Richard Prosser, Group Director and Global Head of Private Client Services, Estera, replies:
THE private wealth sector in the Channel Islands is currently in very good health and last year was a strong year of growth.
While this underlying trend looks set to continue, the industry also faces a number of challenges.
Clients and their advisers may be in for a bumpy ride as share price volatility continues – making it challenging for advisers to produce above average returns. And uncertainty around Brexit only adds to the mix.
Increased transparency and substance requirements mean that the industry’s regulatory responsibilities remain high. These regulatory requirements also need to be balanced with client concerns over privacy, and advisers will have to continue to work with and educate clients on this matter.
On the upside, Jersey remains the jurisdiction of choice for many wealthy clients. We expect to see requests for significant new structures, which serve a number of different objectives for families and their wealth.
Owing to their size and scale these requests will tend to be complex and involve a raft of structures. Experience and the ability to manage complex structures and relationships with clients will count for everything.
As always, we will continue to assist clients with the transfer of wealth from one generation to the next, and this will bring opportunities. Succession planning will dominate the landscape, and those private wealth businesses that can cater for multi-generational needs will find themselves stealing an advantage.
Indeed, how we communicate and work with the next generation will be key. It is our job to maintain the integrity of the settlor’s wishes while also meeting the expectations of the next generation, which can be significantly different. As a result, providers that are able to work collaboratively with their clients will continue to prosper.
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