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Press Release - 6 March 2002

Jersey Financial Services Commission Quarterly Report

The Jersey Financial Services Commission has today (06 March 2002) issued a quarterly report for the period 1 October 2001 to 31 December 2001.

Headlines

Compared with 31 December 2000, funds have increased by 13.8%

Bank deposits rose during the quarter to £132 billion - an increase of 12.7% on the same date last year

Funds

AAs of the 31 December 2001 the value of funds stood at £ 103 billion. This is an increase of 9.1% since the last quarter. ( See Appendix A ) 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. ( See Appendix B ) 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.

Company Incorporations

The total incorporations for the fourth quarter of 2001 is 790, which shows an increase of 15.7% over the same period last year.

The number of fast track companies for this quarter is 295 and the number of normal company incorporations for this quarter is 495. (See Notes to Editors)

The Registry continued their success in minimising delays in their area and have recorded a 96.9% rate against their self imposed targets. (See Notes to Editors)

The following tables (Figs 1 & Appendix C.) illustrates the number of new company incorporations throughout the past four years.

Fig 1

Total New Company Incorporations in the Twelve Months Over the Past Four Years

Insurance Business
The Insurance area report the addition of 3 new Category A and 1 new Category B permits for the fourth quarter of the year.

The annual permit renewal exercise for the year has been virtually completed. Because of mergers and acquisitions in the industry, sixteen Category A permits and five Category B permits have not been renewed.

At this time, there are 158 Category A permits in issue and eighteen Category B permits.

Fig 2

All Insurance Licences
as at 31 December 2001

Other news

The number of security issues by Special Purpose Vehicles (SPVs) authorised during this quarter is 114.

The table at Appendix E shows the movement in the number of SPVs approved in the twelve months of the past four years as of 31 December 2001. Late returns have prompted a revise of the figures for September 2001 from 47 to 77.

Fig 3

SPVs as at 31 December 2001

Some issuers of SPVs are changing their practices - using covered warrants instead of securities issues. The following table shows that, taking securities issues and warrants, SPV activity continues to grow. The Commission is reviewing the data series with a view to improving its reliability.

Issues & Warrants

2000	ISSUES	WARRANTS	TOTAL
March	147	19	166
June	183	30	213
September	163	50	213
2001	ISSUES	WARRANTS	TOTAL
March	139	24	163
June	63	109	172
September	47	185	232
December	114	363	477

Conclusion

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."

Appendix A

Annual growth in Collective Investment Funds to date. £ Millions

DATE	TOTAL VALUE £ MILLIONS	NUMBER OF FUNDS	TOTAL NO. OF SEPARATE POOLS
31 Dec 1997	35,884.8	333	1107
31 Mar 1998	35,241.6	335	1150
30 Jun 1998	37,818.5	334	1170
30 Sep 1998	37,798.7	329	1190
31 Dec 1998	45,310.5	344	1205
31 Mar 1999	52,189.2	343	1260
30 Jun 1999	57,222.1	323	1259
30 Sep 1999	58,667.5	323	1321
31 Dec 1999	71,579.5	324	1361
31 Mar 2000	80,726.2	330	1401
30 Jun 2000	87,082.8	314	1373
30 Sep 2000	90,310.5	313	1410
31 Dec 2000	90,866.8	321	1423
31 Mar 2001	94,758.3	313	1438
30 Jun 2001	105,612.6	302	1575
30 Sep 2001	94,823.8	296	1696
31 Dec 2001	103,375.9	327	1591

Appendix B

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

DATE	NO OF BANKS	STERLING	CURRENCY	TOTAL
31 Dec 1997	82	36,254	61,061	97,315
31 Mar 1998	79	37,236	59,218	96,454
30 Jun 1998	79	37,848	61,937	99,785
30 Sep 1998	79	39,220	64,437	103,657
31 Dec 1998	79	36,491	66,785	103,276
31 Mar 1999	77	36,411	68,285	104,696
30 Jun 1999	77	38,245	70,774	109,019
30 Sep 1999	77	38,418	69,003	107,421
31 Dec 1999	77	37,883	70,522	108,405
31 Mar 2000	73	39,250	69,992	109,242
30 Jun 2000	73	40,862	74,217	115,079
30 Sep 2000	73	38,933	77,001	117,934
31 Dec 2000	74	39,827	77,423	117,250
31 Mar 2001	70	41, 227	80,949	122,176
30 Jun 2001	70	42,377	83,520	125,897
30 Sep 2001	70	42,115	86,955	129,069
31 Dec 2001	64	44,057	88,116	132,173

Appendix C

QUARTERLY COMPANY INCORPORATIONS
	31 March	30 June	30 September	31 December
1998	845	665	623	586
1999	645	625	720	709
2000	970	727	684	683
2001	680	679	611	790

Appendix D

ALL INSURANCE LICENCES ISSUED TO 31 DECEMBER 2001
31 Dec 98	184
31 Dec 99	181
31 Dec 00	182
31 Dec 01	176

Appendix E

SECURITY ISSUES AUTHORISED ISSUED TO 31 DECEMBER 2001
31 Dec 98	291
31 Dec 99	403
31 Dec 00	630
31 Dec 01	363

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