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Welcome to the Guernsey Finance podcast page.
Our podcasts bring you all the latest news and insight from Guernsey, the global finance specialist, as well as audio from some of our online events.
Rosie Allsopp:
Hello, everyone. Welcome to today's episode of the Guernsey Finance podcast, the show where we bring you interviews with top thinkers from global financial services industry. For those of you who aren't familiar, we dive into emerging trends and themes from the finance industry covering sectors from investment funds to insurance. My name is Rosie Allsopp. I'm Communications Director at Guernsey Finance. And today we're talking about what Guernsey Finance, that's us, the promotional agency for Guernsey's financial services sector has been up to in 2024 and I'm delighted to be joined by Rupert Pleasant, the agency's Chief Executive.
Rupert has been CEO for the last four years and his career in financial services has taken him around the globe living and working in London, Hong Kong, Cape Town, Zurich, Geneva and Guernsey. His primary background is in private banking and trust and corporate services where he's held a number of senior management roles in global companies. As well as an MBA from the University of Cape Town, Rupert holds a law degree and is a member of STEP, CISI and the Institute of Directors. Today we'll be discussing everything that is to know about how Guernsey Finance has promoted the island of Guernsey as an IFC this year. Thanks for joining us, Rupert.
Rupert Pleasant:
It's great to be here. Thank you.
Rosie Allsopp:
Thank you. This has been an exceptionally busy and exciting year for us. Two standout events in this year's calendar, the UK general election, which ushered in the first Labour government in 14 years, and probably more importantly than that, the visit to Guernsey by His Majesty King Charles III. What's your reflection on how 2024 has been for the agency, Rupert?
Rupert Pleasant:
I guess let's not forget the re-emergence of Donald Trump at the same time as well. So yes, a very, a very interesting year indeed. 2024, it's been a outstanding year for the agency. And we've had many people who have commented on the work that's been done by the whole team. It's been a great year, but of course everybody forgets the work actually starts the year before. So 2023, had Miles Celic over. who is the CEO of City UK. I think we knew that there was going to be a change in government coming and it was actually him who suggested to us that maybe we should be producing a report that could be presented to a new government if a new government came into power. We actually have combined resources with Frontier Economics. Frontier Economics are very well known.
Rosie Allsopp:
One of Europe's leading research agencies, I believe.
Rupert Pleasant:
That's exactly right. Got in contact with Frontier Economics and we asked to commission a report.
And it was, what is the value of Guernsey financial services industry to the United Kingdom economy? And I think even we were a little bit staggered at the results. The headline is basically 57 billion. There is 57 billion of capital that is channeled through Guernsey into the United Kingdom. And that's a hugely powerful proposition when you're talking with politicians, industry leaders, captains of industry, et cetera. It's three times what cross rail costs. So when you look at that, it's a hugely influential and fundamental sum that you can actually discuss with very powerful politicians. But then when you then isolate it and you say, well, in actual fact, that's going to all four nations. And it's when you look at what that actually then produces, seven billion of investor returns in the UK. That is a huge amount that is going to the treasury in the UK, two billion in returns for investment managers in the UK and we calculated between three and four billion in social returns for the UK so that's things like social housing infrastructure, hospitals, roads, education. So this really falls very much into the Labour manifesto and the Labour policy so it has been very very interesting to discuss with them.
Rosie Allsopp:
And we had the opportunity to do that didn't we this year because for the first time we attended the Labour Party Conference and the Conservative Party Conference. Do want to tell us a little bit about those?
