View from the Bridge
Investing via the Crown Dependencies and the Changes “Substance” Will Bring – October 2018
Over the last 10 years The Crown Dependencies: Jersey, Guernsey and the Isle of Man, have in their own ways sought to distance themselves from the label of ‘tax havens’. Jersey and Guernsey in particular have determined to separate themselves from other offshore jurisdictions. They have done this by distinguishing themselves as major asset management and wealth centres alongside Luxembourg, Zürich or Geneva, as well as by political dialogue and by being first adopters of change as it has come about, whilst all the while recognising the need to maintain a healthy and vibrant finance industry.
Panama Papers, Paradise Papers, Data leaks and other revelations have not negatively affected the Channel Islands; indeed the opposite has been true where investors have seen the Channel Islands as secure and a safe place to invest through. These revelations have been met with changes to the way the Channel Islands operate and communicate. Each has led to developments (Common Reporting Standard, Base Erosion Profit Sharing and Substance). All have been accompanied with more and more calls for transparency. Although much of this, particularly in the siren cries for public registers of ownership, are more political than practical.