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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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