Rupert Pleasant:
Yeah, very interesting. Obviously very different dynamics to both Labour, somewhat of a celebration, first time in power in 14 years. But obviously at that stage, very interesting. So many new MPs there. So a lot of people finding their feet. A lot of people really looking to not only engage with their fellow politicians, but also with industry at the same time, voters. So that was very interesting. Whereas obviously the conservative one, a little bit more questioning what had happened. But at the time we had four potential candidates for the conservative leaders. So it was a little bit of a lobbying festival, if you want to kind of put it that way. But certainly Labour, very, very interesting indeed. And the nice thing about it is that we did get access to a number of very senior politicians. We managed to meet up with the likes of David Lammy, Tulip Siddiq, Ed Miliband, which was great because you know, you could actually see they were interested in what we had to say. But I think what was more fundamental and probably more exciting from my side is the new MPs and also the Metro mayors. There's a lot more discussion about abortioning power out from Westminster into the various regions at the moment. So to be able to have discussions with those Metro mayors was very, very interesting for us. And I think it really shows exactly where Guernsey can be funnelling some of its capital, but also those new MPs as well. They're finding their feet. They've obviously got projects that they need to be committed to locally So we're still engaged with a number of them and we want to continue the conversations next year But yeah, I found both conferences absolutely fascinating and well worth attending and certainly we'll be back at labor next year Yeah, that's that's really good to know.
Rosie Allsopp:
It's interesting what you're saying actually about being able to engage with people like Ed Miliband because you know, Guernsey, as a leader in sustainable finance, we have an opportunity to really demonstrate to the UK, not just the value that's laid out in the Frontier Economics report, but as a leader in sustainable finance as well. Which leads me neatly onto the next bit, I guess, which is the King's visit in July. Tell us about that.
Rupert Pleasant:
Yeah. The Chief Minister took me to one side last year and said, we have an opportunity it's highly likely that the King's going to be visiting and I rubbed my hands together at that stage and thought this is fantastic. If we could get five, even 10 minutes of his time to discuss our initiatives in the world of sustainable finance, that would just be, know, would be certainly a world first for the agency.It had to go via Government House and had to go via the bailiff here in Guernsey and it actually emerged that we could get half an hour with him which of course then put a slightly different spin on it and maybe a slightly different panic at the same time is what do you talk to the monarch about for half an hour? Well, obviously we have a lot to discuss, but one thing that came back from the palace was that they didn't just want facts and figures. What they wanted is they wanted tangibility of what we're doing. What are our aims? What are our goals? What are we actually achieving? But what then is that producing in the field? And that's what I found most interesting was then being able to show him solar plants in the UK, how Guernsey is really having an impact, how many millions and billions of pounds are going from Guernsey being channeled through us into the United Kingdom. And just a great demonstration for him. And on the back of that, we met with the like of Noel Quinn, who was the global head of HSBC at the time, with Emmanuelle Bury, who is UK country head of BNP Paribas as well.
Rosie Allsopp:
Representing sustainable markets initiative.
Rupert Pleasant:
That's exactly it. So, you know, getting our message over to them as well. And Emmanuelle very kindly has spoken at a Guernsey Finance event recently as well.
Rosie Allsopp:
So, you know, you mentioned some of Guernsey finances events that we put on there. We had an outstanding year both in terms of our Funds Forum event which took place in May in London and our Sustainable Finance event which for the first time took place in London just a few weeks back. Tell us about those.
Rupert Pleasant:
Funds Forum this year, fantastic. So we had over 500 attendees, which is the first time we've broken the 500 barrier, which was very pleasing indeed. Real diverse mix of attendees, whether it be banks, whether it be administrators, obviously the legal fraternity is very, very well represented there. We had Sir Ranulph Fiennes as our keynote speaker, who was absolutely fantastic. We gave him half an hour and I think it took about an hour in the end. But again, it just shows the draw that Funds Forum is now. People are willing to give up half a day of their time to come and actually explore and see exactly Guernsey's fine credentials in the funds world. It's also the first time that we've actually put something on for the associate level lawyers as well. So what we're trying to do is to make it into an educational piece as well. not only looking at the partners and senior partners and the, you know, those who already have a good standing in the industry, but also looking at the associate level lawyers as well and the accountants, et cetera, to come and join with us and using it as a, you know, real educational piece too, real celebration of Guernsey's great expertise in the funds world. Moving on to the insurance world, for the first time in recent memory anyway, staged a conference in Guernsey with Airmic, which was by all accounts a huge success and I believe is going to be happening again next year. That's right. So this is the first time that Airmic has taken place outside of the UK. So the Guernsey International Insurance Association worked very hard to bring Airmic over and they were so impressed that they're coming back next year. So it's great because again, it means that we get a lot of insurance professionals over to the island. Obviously, insurance is one of the main stables of the financial services industry over here in Guernsey. So not only can we showcase insurance, but we can showcase the island at the same time. you know, a real good opportunity for us to bring people over. And again, I've no doubt whatsoever that 2025, it will be a huge success and we'll again have a huge footfall over to Guernsey for you know what what really is going to be hopefully one of the key annual insurance events globally.
