Jersey-based business consultancy Gibson Strategy has released the findings of a survey it carried out in April across Jersey and Guernsey, assessing the impact of Covid-19 on private wealth professionals.
Key points from Jersey
• Business disruption – 89% of contributors to the survey indicated that their business had been affected by the Covid-19 pandemic
• Business continuity planning – Jersey private wealth practitioners were generally well prepared for a disruption to business, with 67% planning for a global financial crisis and 37% having considered the possibility of a pandemic situation
• Business continuity in action – 83% of respondents reported remotely working from home, with 17% working from both home and the office
• Stock market and credit facilities – 3% of respondents reported a significant impact on business by the market crash at present, but 33% indicated they had been affected ‘a great deal’
• Government assistance – 7% of respondents said they had required assistance from local government, with 7% of companies requesting deferment of social security payments and almost 11% requiring assistance with employee salaries
• Impact of Covid-19 on private clients – With 96% of clients taking the direct hit, private wealth professionals in Jersey are bracing themselves for a reduction in income; 82% of clients’ investment portfolios have been affected and their net worth reduced, but many are long-term investors and there has been little or no impact
• Post-pandemic – 79% of respondents believe Covid-19 will result in permanent changes to how they work, with staggered office/home working, flexible hours, increased use of technology to enable remote working and video calls with clients and colleagues; 82% believe business travel will decrease; 63% expect to see a reduction in face-to-face client contact.
Key points from Guernsey
• Business disruption – 91% of private wealth professionals surveyed have been affected by Covid-19
• Business continuity planning – Almost 93% of respondents had plans in place, although the majority indicated they were not prepared for the speed and unforeseen disruptions of the pandemic
• Business continuity in action – More than 89% reported to be home working, with 7% working from both office and home
• Stock market and credit facilities – 21% of respondents had not seen any impact on business by the market crash at present
• Government assistance – 86% of businesses had not accessed any assistance from government, whilst 7% had applied for deferment of social security payments; more than 96% of companies have not needed to extend their credit facilities with their finance providers
• Impact of Covid-19 on private clients – Guernsey wealth professionals indicated that 86% of their clients have been affected by the pandemic
• Post-pandemic – 71% of service providers believe coronavirus will “undoubtedly” result in changes to how they work, with remote working and increased use of video meetings; 21% envisage an increase in costs; 80% believe business travel will decrease; 46% assume Covid-19 will result in a reduction of fees and 17% an increase.
• The Impact of coronavirus COVID-19 on the Jersey Private Wealth Sector can be found here
• The Impact of coronavirus COVID-19 on the Guernsey Private Wealth Sector can be found here