The foundations of Guernsey’s modern finance industry can be traced back to the early 1960s when a clutch of merchant banks established operations on the island.

In June of this year, the Jersey Financial Services Commission (the "Commission") issued Position Paper No. 4 in relation to amendments to regulatory legislation. The primary legislation to which this relates is the Banking Business Law (Jersey) 1991, Collective Investments Funds (Jersey) Law 1988 (the "CIF Law"), Financial Services (Jersey) Law 1998 ("FSL") and the Insurance Business Law (Jersey) 1996 (together, the "Regulatory Laws").

The Guernsey Financial Services Commission (GFSC) in February 2005 introduced a 3 day approval process for establishing qualifying investor funds in Guernsey.

Guernsey’s investment fund industry is booming. The substantial growth that was a feature of 2005 continued throughout 2006, pushing levels of business to record highs and this has largely been driven by a surge in alternative asset classes, including hedge funds.

Europe’s role in the global investment fund market has become increasingly prominent. The introduction of alternative investment strategies has created a more competitive arena and, as a result, jurisdictions closer to the European market are increasingly becoming a more attractive platform for offshore investments.

In 2007 Guernsey’s finance industry is continuing from where it left off in 2006 – experiencing substantial growth that is pushing business to record highs.

Michael Betley, Managing Director at Trust Corporation in Guernsey, on how the Channel Islands are remaining competitive in the emerging international economy.

This memorandum has been prepared for the assistance of our clients in connection with the provisions relevant to amalgamations and takeovers under the Companies (Guernsey) Law, 2008 (the "Companies Law").

In the offshore domain, trusts have their origin in the common law of England and have, for many years, been used by wealthy families in the Middle East to create long-term structures to address tax and succession planning. Trusts can be crafted so as to comply with the specific family requirements of Islamic law.

It is nearly a year since tax authorities around the world sent their first sets of Foreign Account Tax Compliance Act (FATCA) reports to the US Internal Revenue Service.

The number of films being produced by Hollywood is set to fall by more than a third as the major studios struggle against the climate of economic uncertainty.

The concept and practical delivery of private banking services by international banks has in some ways evolved rapidly over the last three decades. The most recent development is the emergence of the family office as an identifiable market segment, to which international banks are now seeking to offer services, primarily through their private banking arms.

Section 1 of the Companies (Financial Assistance for Acquisition of Own Shares) Ordinance, 1998 restricts the giving of financial assistance by a Guernsey company or any of its subsidiaries which is a Guernsey company, for the purpose of the acquisition of shares in GCo or in reducing or discharging a liability incurred for the purpose of the acquisition.

The (as yet, unreported) decision of the Court of Appeal in the matter of "The Chief Officer, Customs & Excise, Immigration and Nationality Service -v- Garnet Investments Limited" could have wide ramifications for the banking industry and those regularly subject to the reporting regimes under the Criminal Justice (Proceeds of Crime) Bailiwick of Guernsey Law 1999 (the Proceeds Law).

Both for you personally and your organisation there are potential benefits to be gained from using financial services in Guernsey.

Over the last four decades Guernsey has established itself as a leading international finance centre with the highest reputation and standards, providing an extensive range of financial services to a global market.

The great Benjamin Franklin opined in 1789 that ‘in this world nothing can be said to be certain, except death and taxes’.

The Bailiwick of Guernsey comprises three main islands: Guernsey, Alderney and Sark. Alderney and Sark are dependencies of Guernsey but have certain legislative powers of their own. The Bailiwick is not part of the United Kingdom and therefore is not represented in the UK Parliament. Acts of Parliament do not apply in the Bailiwick unless extended by Order in Council.

Companies list securities as an efficient means of raising capital: investors choose listed securities because of the additional shareholder protection and liquidity. Investors looking for liquidity turn naturally to London. In the recent past smaller exchanges in Dublin and Luxembourg have developed niche markets but over the next year legislative and regulatory changes in the EU and the Channel Islands will significantly enhance the advantages of listing outside of the EU on the Channel Island

The Limited Partnerships (Guernsey) Law, 1995 (as amended) was brought into force on 1 February 1996.