Press Release - 3 June 2004

The Jersey Financial Services Commission has today 3 June 2004 issued its quarterly report for the period 1 January 2004 to 31 March 2004.

Headlines:

• Bank deposits increased by 4.3% to £155.7 billion during the quarter.
  
• The total value of funds under management increased by 15.1% to £35.8 billion during the quarter.
  
• The value of collective investment funds managed in the Island stood at £95.7 billion as at 31 March 2004. For further details please see comments below.
  
  

Bank Deposits

Jersey bank deposits increased by 4.3% (£6.4 billion) during the quarter despite an increase in the value of sterling against other currencies.(See Appendix A)

68% of bank deposits are held in currencies other than sterling. During the quarter there was an increase (5.4% in US dollar terms) in the underlying value of US dollar balances and in the underlying value of the balances denominated in the Euro (15.6%in Euro terms). (See Appendix B)

The number of banking licences in issue reduced to 51, largely reflecting change in the group structure of some banks.

Figure 1

BANK DEPOSITS
(£ MILLION)AS AT 31 MARCH FOR EACH OF THE PAST FOUR YEARS

Funds

The Collective Investment Funds (Jersey) Law 1998 (The "Law")
The Control of Borrowing (Jersey) Order 1958 (The "Order")

During the last quarter of 2003 we changed our methodology for collecting and collating the fund statistics.

From 1 October 2003 we have excluded from the figures, the collective investment funds for which a permit was issued under the Law for the function of distributor or similar minor function. Such funds are regarded as non-Jersey funds. However, we now collect statistics on the private schemes administered in the Island, which, although not requiring a permit under the Law, require consent under the Order (such funds are termed "COBO funds")

The total value of funds fell by £3.0 billion during the quarter to £95.7 billion. Whilst collective investment funds increased by £4.1 billion, there was a fall of £7.1 billion in COBO funds. The latter reflected the impact of a fund moving to another jurisdiction for diversification reasons. (See Appendices C & D)

Company incorporations

The total number of incorporations during the last quarter was 593, an increase of 11% over the corresponding period of last year. This continued the trend in the last quarter of 2003. The increase is due to changes in UK legislation relating to stamp duty which will come into force later in the year and the improving global economy.

The number of 'fast track' incorporations for the quarter was 255 and the number of normal company incorporations was 338. (See Notes to Editors.)

Against their self-imposed target of 95% the Registry recorded a 98% rate for normal two-day incorporations and a 99% rate for fast track companies. (See Notes to Editors.)

Figure 2 (See also appendix E) illustrates the number of new company incorporations in the first three months of the past four years.

Figure 2

TOTAL NEW COMPANY INCORPORATIONS IN THE FIRST THREE MONTHS OF THE PAST FOUR YEARS

Investment Business

Total funds under investment management (class B of the Financial Services (Jersey) Law 1998) stood at £35.8 billion as at 31 March 2004, an increase of 29% over the same quarter of 2003. Against the last quarter of 2003 this represented an increase of 15%.

As at 31 March 2004 the total number of clients of investment managers was 20,288 which represented a small decrease over the previous quarter.

Insurance Business

During the quarter to the end of March 2004, no Category A permits were issued or cancelled.

Two new Category B permits were issued, while none were cancelled

Therefore as at 31 March 2004 there were 155 Category A permits in issue, and 15 Category B permits. (See Appendix F.)

Figure 3

ALL INSURANCE LICENCES ASAT 31 MARCH FOR EACH OF THE PAST
FOUR YEARS

Conclusion

David Carse, Director General of the Commission, commenting on the quarterly statistics said today, " Most areas of financial services business continued to expand during the first quarter of 2004, with encouraging growth in deposits, collective investment funds, company incorporations and funds under management".

For further information:

David Carse
Director General
Jersey Financial Services Commission

Telephone: +44(0) 1534 822011
Facsimile: +44(0) 1534 822001
Email: d.carse@jerseyfsc.org

Notes to Editors:

1. Normal company incorporations are completed within two working days whilst fast track incorporations are completed within two hours.

2. Published timescales were introduced the week commencing 1 January 2000, and the Registry has worked to those targets throughout the last year.

Appendix A

Annual growth in Banks and Bank Deposits to date. £ Millions

Appendix B

ANALYSIS OF DEPOSITS - MARCH 2004

Appendix C

COLLCOLLECTIVE INVESTMENT FUNDS (JERSEY) LAW 1988 ("THE LAW")
CONTROL OF BORROWING (JERSEY) ORDER 1958 (THE "ORDER")

SUMMARY OF STATISTICAL SURVEY OF FUNDS SERVICED IN JERSEY AS AT 31 MARCH 2004

From the 1 October 2003 we have excluded from the figures, the collective investment funds for which a permit was issued under the Law for the function of distributor or similar minor function. However, we now collect statistics on the private schemes administered in the Island, which, although not requiring a permit under the Law, require consent under the Order (such funds are termed "COBO funds")

ANALYSIS OF CIFS AND COBO FUNDS

Appendix D

Analysis by Investment Policy Code

Appendix E

Appendix F

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