We talk to Suntera Global, a global provider of bespoke fund, corporate and private wealth services.
The trusts, fiduciary and corporate services space in the Channel Islands will keep consolidating, while the sector becomes ever more international in its reach, a senior figure at Suntera Global has told this news service. Suntera, which provides private wealth, fund and corporate services globally, has its head office in Jersey.
Suntera Global earlier this year acquired the Channel Island Nedgroup Trust Limited.
“There has been a lot of consolidation within the trust industry in Jersey and that is inevitable given ever increasing compliance regulations and taxation. The cost of working has increased,” Dan Bisson, managing director, Channel Islands, Suntera, told WealthBriefing.
Bisson is among a number of senior figures this news service has interviewed in Jersey and Guernsey as we seek to assess what trends are unfolding. Common themes are talent shortages, increased business flows from the US, the Middle East and Asia, alongside a need to stress the islands' benefits as conduits for funds for those seeking new routes because of Brexit. (See here, here and here.)
The business is focused on integrating recent acquisitions, which included NeoTrust in Luxembourg and Reference Financial Services – also in Luxembourg, which is due to complete imminently – Socium Fund Services in the US and Nedgroup Trust in the Channel Islands, as previously mentioned.
“There has not been so much of this consolidation in Guernsey yet," he said "although I expect this will happen soon.”
Rising regulatory costs and client expectations, as well as a desire by banks to offload often complex businesses, are reasons for some of the consolidation. A few days ago, for example, Credit Suisse agreed to sell its trust business to Butterfield and Gasser Partner. (In Butterfield’s case, it bought the trust and company administration businesses of the Guernsey-based Legis Group in 2014.)