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JERSEY WINS MENA AWARD
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Jersey has been named Best International Finance Centre at the eighth annual WealthBriefing MENA Awards, for the fifth year in a row. The awards recognise companies, teams and individuals that have demonstrated innovation and excellence in serving the Middle East and North Africa market. Joe Moynihan, Chief Executive Officer of Jersey Finance, accepted the award at a ceremony held on 10 November at the Sofitel Dubai Downtown.
In addition, JTC won the Independent Trust or Fiduciary Company category, while Ocorian was named Best Trust and Fiduciary Company with Headquarters outside the MENA Region. In addition, Standard Chartered won the Most Innovative Wealth Management Model award.
GFSC RAISES FEES
The Guernsey Financial Services Commission has announced plans to increase licence fees paid by firms from 1 January 2022 by 7.6%.
In July, a Commission consultation paper on fees included four main proposals: • An overall fee increase of 10.1% for all sectors • A restructuring of fees for the investment sector • Changes arising from the update to most of the sectors’ laws following the Revision of Laws project • Creating a cap for pension scheme fees. Given the higher than expected level of authorisations so far this year, the Commission said it could proceed with a 7.6% increase rather than the 10.1% on which it consulted.
It intends to restructure the fees in the investment sector so that licensees requiring greater supervisory attention pay a licence fee based on the size of the firm. An upper cap will also be introduced on the level of fees charged per member in a pension scheme to 7,500 members. This is in response to feedback that the previous fee structure discouraged larger pension schemes from considering Guernsey as a costeffective jurisdiction.
OGIER PAY GAP REPORT
Ogier has published its pay gap data – the difference between the average earnings of men and women. It does not relate to equal pay, which concerns paying men and women equally for the same role and work.
While compulsory pay gap reporting has been a requirement for businesses of 250 people or more in the UK since 2017, none of Ogier’s home jurisdictions have similar requirements.
Ogier’s report presents data on the firm’s overall gender pay gap, and breaks down pay gaps at different seniority levels. The data shows Ogier’s gender pay gap is a consequence of there being fewer women in senior positions at the firm.
HSBC EXPAT EXPLORER SURVEY
HSBC has published its 14th annual Expat Explorer study of more than 20,000 people who live and work abroad. This year’s survey indicates that 65% of expats feel optimistic about the year ahead despite the volatility of the past 18 months. The key reason for optimism is expats’ hope of living ‘normally’ again (75%), with 61% feeling positive about potential quality of life. Expats in Taiwan are the most optimistic (85%), followed by those in Australia, New Zealand and Vietnam (all 83%). Overall in the study, which is managed by Channel ▼ 8 november 2021 - january 2022
Done Deals
Appleby has acted as Jersey counsel to SparkChange, a provider of carbon investment products and data, on the launch of an exchange traded commodity that gives investors exposure to regulated EU carbon allowances without needing to build complex, costly infrastructure. The Appleby team comprised Jersey Managing Partner James Gaudin and Senior Associates Paul Worsnop and Gemma Whale.
HSBC’s Guernsey commercial banking team has supported the Guernsey Recycling Group (GRG) with a sustainably focused funding structure to aid its growth strategy. Based in Guernsey, GRG also operates in Jersey, the UK and the Cayman Islands. It specialises in waste management solutions for island economies, as well as the disposal of hazardous and liquid waste. The Green Loan scheme, introduced in the Crown Dependencies by HSBC last year, offers corporate customers the opportunity to borrow money to support environmental projects.
Lawyers from Carey Olsen’s corporate team in Guernsey have advised private equity firm 7RIDGE on its acquisition of Trading Technologies International. The deal is expected to close by the end of the year. Working with lead counsel Proskauer, the Carey Olsen team was led by Partner David Crosland, assisted by Senior Associate James Cooke and Associate Oliver Orton.
Walkers’ Jersey team has advised digital-first care company Babylon Holdings on its merger with Alkuri Global Acquisition Corp, a special-purpose acquisition company (SPAC). The company will continue to operate as Babylon. Walkers advised on the Jersey corporate and regulatory aspects of the deal and issues around becoming a listed public company. Partner Jonathan Heaney and Group Partner Dilmun Leach led the team.