Rosie Allsopp:
Now you've visited every target market this year including the UK, the US, South Africa and the Middle East. What are your reflections on how Guernsey's offering is evolving in those markets?
Rupert Pleasant:
Between myself and the business development team we must have done many thousands of miles this year exactly as you say our target markets are very much still the United Kingdom. So we have three business development representatives in the UK, North America focusing on New York and Miami. Middle East, we have representation in Dubai. But really, I guess our focus longer term is going to be more the Saudi, Kuwait, Bahrain markets. We have representation in Southern Africa, so South Africa, but also looking at the likes of Kenya and Ghana, but also we're still key sponsors of events in Asia as well. So Singapore and Hong Kong very much on our radar. I think one of the things that always strikes me is when you speak to people and they realise that you're from Guernsey, that we really are seen as a first tier blue chip international finance centre, which is exceedingly good to see. It's all about safety, security and stability and that's been our mantra for many years now. But obviously we've got to understand there's many regions of the world at the moment that are going through conflict and instability to be able to actually go and offer them a safe pair of hands is something that they are exceedingly grateful for. We've had 800 years of independence. Also, we've been a financial services centre. Well, if we look at the insurance industry, the first captives was actually established here, 1922, so over 100 years ago. You could, I guess in certain terms, say that we've been an international finance centre for over 100 years now. So when you're looking at that kind of longevity and when you're looking at that independence, it really is a massive selling point for the island as an international finance centre. We have got an excellent and very well-respected rule of law. We've got a first-class legal accounting and administrative services over here. When you kind of put all that together, it's a very valuable proposition. But I think some of the things that interested me, and this was from a visit to Miami recently and also one to Singapore as well. Firstly, when you compare us to other jurisdictions, we are cost effective. And I think sometimes because we are a premier product, people maybe have the misconception that, you know, we're expensive. Well, yes, you pay for what you get. However, you're finding certain jurisdictions are doing a degree of catch up at the moment. For years, we have provided substance. We've provided first rate anti-money laundering. And yes, that has obviously, a certain part of that cost has been passed on to the client. But we're very good at that now, and it's an automated system. You're finding other jurisdictions are catching up at the moment, and they are now passing that cost on to the client. So therefore, yes, we are seen as a lower cost jurisdiction now, which is great. Our speed to market and our responsiveness, we're finding other jurisdictions that are just not being able to turn the business around quickly. If you look at the funds world, we can certainly have a fund to market depending on the complex, how complex it is. In a matter of weeks, other jurisdictions that we've spoken to, it could be six months to a year. Response times, response times in other jurisdictions, getting no response from their service providers within a week. We have a mandate within 24 hours. So there's a lot of excellent, excellent selling points that we actually have here. believe access is something that is part of that compelling offering. Certainly when we've been away, people have talked about how difficult it is to speak to a regulator in other jurisdictions. That's not something that happens here. That's right. Often we have clients who over, you maybe it's a family office, maybe it's a potential new fund administrator, et cetera. And what we would like to, what we do is when they come to the island, we act as a one-stop shop. So within one day, we can get them to see the regulator. And again, the regulator is exceedingly accessible and willing to discuss new propositions, new entrance to the market, but also see a legal service provider and accounting provider over here and administrator. And if needs be, obviously government at the same time as well. it's all about accessibility and it's all about discussing that new market proposition. So it is a huge selling point for us definitely.
Rosie Allsopp:
So we talked a little bit earlier about when the agency had the opportunity to showcase our sustainable finance offering to His Majesty King Charles. What progress has Guernsey made in the sustainable finance space over the last year?
