Giving customers tools to get the job done in Jersey
This news service speaks to Pershing Ltd in the Channel Islands – part of BNY Mellon – about how it sees the Jersey-based financial sector evolving. A major custodian and provider of B2B services to wealth managers and other financial institutions, it is at the forefront of trends.
The “wealthier part” of customers continues to be interested in private trusts and other structures on offer in Jersey, with Middle East-based customers being an important business driver for the jurisdiction, a senior official said.
“Jersey has done a great job growing the product line over 25 years, starting with limited partnerships suitable for the professional industry, through cellular companies to fund structures and white label fund platforms. , to Foundations”, Mike Rothwell, Director and Country Director, Channel Islands, Pershing Limited, BNY Mellon | Pershing, told this news service.
The island’s ability to quickly develop structures useful to international families and businesses is particularly important, he said.
“Jersey is a naturally responsive jurisdiction, directing its regulatory and legislative development to develop solutions for its core industry. It really is common sense – Jersey does not need to legislate extensively, for example, on motor vehicle safety or health care, and can focus the legislative agenda on industries that really matter – like financial services,” Rothwell continued.
As this information service reached out to a variety of businesses and individuals in Jersey and Guernsey, a common theme emerged of how these places are emphasizing their ability to innovate and bring out structures such as trusts and businesses that give HNW clients the tools they need. (See here for an overview of developments in these islands.)
“Jersey has done a great job growing the product line over 25 years, starting with limited partnerships suitable for the professional industry, through cellular companies to fund structures and white label fund platforms. , to foundations. Jersey is a naturally responsive jurisdiction, directing its regulatory and legislative development to develop solutions for its core industry,” he said. “It really is common sense – Jersey hasn’t no need to legislate extensively, for example on car safety or health care, and can focus the legislative agenda on industries that really matter – like financial services.”
And, as Jersey Finance has noted before, the jurisdiction must think globally to attract interest from all corners.
“The Middle East is quite interesting. We enable businesses in this region to meet the needs of local and expatriate customers,” Rothwell said.
This offshore center, while it has several assets, has its challenges. Rothwell is candid: “Compliance is an employment hot spot in the industry, and Jersey is no exception. There is a widespread struggle for companies to hire.
The employment market is critical for Jersey and similar centres.
Rothwell argued that a problem for financial firms is that finance, relatively speaking, was seen as a less desirable career field for newcomers to the job market after the financial crash of 2008.
A separate but related point is that in the months following the end of the lockdown, there is, Rothwell said, a thirst among customers to return to face-to-face meetings, even though the working world will never be everything again. exactly the same as before Covid-19 hit.
“Young people still expect to work in an office and be around other people,” Rothwell said. “One of the factors being that their family situation is often less conducive to working from home. Moreover, they are eager to have the experience of the company, which cannot be experienced remotely. »
Pershing’s business model
The company knows it needs to deliver even more services as customer expectations rise.
“Customers want us to do more, which means moving up the value chain and increasing efficiency. When Pershing started in the Channel Islands, we only handled custody and trade clearing. We’ve seen a growing trend over the last 10 years where, for example, customers want us to provide integrated front-office solutions,” Rothwell said.
Customers want Pershing to be “behind the scenes,” he said, referring to the white-label business model it has.
“Over time, this led to a strategic increase in the set of solutions provided by Pershing, as customers gradually sought to reduce the number of vendors. [vendors] with whom they work themselves. For many, managing multiple vendors is time-consuming and expensive; creating a ‘one-stop-shop’ suite of holistic solutions that meet the range of a company’s needs has led to more valuable relationships between Pershing and its customers,” he said.
What about the future?
“Pershing Channel Islands has had a great decade, initially building a client portfolio based on UK wealth management firms and recently adding local Channel Island businesses as clients,” Rothwell said.
“We see the next five years as consolidating our position as the provider of choice for Channel Island companies, the provider of choice for offshore solutions for UK wealth management firms and our move into new markets in -of the.”