Guernsey needs to ensure its voice is heard as the financial services market becomes more saturated and competitive, industry has been told.
Finance is the biggest driver of the island’s economy, employing around 5,900 people and making a contribution to GDP of some £1.3bn annually.
But recent analysis has shown the island’s economy is stagnant while Jersey, driven by significant growth in finance and particularly in its banking sector, is on the up.
Guernsey Finance chief executive Rupert Pleasant told those at St James for its annual Industry Update that there was no denying that the outlook for the island’s financial services industry is challenging.
“We face significant headwinds, both internally and externally. There is much outside of the control of the agency, but we work tirelessly for the island and often provide results that punch well above those of our competitors.
“The purpose of the agency is to raise and maintain the profile of Guernsey’s finance sector and its products and services, and our aim is to preserve and enhance the prosperity of Guernsey for future generations.
“We sometimes get criticised for allegedly sugar coating the state of the nation.
“Let me be clear, the role of Guernsey finance is to promote and connect Guernsey as a leading international finance center into our key markets. We are a promotional agency. The reason the agency exists is to promote and share the many positive news stories coming out of Guernsey, and we also act as a shield when issues need clarification. So we are doing our job.”
Mr Pleasant said a recent GFSC update showed there was much to be positive about. The regulator had processed 600 applications in 2024, which was indicative of a healthy level of economic activity, he said.
“Fundraising is more challenging. But despite this, many substantial new funds were launched in 2024. There were 50 new funds, plus additions to existing funds, and 43 new investment licenses. The insurance sector also saw more than 50 new entities, that is licenses or cells and the 2024 statistics suggest that the fiduciary sector remains in robust health, with Guernsey banks continuing to prosper.
“To uphold our well earned reputation as a respected international finance center, we must continue to promote and connect Guernsey in our chosen key markets.
“As more jurisdictions enter the financial services market, it becomes more and more saturated and competition naturally becomes fiercer.
“We must ensure that Guernsey’s voice is heard over the noise of the crowd. While individual firms will conduct their own marketing initiatives, while 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 favor one jurisdiction over another.”
In 2024, Guernsey Finance appointed its first business development representative for the north of England, Rowan Stone.
It also opened an office in central London, close to the heart of Westminster to facilitate the work we do promoting Guernsey to MPs, civil servants and industry leaders.
They also attended the Labour and Conservative Party Conferences.
“Guernsey has strong historical links to the UK, and we’re proud to be part of the British family, ensuring close ties and a positive working relationship with the new UK Government continues to be a priority for us, which was demonstrated by the report we commissioned last year showing how Guernsey’s financial services expertise is aligned with several UK policy priorities such as infrastructure funding, regional investment and the transition to net zero.”
Guernsey-based funds channel £57bn of investment from around the world into the UK economy. This has increased by 14% year on year since 2020.
Guernsey Finance chairman Lyndon Trott will stand down from the role at the end of March having been in the role for nine years.
He will be replaced by Paul Sykes.