Jersey Financial Services Commission Quarterly Report

The Jersey Financial Services Commission has issued a quarterly report for the period 1 October 2001 to 31 December 2001.

Highlights
The report highlighted another rise of 13.8% in the value funds compared with 31 December 2000, in addition to the continual rise of bank deposits, which rose during the quarter to £132 billion - an increase of 12.7% on the same date last year.

Funds
As of the 31 December 2001 the value of funds stood at £ 103 billion. This is an increase of 9.1% since the last quarter. Compared with the same quarter last year, the value of funds have increased by 13.8%. The increase has reversed much of the decline that took place in the third quarter of 2001, particularly after the events of September 11th. The number of funds for this quarter have increased from 296 to 327. Sub funds are at 1591, an increase on the figure for 31 December 2000, but a small decline on the previous quarter.

Bank Deposits
Jersey bank deposits have risen to £132 billion. This is a rise of 12.7% against the same quarter last year. It represents an increase of 2.4% against the last quarter. The number of banking licences has decreased from 70 in the first two quarters of 2001 to 64. This can mainly be attributed to restructuring and mergers.

Investment Business
The total funds under investment management (class B of the Financial Services (Jersey) Law 1998) stands at £32 billion. When compared to the same quarter last year, this shows a decrease of 3%. However, it represents an increase of 1.3% against the last quarter. As at 31 December 2001, the total number of clients of investment managers was 23,063.

Other news
The number of security issues by Special Purpose Vehicles (SPVs) authorised during this quarter is 114…Some issuers of SPVs are changing their practices - using covered warrants instead of securities issues.

Commenting on the figures Richard Pratt, Director General said: "There clearly remains some continuing effect of the terrorist attacks in the US on September 11 last year and its effect on the markets. Nevertheless the continued steady inflow of investment through the Island remains highly encouraging."

For a full version of this press release, please visit www.jerseyfsc.org