Jersey Financial Services Commission Quarterly Report

The Jersey Financial Services Commission has today, 10 March 2005, issued its quarterly report for the period 1 October 2004 to 31 December 2004.

Headlines:

• Bank deposits increased by £8.9 billion during 2004 to £158.1 billion.

• The value of collective investment funds managed in the Island ended 2004 at £104.1 billion, an increase of £1.6 billion over the 2003 year-end figure.

• The number of collective investment funds and COBO funds rose during 2004 from 602 to 833.

• The total value of funds under management (Class B of the Financial Services (Jersey) Law 1998) stood at £34.4 billion as at 31 December 2004. The increase in funds under management during 2004 was £3.3 billion (10.6%).

• Company incorporations for the whole of 2004 totalled 2439, an increase of 13.1% over 2003.
  

Bank Deposits
There was a decrease in Jersey bank deposits during the quarter of 0.64% (£1.0 billion). The main reason for this was a drop in the reported sterling equivalent of the foreign currency on deposit with Jersey banks. Although during the quarter there was actually an increase in the amount of foreign currency placed on deposit, the aggregate reported sterling equivalent fell due to a substantial weakening in the US Dollar during the quarter (the majority of the Island’s currency deposits are in US Dollars).

The 2004 year-end deposits figure was £158.1 billion; this represents an increase of £8.9 billion (5.96%) during 2004.

32.5% of bank deposits are held in sterling and 67.5% are held in currencies other than sterling.

During the last quarter of 2004, the number of banking licences dropped from 55 to 51. This drop was the result of licences issued to certain Cayman-based banks, which invoked disaster recovery plans following the impact of Hurricane Ivan (as referred to in the September 2004 quarterly report), being relinquished.

The number of banking licences at 31 December 2003 was 55. The drop to 51 by the end of 2004 is a reflection of consolidation in the banking sector.

Company incorporations
The total number of incorporations during the December quarter was 620, an almost identical figure to that in the corresponding quarter of 2003.

Incorporations for the whole of 2004 totalled 2439 an increase of 13.1% over 2003. The increase was primarily due to changes in UK legislation relating to stamp duty which came into force during the year, and increased business activity in the Island.
The number of ‘fast track’ incorporations for the quarter was 258 and the number of normal company incorporations was 362.

During 2004, against their self-imposed target of 95%, the Registry recorded a 98.8% rate for normal two-day incorporations and a 97.3% rate for fast track incorporations.

Investment Business
Total funds under management (Class B of the Financial Services (Jersey) Law 1998) stood at £34.4 billion at 31 December 2004.

The comparative figure for 31 December 2003 was £31.1 billion. The increase in funds under management during 2004 was therefore £3.3 billion (10.6%).

As at 31 December 2004, the total number of clients of investment managers was 19,989.

Conclusion
David Carse, Director General of the Commission, commenting on the quarterly statistics said today, ”The increase in business volumes in all sectors during 2004 reflects the improving global economy and the continuing confidence that investors and financial services businesses have in Jersey. “

To read the press release in full, please visit the press section of www.jerseyfsc.org