Rupert Pleasant:
There's been quite a few developments, haven't there? A huge amount of progress. So we had our first sustainable finance seminar in London this year. That follows the last four years where we actually had sustainable finance seminar in Guernsey. So that was a first for us exceedingly successful. And I believe it's just been agreed for 2025 that we're to be in London again. Lots of interest there. And of course, what we're looking to do is really seek a new audience. I think Steff did a great job and very successful. But other initiatives in the year, so following the Paris Agreement, the states of Guernsey and ourselves have really been pulling together an action plan. How the islands can meet its net zero targets. There's been a GFSC discussion paper on ISSB, on the sustainability regulations. Steff, our head of sustainability here, went to the UNFC4S, which was the launch of the British and the Irish Isles Transition Finance Working Group. I know she met a lot of key figures there and a lot of them were very impressed with exactly what Guernsey's been doing. We had Michael Mainelli over, who was at the time the Lord Mayor of London. Great visit, a real showcase for Guernsey as well. He met with members of the Sustainable Finance Guernsey Council and also the IOD Next Generation group as well. And he was very interested but also I think again impressed to actually see what a leader Guernsey is in sustainable finance and we've got some initiatives lined up with him next year as well. Just because he's ended his year as mayor doesn't mean that he's not keeping a key interest in what we're doing over here as well. Guernsey Finance has worked closely with the GFSC and the states of Guernsey on the release of Sustainable Guernsey paper. So that really looks at how we coordinate and how we commit our approach to net zero going forward. We're helping economic development over here, which is one of our key committees, put in a sustainable finance policy. We're producing new literature which demonstrates how sustainability is integrated across all our key sectors. It's also got some excellent case studies in there. And you look at it, so Guernsey becoming a home for catastrophe bonds and in the humanitarian space for our insurance sector. And I think finally, but by no means least, we won the Wealth Briefing Wealth for Good Award for the best communications and thought leadership strategy. So it's great to see that we're actually being recognised on the international stage and by third parties as well. So you can see it's been an exceedingly busy year and I think 2025 will be exactly the same.
Rosie Allsopp:
It wasn't just the agency that was awarded an accolade and recognised for its achievements, was it? You personally received an accolade earlier this year from the Lord Mayor of the City of London himself. Would you like to tell us about that?
Rupert Pleasant:
I honestly thought it was a joke to start with. I had an email that came through from the City of London Corporation saying, would I like to be made a Freeman of the City of London. I thought absolutely delighted. So Michael was very kind indeed. So I attended the award ceremony at Mansion House in London. And yes, I'm now officially a Freeman of the City of London. I can drive sheep across London Bridge. But yeah, a real honour. And again, thank you to Michael and his team at the City of London Corporation.
Rosie Allsopp:
Clearly, it has been an exceptional year for the agency, which makes me wonder how on earth are we going to top it all in 2025? It's going to be difficult but we have got some exceptional plans in place. We've got industry update which is on the 29th of January so I'll encourage anybody who's in Guernsey to come along to that please do. It's a great showcase for us, it's a great showcase for the island but we do have some very interesting plans in place for 2025 so please do engage with us and we'd love to see you attending one of our multiple events next year. Thank you very much for joining us on the podcast today, Rupert. It's been great to hear about our successful year as well as what our priorities might be for 2025. And as Rupert mentioned, you can hear more from the Guernsey Finance team at our industry update that takes place on the 29th of January 2025. And you can register for that on our website, guernseyfinance.com. Thanks so much for listening today. If you enjoyed this discussion, we have a whole back catalogue of interviews on the Guernsey Finance podcast channel and you can check them out by searching Guernsey Finance on your preferred podcast platform. And we'll also have links to Rupert and Guernsey Finance in the show notes. To find out more about Guernsey and its specialist financial services sector, head over to the website guernseyfinance.com and if you want to learn more about our success in sustainable finance, tune into the sister podcast, the Sustainable Finance Guernsey podcast. We look forward to welcoming you back soon.
And until then, it's goodbye from Guernsey.