The Guernsey team at Ogier has advised Disruptive Capital on the establishment and listing on Euronext Amsterdam of Disruptive Capital Acquisition Company, a Guernsey incorporated SPAC – the first SPAC on Euronext Amsterdam to be listed and traded in pounds sterling. Disruptive raised £125m. Partner Craig Cordle led the team alongside Partner Bryon Rees.
Investec Bank (Channel Islands) has been part of an international group of lenders for the redevelopment of a 1.2 acre freehold site in Camden, inside the Kings Cross Knowledge Quarter. The £90m debt finance deal for W.RE will enable the developer to create three buildings totalling more than 250,000 sq ft. The project, known as St Pancras Campus, will include office, light industrial and retail space, along with 33 new homes. The commercial elements are already 50% pre-let. n
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MERGERS AND ACQUISITIONS
Guernsey software business Fusion Acusoft has merged with UK-based Vega Solutions to form a technology group providing solutions to financial services businesses in the Channel Islands and beyond. The new business will offer core software solutions to banks, trust and company administration, fund administration and pension administration organisations. The merged business, which has a Channel Islands client base of 150 organisations in 20 jurisdictions, has offices in St Peter Port and Reading in Berkshire.
Vistra has completed its acquisition of Australia corporate governance, accounting and company secretarial services firm Leydin Freyer. The deal doubles the size of Vistra’s operations in Australia and expands its footprint across the country’s two largest cities, Sydney and Melbourne. Completion of the buy, announced in September, also offers new opportunities to Leydin Freyer clients and colleagues as they look to expand around the world. Leydin Freyer will be rebranded under the Vistra brand.
MJ Hudson Group, which provides services to the asset management industry and operates from Jersey and Guernsey, has received full regulatory approval from the Guernsey Financial Services Commission for its acquisition of Saffery Champness Fund Services (SCFL). The acquisition of SCFL, a Guernsey-based fund administration business, was announced on 23 July.
JTC has acquired London-based perfORM Due Diligence Services. Launched in 2019, perfORM was set up as an operational due diligence (ODD) business to provide solutions to asset allocators across private credit, private equity, real estate, infrastructure, hedge, crypto and digital assets and long-only funds. perfORM will retain its brand as an independent ODD service provider and will operate as a JTC Group company.
Guernsey-based start-up Tenn Capital has announced a funding facility and joint venture partnership with funds advised by Elliott Advisors (UK) and its affiliates. Elliott will provide up to £300m to build Tenn Capital’s proposition, which will allow Tenn to deliver its lending mandate on a global scale. Tenn provides short-term loans secured against residential real estate.
Ocorian has finalised its purchase of Nordic Trustee, which provides trustee and agency services for bonds and direct lending in the Nordic region. Nordic will still be led by Cato Holmsen and be run as an independent bond trustee and loan agent with offices in Oslo, Stockholm, Copenhagen and Helsinki. n Islands-based HSBC Expat, the Crown Dependencies have risen up the rankings of places to live and work into the top 10, with Guernsey fifth and Jersey sixth.
The study suggests locations where a sense of stability has been maintained ranked highly. Almost all expats in Australia, Switzerland and Jersey say their location will be a stable place to live in the next 12 months – Australia (92%), Switzerland (92%), Jersey (90%).
Expats’ desire to live and work abroad has not been dimmed by the pandemic. Most plan to stay in their host location for the foreseeable future – 80% intend to stay a year at least and only 7% are planning to move.
The study also highlights some of the challenges expats have faced in the pandemic – 63% have been stopped from travelling abroad for business and 90% could not see family or friends in their home nation. • To download the survey, visit www.expat.hsbc.com/expatexplorer-results/
TMF REPORT: PRIVATE DEBT
TMF Group and Private Equity Wire have launched the 2021 Global Private Debt Insight Report on how private debt managers view opportunities across the asset class.
For distressed debt M&A opportunities, the challenges of Covid mean private debt firms appear to be waiting for the dust to settle while assessing the impact of the pandemic. There is also a sense that deals will emerge in the next couple of years, but will require managers to be laser-focused as they seek the best investments.
Of the 75 managers surveyed, many feel proprietary networks will be a key factor for investors as they assess distressed debt managers. Seven out of 10 said they would be relying on proprietary networks as they take a bottom-up approach to source deals, with only three out of 10 saying they would rely on bank-led opportunities.
The study also confirms that ESG is becoming a bigger focus, yet despite increased attention at the pre-investment stage, fewer than 25% of private debt investments are expected to be excluded for failing to meet ESG criteria.
