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Press Release - 28 May 2003

The Jersey Financial Services Commission has today 28 May 2003 issued its quarterly report for the period 1 January 2003 to 31 March 2003.

Headlines:

  • Bank deposits rose during the quarter by 11.7% to £156 billion.
  • Collective Investment Funds values fell by 8.9%.
  • 23 new Collective Investment Funds have been authorised during this quarter.

Bank Deposits

Jersey bank deposits have increased to £156 billion. This is an increase of 11.7% against the last quarter and of 15.2% against the same quarter last year (see Appendix B). This notable increase in cash deposits may be at least partly due to investors becoming more risk averse as a result of uncertainty in the global equity markets.

The number of banking licences reduced to 55. This slight decrease in the number of licences is due to these banks either withdrawing from Jersey due to the reorganisation of their group structures or merging with existing banks.

Figure 1

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

Funds

As of the 31 March 2003 the value of funds in the Island stood at £96 billion. This is a decrease of 8.9% since the last quarter. This decrease is likely to be due to the continual fall in the value of the underlying portfolios due to the poor performance of the stock markets. Compared with the same quarter last year, the values of funds have decreased by 10.3% (See Appendix A).

The number of funds for this quarter has however increased from 449 to 472. Sub-funds have increased to 1,877 since the last quarter.

23 new Collective Investment Funds have been authorised during this quarter.

Figure 2

COLLECTIVE INVESTMENT FUNDS
(£ MILLION) AS AT 31 MARCH FOR EACH OF THE PAST FOUR YEARS

Company Incorporations

The total number of incorporations for this quarter was 533, which shows a decrease of 40% over the same period last year. This reflects the state of the global economy and the changes in UK legislation, in particular, those concerning offshore companies engaged in property holding activities. It should be noted however that there was an increase of 10.1% in company incorporations compared to the quarter ended 31 December 2002.

The number of 'fast track' incorporations for this quarter was 196 and the number of normal company incorporations for this quarter was 337. (See Notes to Editors.)

Against their self-imposed target of 95%, Registry recorded a 95% rate for normal two-day incorporations and a 92.1% rate for fast track companies for the year as a whole. (See Notes to Editors.)

Figure 3 (see also Appendix C) illustrates the number of new company incorporations throughout the past four years.


Figure 3

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

Investment Business

The total funds under investment management (class B of the Financial Services (Jersey) Law 1998) stood at £28 billion. When compared to the same quarter last year, this shows a decrease of 10.5%. Against the last quarter this represents a 12.6% decrease, providing further evidence of the lack of investor confidence in the global markets.

As at 31 March 2003 the total number of clients of investment managers was 21,567.

Insurance Business

There were six new Category A licences issued during this first quarter of the year, no new Category B Insurance permits and no permits were cancelled.

Therefore as at 31 March 2003, there were 162 Category A permits in issue and 19 Category B permits.

Figure 4

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

Conclusion

Richard Pratt, Director General of the Commission, commenting on the quarterly statistics said today, "It is good to note from these results that Jersey remains a jurisdiction of choice, despite the ongoing fall in equity markets. Against this background of weak world financial markets the Island continues to offer attractive financial services and investment opportunities. There is little doubt that the current state of the world economy is providing a difficult environment in which to work, but Jersey continues to show that a strong, well regulated jurisdiction can continue to perform in these testing times."

Appendix A

Annual growth in Collective Investment Funds to date. £ Millions

DATE TOTAL VALUE
£ MILLIONS
NUMBER OF FUNDS TOTAL NO.
OF SEPARATE POOLS
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
31 Mar 2002 106,854.0 353 1503
30 Jun 2002 106,228.4 368 1528
30 Sep 2002 96,912.6 403 1762
31 Dec 2002 105,136.4 449 1856
31 Mar 2003 95,806.9 472 1877

 

Appendix B

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

DATE NO OF BANKS STERLING CURRENCY TOTAL
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
31 Mar 2002 61 43,324 91,716 135,041
30 Jun 2002 62 43,136 89,307 132,443
30 Sep 2002 62 43,213 93,269 136,482
31 Dec 2002 59 47,489 91,840 139,329
31 Dec 2003 55 47,688 107,931 155,619

Appendix C

QUARTERLY COMPANY INCORPORATIONS
 
31 March
30 June
30 September
31 December
1999
645
625
720
709
2000
970
727
684
683
2001
680
679
611
790
2002
889
833
623
484
2003
533
-
-
 

Appendix D

ALL INSURANCE LICENCES ISSUED AS AT 31 MARCH
31 March 2000
181
31 March 2001
186
31 March 2002
179
31 March 2003
181

For further information:

Richard Pratt
Director General
Jersey Financial Services Commission

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

 

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