ZEDRA provides corporate services and fund solutions along with other services. 

Among Mr Fitzgerald's highlighted topics which he says will shape the industry next year are resourcing constraints, decreasing client service levels, increased regulation, innovation and new alternative funds including crypto currency funds.

Mr Fitzgerald set out his five topics for Express:

1. Resourcing constraints. Guernsey based business chiefs recently described the current labour shortages as like nothing seen in decades, with one recruitment firm lead describing the situation as a “perfect storm”. Guernsey was once a popular destination for professionals to benefit from a lower tax and a better work/life balance (especially less commute time), numerous air links and a sunnier climate. Mainland salary hikes have negated any Guernsey tax benefit and the number of air link options across the globe has substantially reduced. Covid, including a concern to be based near family/friends and a work from home opportunity now being offered in the UK and elsewhere, has eroded such positives. This has been complicated further by a difficult housing market to relocate to and a cost of living which remains high. Culture challenges of a returning workforce to the office have also not helped the situation or a hybrid of those working in and out of the office, as this continues to bring uncertainty to employees. All of this is leading to significant constraints for the Guernsey fund market to attract and retain employees, against a backdrop of growing business and additional client expectations. 

2. Decreasing client service levels. Consolidation of fund administrators is leading to changes in systems, policies & procedures, processes, personnel, a focus on fee recovery and a knock on effect of reduced client service levels. Fund Managers continue to consolidate service providers where possible, but where such relationships are strained due to poor service levels, this does not just put that service provider at risk, but Guernsey fund jurisdiction choice too. 

3. Increased regulation. There has been a lot of additional regulation over the last few years, eg the AML/CFT Handbook 2021 requires businesses to refresh their CDD/KYC investor reviews by the end of 2021. This has led to a considerable requirement to hire individuals with such a skillset, within the tight Guernsey labour market. Following on from these regulation changes, the question remains as to what additional compliance regulations will emerge post Covid, as they did post the 2008 financial crisis. 

4. Innovation. Fund administration companies are now acquiring or investing heavily into technology advancements to plan for the future of the fund industry. Investors want their fund information quicker and more user friendly than before. 

5. New alternative funds including crypto currency funds. Guernsey’s first crypto fund recently received regulatory approval and whilst lots of enquiries are being received in the industry, concern remains over pricing volatility and the awareness/experience of Crypto in Guernsey.

 Pictured: Damien Fitzgerald, Head of Funds at ZEDRA.