General Overview. Due to its geographical location and high quality of financial services, Guernsey is often chosen as a high standing offshore jurisdiction for offshore business and asset protection purposes. Guernsey is known worldwide for its leadership in offshore captive insurance business, but it also has a well developed offshore banking sector, as well as offshore fund and offshore trust management services.

Banking Sector. It is possible to incorporate administered and established banks in Guernsey, and both of them are carefully monitored by the Financial Services Commission according to the same standards. In the last years there was a significant inflow of capitals into the banks of Guernsey.

Trusts.  Historically, it was advantageous for UK citizens to create an offshore trust in Guernsey for effective asset protection and wealth management purposes. However, a number of changes introduced into bilateral cooperation altered the trust law significantly, and as a result reduced such opportunities in Guernsey for UK citizens and residents. Therefore, now the jurisdiction provides offshore trust services mainly for other countries’ citizens.

Insurance Sector. Insurance sector is Guernsey can be divided in two parts – local insurance companies, which provided services within the jurisdiction and international insurance companies, which provide international insurance services from Guernsey. The second category includes offshore captive insurance and protected cell companies. In order to conduct an insurance business in Guernsey, it is necessary to obtain a government license there. Offshore insurance business is well regulated and companies provide high quality of offshore insurance services.

Fund Management.  Open-ended and closed-ended funds may be incorporated and managed from Guernsey. Different types of government licenses may be obtained by complying with all the norms and regulations of the local authorities. A license type depends on the intended activity of an offshore  investment fund.