Guernsey’s place in global wealth management

We Are Guernsey’s annual Private Wealth Forum took place in London last week, exploring the role Guernsey, and other international finance centres, can play in a global approach to business and wealth management. One of our Guernsey Directors, Kerrie Le Tissier, acted as moderator of two panels at the sell-out event, steering discussions around the themes and topic of ‘Changing Families in a Changing World.’

The Forum set the scene of the current private wealth environment, a borderless world with family members based in all corners of the globe adopting very personal and differing opinions and value systems. The growth of the ‘non-nuclear family’ is greatly impacting the industry with implications on investment and decision making. In addition, there are the increasing concerns around ESG, sustainability and socially responsible investing, driving wealth managers to ensure they are well prepared for changing family dynamics and generational handovers.

In response to this, the headline of the event was that Guernsey can deliver political and economic stability in an uncertain world. That private wealth structures are portable is of vital importance now, with Guernsey offering stability, a whitelist rating by the OECD and a gateway to portable products. Guernsey has unique and flexible structures, such as foundations and purpose trusts, that can offer families structuring opportunities that they can’t access onshore. In evidence of this, Guernsey professional advisors are encountering more complex family dynamics than ever before, with a strong focus on succession planning at an early stage. As well as using a number of global advisors, other recommendations from attendees were that families develop advisory boards, where professionals examine local assets and trust structures, to enable a worldwide strategy that is able to deal with unexpected events.

Kerrie Le Tissier said: “It is an exciting time to be in the private client industry in Guernsey, with the jurisdiction gaining a lot of global recognition due to its unique structures and innovative approach. At HIGHVERN we are always looking at how a pan-Channel Island offering could help our clients and approach wealth management solutions as a singular group rather than a collection of jurisdictional offices.”

The Forum also outlined the growing trends of sustainability, reputation, technology and being a good global citizen, all of which are impacting the evolution of the private wealth sector. An attendee from a London law firm noted that younger generations appear to have less of an interest in wealth, and more of an interest in doing good things. Panellists agreed that integrating sustainability into portfolios has now become the default to accommodate the changing views of a younger generation, with some noting that there is an acceptance that the next generation will forgo some of the financial upsides for more impactful investments. To connect with these clients, practitioners need to adjust their working practices and adapt management styles to speak their language.

Kerrie commented that: “HIGHVERN is very aware that the next generation of wealth have different priorities when it comes to management of their wealth and want to play a more active role not only in management structures, but also in how these give back to the world and wider community. Our services must take account of these growing trends and ensure that we are aligned with our future clients.”

The second panel of the Forum looked at the changing world, market trends and the impact of stagflation and worldwide uncertainty. A real regime change in monetary policy has highlighted the need for client-centricity, digital tools and advancement that can diversify risk by moving money across different jurisdictions. Whilst there is concern about global dislocation, Guernsey as a jurisdiction continues to be viewed as a safe haven.

Kerrie has seen an increase in the use of Guernsey vehicles as part of clients’ international structuring solutions. “The Channel Islands will often be identified as a suitable offshore services location offering a high quality of service provider and a consistent regulatory environment which gives our clients surety and confidence for their investment strategies and can be utilised as part of a wider global approach.”

The Forum was attended by Kerrie Le Tissier, Richard Joynt and Daniel Jaffe from HIGHVERN.