Geoff Cook, chief executive of industry promoter Jersey Finance, said that the way the sector was perceived in the Island was ‘a great source of sadness’, given the ‘huge employment opportunities’ provided.
Speaking at a lunch organised by the Jersey International Business School, Mr Cook said: ‘Without this industry, Jersey would not look as it does.
‘Most people take their views from often poor negative headlines and since the financial crisis, globally the industry has suffered from a reputational problem.
‘But in Jersey we have had no stability issues, even though some of that negativity has stuck.’
Asked why some politicians and the ‘man on the street’ was not so enamoured with the finance sector, he said there was ‘a huge job to do’ to translate the industry for those who were not involved in it.
‘We probably need better research for Jersey as a community, but that is not easy to get at and is very complex.
‘People do not understand how there has been so much success in such a small place, how it can be world-class.
‘But neither do I understand what surgeons do.
‘Off Island, Jersey has an enviable reputation with the British government, strong improvement in Europe, across the Middle East, Africa and Asia.
‘We have done a lot there to build our reputation.
‘I feel we have got to put more effort into communicating at home.
‘This is an industry that people can be proud of.’
Mr Cook, who also sits on the City UK’s advisory Council and the CBI Trade Association Council, added that last year the total finance industry profits in Jersey soared by 25%, to £290m, with finance firms spending £350m in the local economy – roughly £1m a day.
‘The health of the finance industry is hugely important to the economy of Jersey, contributing 44% of the GDP and providing work and training for young people and underpinning the Island’s public services,’ he said.
Contrary to headlines in the national media, criminals were far less likely to to gain entry to Jersey than any other country, he claimed, referring to an Australian university research study in which a bogus company tried to deposit the proceeds of crime in various countries.
Whereas the worst performers were the United States, the UK and France, Jersey was the highest-performing.
‘They tried 25 times in Jersey and failed every time.
‘Transparency is a massive issue at the moment and we were in the first group of countries to sign up to the Common Reporting Standard.
‘That is the right thing to do – we do not want to support or aid tax evasion,’ he said.
Banks will stay in Jersey, say JFSC
BANKS in Jersey are expected to remain stable, despite changes to regulation in the UK and Europe.
Jersey Finance chief executive Geoff Cook says that although some jobs will be lost, none of the major banking groups with licences in the Island are expected to move away.
Presenting an update this week, Mr Cook said that globally, banks were now employing ‘hundreds of thousands fewer people’, driven by new standards that had made it difficult for them to make money.
‘Our banks generally are profitable, but they are asked to make a contribution to head office. Where they can manage with fewer people, they will do,’ he said.
In recent years the number of banks licensed in Jersey – currently 33 – has fallen slightly.
Mr Cook said that although new banks would be moving in – with a Middle Eastern bank currently in the process of negotiation – there would be some ‘trimming back’ of licences as banks consolidated their operations.
‘I do not think we will see the exit of any major players,’ he said, explaining that new UK regulation, such as ring-fencing, required retail branches to be separate from investment and wealth management.
Furthermore, Jersey was not bound by the same restrictions as those in the European Union, he said.
‘Every one of our banks has found a solution and is looking at evolving platforms such as asset management.
‘I am confident about the stability of the banking sector, although there will be a few bumps in the road first,’ said Mr Cook.
He added that although the mood in the Island’s industry was ‘bullish and confident’, the next ten years would see significant change in the number of international finance centres globally.
‘There are 42 at the moment and I think that will halve over the next decade,’ he said.
