As more jurisdictions enter the financial services market, it is more important than ever that Guernsey is able to compete in a fiercely competitive global landscape. That is why the sector has its own promotional agency for financial services – Guernsey Finance. But what does it do, how is it funded and who does the agency answer to? GF’s Chief Executive Rupert Pleasant answers these questions and more
What is Guernsey Finance?
A: Guernsey Finance was created as a joint government and industry initiative with the purpose of promoting and connecting our financial services offering in our chosen target markets and the aim of the agency is to safeguard the prosperity of Guernsey for future generations. The main pillars of Guernsey’s industry are comprised of investment and funds, private wealth, insurance, pensions and banking. Guernsey is also at the forefront of sustainable finance, which runs as a ‘golden thread’ through each of these pillars.
The agency conducts research, marketing, communications and business development on behalf of its members from Guernsey and overseas, with representatives also employed in our key markets globally. These are currently the North and South of the UK, the US, South Africa and the Middle East as well as having a representative based in the UK dedicated to the insurance industry.
Guernsey Finance’s role is to raise and maintain the profile of Guernsey’s entire finance sector and its products and services. The agency seeks to strengthen the economy for Guernsey’s population by ensuring that the core activities and values of the finance sector are known among the global community, ensuring business flows are maintained, but most importantly enhanced.
What is its value to the economy?
A: Guernsey’s financial services sector remains the key driver of the island’s economy, employing around 5,900 people - almost a fifth of its workforce, with an estimated further 16% employed in supporting industries such as accountancy, law, audit and other professional services.
Financial services in Guernsey is worth £1.3 billion to the local economy, which is more than the next 10 industries combined, representing 40% of GVA (gross value added).
In March 2024, the total value of banking deposits in Guernsey was £101.8 billion, 22.5% higher than the same point in 2023. Similarly, the total net asset value of Guernsey investment funds was £292.5 billion, an increase of £3.9 billion (1.3%). In the five years since March 2019, the value of Guernsey investment funds has increased by 35%.
The financial services sector provides an excellent standard of living for those working in the industry -and more importantly the wider population - who benefit from the contribution the financial services sector makes to the overall economy. It is therefore paramount that this industry is maintained, with provision to continue building on that success. This high value industry can continue to provide much needed tax revenue and economic growth against the backdrop of service cutting and tight budgets.
It should also be noted that the island’s finance industry is a major contributor to the third sector in Guernsey. Hundreds of charities benefit from the high degree of Corporate Social Responsibility which underpins many financial services businesses in Guernsey, providing much needed funding for a myriad of worthwhile causes.
Guernsey would look very different from the island we know today if the finance industry was diminished or reduced. Therefore, it is critically important to ensure that it can continue to flourish.
Not only that, but the island is also an economic driver of capital flows into the UK economy. A report commissioned by Guernsey Finance and carried out by Frontier Economics shows how Guernsey’s financial services expertise is aligned with several UK policy priorities such as the transition to net zero, infrastructure funding and regional investment.
The report found that Guernsey-based funds currently channel £57 billion of investment from around the world and into the UK economy, a number that has increased by 14% year on year since 2020.
Why does the finance sector need a promotional body?
A: While individual firms will conduct their own marketing initiatives, Guernsey Finance is the only agency which promotes the entire financial sector on behalf of the island. This is especially important as many larger international firms do not favour one jurisdiction over another.
As mentioned earlier, financial services and supporting sectors such as legal and accountancy, are the driving force of Guernsey’s economy. In order to protect and grow the sector – and continue to enjoy the benefits it brings to the whole community - it is imperative that our voice is not lost in an increasingly noisy and competitive marketplace which would result in a significant loss of market share.
And with a more challenging fund-raising environment globally, along with policy changes in two of our largest target markets, namely the UK and US, it is imperative that the expertise and benefits that Guernsey can provide are promoted and amplified at the very highest levels.
Finally, and very importantly, we also act as a shield when there may be miscommunication or misunderstanding regarding the benefit of our financial services industry to external jurisdictions. We seek to redress the balance, inform and educate.
