As a sign of how some of the world’s international financial centres are battling to build business in the BRIC economies, the promotional agency for Guernsey’s financial industry issued an upbeat message about prospects for doing business with India.

“There is now an increased knowledge of what Guernsey can offer, but we recognise that we face increased competition from places such as Singapore, which are already well known in the India market. Having said that, we would like Guernsey to be seen as a hub for European and Western business relating to India, in much the same way as Singapore is viewed for business from the East,” Fiona Le Poidevin, chief executive of Guernsey Finance.

She spoke after returning from a week-long visit to Mumbai, where she was accompanied by three Guernsey-based financial services practitioners – John Morris from Legis Trust & Corporate Services, Keith Corbin from Nerine Trust Company and Gerald Hough of State Street – as well as her predecessor at Guernsey Finance, Peter Niven, who remains a consultant with the organisation until the end of the year.

Jurisdictions such as Guernsey, Jersey, the Isle of Man and other IFCs are battling to promote their financial and legal structures to emerging market economies, particularly at a time when business from more traditional sources, such as the UK, has not been less robust.

IFCs have to be careful, particularly on issues such as transparency and reporting, however. Indian politicians, for example, have at times been harsh in criticism about the use by some wealthy individuals of Swiss bank accounts, suggesting that offshore financial centres cannot automatically expect an easy ride in India.

The India market has hit some speed-bumps as markets faltered last year. According to the RBC Capgemini World Wealth Report 2012, covering developments in 2011, the population of Indian high net worth individuals fell by 18 per cent from the previous year. 

Radar screen

“It was encouraging to see that India has Guernsey on its radar and that there is a keen interest in what we have to offer in both the investment funds and fiduciary sectors, particularly in terms of fund structuring and wealth management services,” Le Poidevin said.

With India’s population, now at 1.2 billion, expected to rise rapidly in coming years, expanding demand for schools, roads and hospitals should be positive for financial organisations backing such projects, she said. Le Poidevin cited examples such as the India Capital Growth Fund, Indus Gas, Kolar Gold, Skil Ports & Logistics and Mytrah Energy Limited as Guernsey-incorporated entities. (They are listed on London’s AIM market.)

Last year, Guernsey signed a tax information exchange agreement with India.