The City Edition of Businesslife is now available online.
Although the UK economy has been hit hard by the fallout of the coronavirus pandemic, the City of London and the UK in general remain a “secure and stable jurisdiction, and the Channel Islands will continue to act as a major conduit to ensure capital is invested there”.
That’s according to Joe Moynihan, Chief Executive of Jersey Finance, speaking in the special City Edition of Businesslife, which explores a number of areas where the Channel Islands and the City of London are working together for continued success.
Jon Watkins, Editor-in-Chief of Businesslife, said: “Given their close proximity, the Channel Islands and the City have long held a close and prosperous relationship.
"Of course, like all other jurisdictions, both have faced new challenges as a result of the coronavirus pandemic. However, as our examination of trends in a variety of financial sectors finds, that close working relationship and understanding of each other’s strengths has put both in a strong position to recover and thrive.”
Building a response
One of the sectors we explore in depth in this issue is the real-estate sector. Investment in UK property is big business in Jersey and Guernsey.
The Monterey Insight Jersey Fund Report 2018 estimated that, even back then, there were already more than 100 Jersey-based funds focusing on UK real estate, with a combined net asset value of more than $42bn. And, as our article finds, the appetite to continue that relationship post-coronavirus remains strong.
In fact, the Channel Islands are becoming an increasingly attractive pathway for international investors looking to enter the UK property market.
As one expert told us: “Jersey and Guernsey each offer a stable jurisdiction; they each have a recognised rule of law, as well as elected parliaments and judicial systems that bring freedom and independence.
"There’s a very high standard of regulation, which is important for investors having confidence in any jurisdiction, and the strong level of compliance here means that investors can be sure the money that flows through the Channel Islands is legitimate.”
Emerging opportunities
Another area of opportunity for both the City and the Channel Islands is the continued rise in popularity of green and sustainable investing.
While competition for business will always exist between jurisdictions, the consensus view is that, by working together to face cross-border challenges, the City and the islands could further increase the flow of funds between them – in turn, enhancing “the connectivity between the two”.
At the heart of this is work taking place in the Channel Islands on verification to counter ‘greenwash’ and shore up the sector for the long haul – a move that is putting the islands at the forefront of the sustainable investing movement and enhancing its appeal to jurisdictions such as the City, experts tell us.
Elsewhere in this issue…
We also look at:
• A roadmap for the UK’s economic recovery
• How collaboration in the fintech sector is delivering results for the City and the Channel Islands
• How London can speed up the move towards gender equality
• The appeal of the Channel Islands for nervous Hong Kong investors
Click here to view our 2020 City Edition online.
The physical version of the magazine will be available from its usual distribution points shortly.