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An offshore jurisdiction provides a third country location from which Asian families can protect and even enhance their wealth for the benefit of future generations, and Asian companies can establish entities for investing both out of or back into their home region.

However, what we are finding is that many in Asia still equate offshore with only those jurisdictions in the Caribbean, and in particular, the British Virgin Islands (BVI) and the Cayman Islands.

Guernsey is recognized by international organizations as meeting robust standards in terms of corporate governance, regulation and tax transparency. These attributes have gained added significance in the wake of the global financial crisis and provide extra comfort to both clients and their advisers.

In addition, it is our understanding that while the initial, upfront costs of doing business in Caribbean jurisdictions may be less than using Guernsey, in fact, over the longer term, the expense is likely to be broadly comparable.

The Guernsey offering during the last 50 years, Guernsey has established itself as a leading international finance center.

Today, the four main pillars of the Island’s finance industry are:

* Banking – There are 33 licensed banks holding more than £103 billion ($164 billion) worth of deposits;

* Fiduciary services – There are 154 licensed fiduciaries, ranging from multinational organizations to employing more than 2,000 members of staff;

* Investment funds – There are 50 fund managers, administrators and custodians with total net asset value of funds under management and administration of £271 billion ($430 billion); and

* Insurance – The Island is the largest captive insurance domicile in Europe and number four globally.

These sectors are supported by a network of professional services, including multi-jurisdictional law firms and global accountancy practices. Guernsey firms provide a wide range of products and services at the highest standards to clients from around the globe, including Asia.

Guernsey Finance, the promotional agency for the Island’s finance industry, has long recognized that there is significant opportunity to increase business from Asia given the growth of private and corporate wealth in the region.

Guernsey’s expertise within the funds industry is being utilized by the Chinese government and the country’s fund managers to enhance the way its own funds sector is operated and regulated.

Investment funds center Guernsey has a strong heritage in providing a domicile for corporate entities acting as investment vehicles and especially funds.

This experience means that the Island has built a wealth of expertise and first class infrastructure for servicing not just traditional funds but also alternative asset classes.

Managers with a presence in Guernsey include major names such as Apax, Permira and Terra Firma. Other promoters of Guernsey funds include Better Capital, Coller Capital and KKR. Administrators based in Guernsey range from specialist boutiques to global players such as HSBC, JP Morgan, Northern Trust, RBC and State Street, which can also act as custodians.

The opinions expressed do not constitute investment advice and specialist advice should be sought about your specific circumstances.

Published on our website on January 22, 2013