One big concern for direct lending managers is that the sponsor-backed mid-market is so crowded. This could lead to managers with strong proprietary networks and research capabilities seeking more attractive opportunities to finance founder-owned and orphaned companies in the lower middle market.
IOD DIRECTORS OF THE YEAR
The Institute of Directors in Guernsey has announced three winners for this year’s IoD Director of the Year Awards: Alan Bates, Chief Executive at Guernsey Electricity; Olly Duquemin, Chief Executive Officer at Resolution IT; and Alan Roper, Managing Director at Blue Diamond Group.
Alan Bates won the Public Sector Award, Olly Duquemin the SME Award and Alan Roper the Large Business Award. n
Sponsored content Jersey: a gateway to Europe for Sovereign Wealth Funds
Over the last two decades, there has been a significant increase in Sovereign Wealth Funds (SWFs). Indeed, at the end of 2019, SWFs maintained some US$8trn in assets under management1. This is more than double the value in 20072 .
As the volume of global investment has increased, SWFs, particularly from Asia, the Middle East and North America, have come together to form ‘super funds’, that have the financial weight to be invested globally across multiple asset classes.
When it comes to managing SWFs in European markets, Jersey, as an internationally respected financial hub, remains a strategic base that provides a gateway to the continent.
Global account visibility One Jersey firm working with SWFs around the world is Ocorian, which provides corporate administrative services in a multitude of countries.
Ocorian uses its global network of offices to support SWFs at both ends of their investment. As part of that support, Ocorian often works closely with HSBC to ensure its clients have the necessary bank account structures in the relevant markets.
“It’s great for us to work with a bank like HSBC, that understands Sovereign Wealth Funds. Predominantly, HSBC will have a relationship with the client in their home jurisdiction. This then assists us in setting up accounts in that jurisdiction,” explains Nick Terry, an executive director at Ocorian.
Why Jersey? Jersey has been a leading international finance centre for almost 60 years and benefits from a long history of political, economic and fiscal stability; bringing you peace of mind and a high degree of certainty for the future. With a forward-thinking approach, the Island is at the forefront of wealth management, funds, capital markets and banking3 .
Jersey’s regulatory framework is one of the strongest in the world and it is designed to bring clarity and transparency to the world of finance. The Island also has a highly skilled workforce and key stakeholders work together to develop products and services4 .
Why HSBC? HSBC in Jersey has a strong track record in supporting the needs of Sovereign Wealth Funds, whether that’s working with the funds directly or through a Corporate Service Provider.
“I’m extremely proud of our proven ability in managing Sovereign Wealth Funds and the reputation we’ve built in such a highly competitive market,” says Aline Ayotte, Head of Commercial Banking, HSBC Channel Islands & Isle of Man.
“As a trusted, well-established financial institution in Jersey, we have developed key local relationships to deliver timely, best in class solutions for SWF management and investment. This, combined with access to HSBC’s global network and digital capabilities, allows us to leverage a breadth of expertise across the bank and to consistently deliver for our customers.”
HSBC is also able to provide visibility of global accounts from one central, digital platform, making it straightforward for clients to manage accounts in home and investment markets simultaneously.
To find out more about how HSBC can help, contact your relationship manager or visit: business.ciiom.hsbc.com/sovereign-wealth-funds to view the video on Sovereign Wealth Funds in Jersey
1 https://internationalbanker.com/finance/sovereign-wealth-technologys-new-growth-engine/ 2 https://www.worldfinance.com/markets/state-run-sovereign-wealth-funds-continue-to-grow-in-power-and-influence 3 https://www.jerseyfinance.je/jersey-the-finance-centre/ 4 https://www.jerseyfinance.je/jersey-the-finance-centre/ Issued by HSBC Bank plc, registered in England and Wales number 14259. Registered office 8 Canada Square, London, E14 5HQ. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. HSBC Bank plc, Jersey Branch is regulated by the Jersey Financial Services Commission for Banking, General Insurance Mediation, Fund Services and Investment Business. HSBC Bank plc, Guernsey Branch is licensed by the Guernsey Financial Services Commission for Banking, Insurance Intermediary and Investment Business. In the Isle of Man HSBC Bank plc is licensed by the Isle of Man Financial Services Authority. ©HSBC Bank plc 2020. All Rights Reserved. 211005/NN/316
