Select a region
Jersey has slipped in the ratings of nearly 100 global financial centres - and its reputation could be the problem.
Despite placing in the top 20 in the 2012 Global Financial Centres Index, which judged 96 centres on business environment, workforce quality and reputation, Jersey has since plummeted in the rankings, this year placing 39th.
While this position was actually one higher than the previous ranking, Jersey’s overall rating fell by 21 points. The island was instead buoyed by other jurisdictions having their ratings sink more dramatically.
Part of the issue could be what the Index branded a “reputational disadvantage” – Jersey placed within the bottom 15 for reputation.
It was also labelled an “unpredictable centre” – one more easily shaken by external factors.
Pictured: Jersey was found to be an "unpredictable centre".
But despite these setbacks, the island maintained a hold in the top 10 Western European Centres, coming above Madrid, Stockholm, Edinburgh, Glasgow and Amsterdam. Guernsey did not place in the list, having also suffered a drop in both rank and rating.
The sister island came in 41st place last year, but this latest assessment knocked it out of the top 50 altogether to 53.
Overall, London came out on top, followed by New York, Hong Kong, Singapore and Tokyo.
Jersey Finance Chief Executive Geoff Cook described the Index as a “useful general benchmark” but felt that it was “difficult to draw any firm conclusions from it.”
Pictured: Jersey Finance's Geoff Cook was not perturbed by the latest Index's findings.
He added: “It’s positive to note Jersey has risen a place in the rankings and now features in the top ten centres in Western Europe. However, the current environment is very changeable and, if anything, these rankings reinforce just how important it is to tell our story to give investors some much needed certainty and clarity.
“We have a good story to tell. Funds business is at an all-time high, we are seeing an uptick in new business from overseas markets, and firms here are predicting significant job growth over the coming years. All that is precisely because Jersey provides a stable and supportive environment for high quality cross-border activity.”
The news comes after a turbulent year for the island following the Paradise Papers revelations, which shone a spotlight onto Crown Dependencies. Their potential role in tax losses to HMRC are due to be probed by a UK Treasury subcommittee led by Labour MP John Mann, who yesterday authored a Guardian column that described tax havens as "a stain on Britain."
Comments
Comments on this story express the views of the commentator only, not Bailiwick Publishing. We are unable to guarantee the accuracy of any of those comments.