Why Guernsey is a jurisdiction of choice for offshore investing

By: Jurgens Fourie, Regional Manager, Momentum Wealth International

“Guernsey is a leading offshore investment centre that offers first-class infrastructure for the structuring, management, administration and custody of clients’ investments, offering valuable client protection,” says Jurgens Fourie, Regional Manager, Momentum Wealth International.

The jurisdiction in which an international investment platform conducts its business is an essential part of any due diligence.

One of the reasons why Momentum Wealth International is a compelling international platform is that clients have peace of mind knowing that their money is safe.

The Momentum Wealth International platform was launched in Guernsey in 1999 as a true offshore investment platform for both South African and international clients.

Guernsey is a leading offshore investment centre that offers first-class infrastructure for the structuring, management, administration and custody of clients’ investments, offering valuable client protection. This means that investments remain domiciled in Guernsey, regardless of where a client currently lives or decides to live in the future. Further protection is added through our nominee structure, where money is safely held in a separate segregated nominee.

Guernsey as a financial jurisdiction is becoming more and more relevant as a global financial centre. Over the past 50 years, it has established itself as an international finance centre with many financial entities establishing firm roots there.

It is important to know that Guernsey is not part of the United Kingdom, but a British crown dependency.  Its connection to the United Kingdom is through the Crown and not Parliament. It is self-funding and self-governed with its own legislature that allows it to determine its own laws, which also includes taxation.

There are more than 30 international banks on the island, and in terms of risk management solutions, Guernsey has a proud record of innovation and expertise. Investment management providers, from subsidiaries of international investment houses to independent boutiques, and open and closed-ended funds are well represented. Over a thousand funds are domiciled in Guernsey, with assets under management of GBP265 billion. Guernsey’s domiciled funds are used for cross-border distribution across all four corners of the globe with South Africa being a particularly popular jurisdiction for Guernsey funds. Guernsey provides high net worth individuals and their families with legal and robust tax-efficient structures for asset management, succession planning and tax planning.

The Guernsey finance industry is regulated by the Guernsey Financial Services Commission. The regulator has an excellent reputation for being flexible, pragmatic and has an open-door approach to regulation that places it ahead of other jurisdictions.

Guernsey takes its obligation in the fight against money laundering and terrorism financing very seriously, meaning they are compliant with the Financial Action Task Force (FATF) recommendations. Guernsey is also a member of the Organisation for Economic Co-operation and Development (OECD) white list established in 2009. This membership means that they are a jurisdiction that has implemented the internationally agreed tax standard and is therefore not considered to be a tax haven. Guernsey has been assessed by the OECD global forum for tax transparency and the exchange of information for tax purposes, and recently implemented new substance requirements, further enhancing its reputation as a tax transparent country. And Standard & Poor’s has rated Guernsey as AA minus with a stable outlook.

Momentum Wealth International offers true offshore investment solutions and believes in the power of partnerships, choice, transparency, simplicity and the importance of financial advice. The power of partnerships is deeply embedded in our DNA. Being a small company in Guernsey, we work with our teams in Momentum Investments to develop our operating systems and website with Momentum Global Investment Management in London to deliver world-class investment solutions through model portfolios or our fund structures, as well as with leading global service providers such as Northern Trust and Citibank.

And of course, at the forefront of our thinking is creating meaningful partnerships with intermediaries in South Africa and in select markets across the globe, whether you are a large corporate independent financial adviser, a general practitioner or specialist investment professional, Momentum Wealth International can partner with you.

Clients have access to more than 1 400 investment funds and exchange traded funds on the platform and the ability to include model portfolios and personal share portfolios.

We know that choice can be daunting. Therefore, we offer a wealth of information through our website, from the latest fund fact sheets to sophisticated easy to use modelling tools from our partner Morningstar, enabling you to construct an investment portfolio tailored to the needs of your clients.

With us, investing is personal. We understand that the world for advisers is changing and that it is becoming more complex from a regulatory perspective. Partnering with an investment platform that eases the financial burden is essential when you have to focus on growing your business and addressing the needs of your clients.