One of the leading bankers to financial intermediaries on the Island, the RBS International boasts particular strengths in the captive insurance market, complemented by its own treasury, securities services, lending and trust experts.

Island profile

The second largest of the Channel Islands, with a population of around 60,000, The Bailiwick of Guernsey includes the Islands of Sark, Alderney, Herm and Lihou. It has a privileged relationship with both the United Kingdom and European Union, which provides the perfect environment for its financial services industry. With its own parliament, named The States of Deliberation but better known as the States of Guernsey, the Island pledges allegiance to the Monarchy. Enjoying the best of both worlds, it sets its own fiscal and legal policies, but still benefits from UK support on defence issues and foreign affairs. Guernsey enjoys a special relationship with the European Union (EU). This is defined by Protocol 3 to the 1973 Treaty of Accession of the UK to the European Community, which can only be changed by the unanimous resolution of all the member states. Although Guernsey is not a member state there are special arrangements under Protocol 3 for the free movement of manufactured and agricultural goods between Guernsey and the EU member states.

With a history of strong economic growth and low unemployment, the Island's chief industry is financial services, supported by tourism, agriculture and manufacturing. To support this sector, the Island has a policy of ongoing investment in transport links, telecommunications and professional training facilities.

Finance and economics

Guernsey has a worldwide reputation for international offshore business, developed over more than 30 years. This has been achieved through a combination of stable government and careful regulation. It is equipped with it's own Financial Services Commission, which is a statutory body established in 1988 by the States of Guernsey. The Commission is independent of government and its objective is to provide effective, professional supervision and modern regulation of the finance sector to the highest international standards within a diverse and innovative environment.

Since introducing pioneering legislation in 1997, Guernsey has cornered the market in Protected Cell Companies which enable different groups of shareholders to carry on business through a single legal entity while isolating the assets and risks attached to each within one or more of the company's cells.

Guernsey issues its own sterling denominated currency in monetary union with the UK.

The Island has enjoyed its own tax regime for over 900 years, which now incorporates:

• 20% rate of income tax
• No capital gains tax
• No estate tax
• No inheritance tax
• No value added tax
• Retention Tax on deposits and certain investments for EU residents
• No exchange control restrictions

For further information on Guernsey's finance industry, you might like to visit www.gfsc.guernseyci.com.

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