Benefiting the British economy

IFCs make considerable contributions to the economies of onshore territories.  The United Kingdom is fortunate that so many IFCs are British Overseas Territories or Crown Dependencies.  This has allowed the UK to develop especially-close ties with the IFCs – with close legal, cultural, and educational links and better financial and transport connections. 

This increases the benefits that the UK receives from these territories’ financial and professional services sectors.

For example:

  • Bermudian insurance supports 6,653 jobs in the United Kingdom, according to Transnational Analytics.  Including jobs to produce and export to Bermuda, and the investment of Bermudian-owned affiliates in the UK, over 100,000 British jobs depend on Bermuda: more than the island’s entire population.
  • Jersey supports between 51,000 and 147,000 net jobs in the United Kingdom, according to Capital Economics: contributing between £3bn and £8bn to the British economy.
  • Guernsey-domiciled investment funds invest over £34bn in UK assets – the vast majority from outside Europe – and earn British investment managers over £1bn a year in fees, according to KPMG.
  • The Isle of Man financial institutions hold £25bn in British assets more than British investors hold in Isle of Man institutions.

There are many misunderstandings in the world about the role of international financial centres. Damage to IFCs would hurt growth, investment, jobs, and pensions worldwide. The current shrill debate over the role of IFCs in the global economy risks unintended and unquantified consequences. We place the crucial benefits of IFCs for all of us in jeopardy at our peril.

IFCs make considerable contributions to the economies of onshore territories. The United Kingdom is fortunate that so many IFCs are British Overseas Territories or Crown Dependencies. This has allowed the UK to develop especially-close ties with the IFCs – with close legal, cultural, and educational links and better financial and transport connections.