both of which she passed with distinctions.

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