What does the agency do?
A: The agency is based in Guernsey and employs 23 people on-island, with Business Development representatives deployed in the United States, South Africa, the Middle East and the United Kingdom. Guernsey Finance hosts events, conducts marketing, delivers communications and business development activity on behalf of its members across the local financial services industry of these target markets.
We work closely alongside industry to create an annual strategy to promote each segment of financial services, so everything we do is aligned with industry’s objectives.
Below is a list of some of the work the agency carries out. It is not exhaustive but gives a good overview of what we do:
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Commission in-house and independent research. Recent examples include a report from independent consultants Frontier Economics, which researched the value of the Guernsey financial services industry to the United Kingdom’s economy.
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The agency produces technical literature for industry that is also part of an essential toolkit for our business development representatives working overseas.
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We have a commercial arrangement with the Financial Times and produce 10 articles per year that in 2024 delivered more than 21,500 page views and more than 22 million marketing impressions.
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We have two podcast channels featuring guests at the very top of their profession. The Guernsey Finance Podcast has a growing audience of listeners and our Sustainable Finance Guernsey podcast remains in the top 10 of useful podcasts by the Green Finance Guide.
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We host flagship events for industry which attract off-island guests, offering the opportunity for Guernsey firms to enhance their professional exposure. These include the annual Funds Forum, Sustainable Finance Week and Private Wealth Forum. By inviting well-known guests such as Sir Trevor McDonald and Steve Backshall to deliver keynote addresses, we increase the appeal and engagement of these events. We also secure well respected industry figures such as Ben Goldsmith, who travelled to Guernsey to give a keynote address at the 2023 Sustainable Finance Week. We also host technical masterclasses to add real value to those who attend.
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We sponsor events such as the Society of Trust and Estate Practitioners (STEP) conferences and those that are specific to the insurance industry such as AIRMIC, the Association of Insurance and Risk Managers in Industry and Commerce.
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The agency’s business development representatives attend events and meetings with the aim of raising awareness of Guernsey’s specialist financial services industry and encouraging new business to establish itself in the island. Leads for business development are then passed onto the relevant professionals in Guernsey who can facilitate this business.
How much does it cost each year to operate?
Guernsey Finance receives core funding of £1.5 million per year, plus an additional £1 million in enhanced funding from the States of Guernsey. In recognition that it is a key beneficiary, industry also makes a contribution of approximately £1million to Guernsey Finance’s operational costs.
What is the money spent on?
The funding is spent in four main areas: strategy and research, PR and communications, marketing and events, and business development.
Who does Guernsey Finance report to and how often?
Guernsey Finance is answerable to its Board of Directors, which is made up of representatives from its two key stakeholders, the States of Guernsey and the Guernsey International Business Association. We have robust corporate governance in place, which is reviewed on an ongoing basis, and we provide comprehensive and transparent reporting to our stakeholders each quarter which contains key measurables and performance related data.
We also meet with our wider stakeholders each month at the Financial Services Forum and at GIBA Council, as well as meeting with each industry association - GAT, GIFA, GIIA, GAPP and AGB – on a regular basis. In fact, we have calculated that we meet with our stakeholders and industry associations more 80 times each year to listen, learn and provide feedback and key metrics.
What recent successes has GF had?
Since funding was renewed to Guernsey Finance in 2024, we have achieved some significant wins, including:
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Guernsey Finance had the opportunity to showcase Guernsey’s successes in sustainable finance to His Majesty King Charles III during his visit to the island.
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Winner of Institutional Asset Manager’s Best Offshore Funds Domicile of the Year 2024.
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Winner of European Captive Review’s European Domicile of the Year 2024.
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Winner of WealthBriefing’s International Finance Centre – Communication Strategy or Thought Leadership (Europe) 2024 award at the Wealth for Good Awards.
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Guernsey remains Europe’s premier domicile for captive insurance.
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Guernsey Finance represented the island at the Labour and Conservative Party conferences, demonstrating the island’s economic contribution to the UK to 350 plus new MPs including Tulip Siddiq and Ed Miliband.
