Jersey drops 12 places in global finance centre rankings
JERSEY has dropped 12 places in the rankings of top financial centres, with many financial experts feeling Brexit will leave the Island’s leading industry in a worse position.
The 26th Global Financial Centre Index, which is compiled by the London-based Z/Yen think tank every six months, has ranked Jersey as the world’s 59th finance centre.
The Island, which was ranked 13th in the list in 2009, was still well ahead of the other Crown Dependencies, Guernsey (92) and the Isle of Man (89), which also slid down the rankings by 17 and five places respectively.
Jersey lagged behind rival centres that are further afield such as Luxembourg (25), Cayman (30) and Bermuda (35).
A graphic in the report indicates that around 40% of the financial experts surveyed during the creation of the report felt that Brexit would negatively impact Jersey in the short term, with around 30% indicating that they thought there would be a similar long-term effect. Far fewer respondents predicted Brexit would benefit the Island, or other British financial centres, in either the short or long term. By contrast, Paris – the largest financial centre in the EU – climbed ten places in the index to 17th. London retained second position behind New York, but also saw its index score decline.
The report says: ‘The two leading UK financial centres in the United Kingdom (London and Edinburgh), are the two centres that respondents believe will suffer the largest negative effects, although these effects are seen to improve a little in the longer-term.
‘Respondents consider that New York, Hong Kong, and Singapore will benefit substantially from Brexit. In Europe, Frankfurt is considered likely to benefit most, followed by Paris, Luxembourg, Zurich, and Dublin.’
The report adds: ‘The British Crown Dependencies’ performance dipped, with the Isle of Man down five places in the rankings, Jersey falling 12, and Guernsey continuing its rapid decline in the index, dropping 17 places following its 15-place fall in GFCI 25.’
The report featured for the first time an index of leading Fintech, or financial technology, centres, with new technological breakthroughs expected to have an impact on the industry in the coming years.
Beijing and Shanghai were the leading Fintech jurisdictions, with London ranked sixth.
Jersey Finance, which represents the Island’s industry, were contacted by the JEP but declined to comment on the report.