Palgrave Macmillan Studies in Banking and Financial Institutions Series Editor: Professor Philip Molyneux The Palgrave Macmillan Studies in Banking and Financial Institutions are international in orientation and include studies of banking within particular countries or regions, and studies of particular themes such as Corporate Banking, Risk Management, Mergers and Acquisitions, etc The books’ focus is on research and practice, and they include up-to-date and innovative studies on contemporary topics in banking that will have global impact and influence Titles include: Mario Anolli, Elena Beccalli and Tommaso Giordani (editors) RETAIL CREDIT RISK MANAGEMENT Rym Ayadi and Emrah Arbak FINANCIAL CENTRES IN EUROPE A New Positioning in the Global Financial Market Post-crisis Rym Ayadi and Sami Mouley MONETARY POLICIES, BANKING SYSTEMS, REGULATORY CONVERGENCE, EFFICIENCY AND GROWTH IN THE MEDITERRANEAN Caner Bakir BANK BEHAVIOUR AND RESILIENCE The Effect of Structures, Institutions and Agents Alessandro Carretta and Gianluca Mattarocci (editors) ASSET PRICING, REAL ESTATE AND PUBLIC FINANCE OVER THE CRISIS Dimitris N Chorafas BASEL III, THE DEVIL AND GLOBAL BANKING Dimitris N Chorafas HOUSEHOLD FINANCE Adrift in a Sea of Red Ink Dimitris N Chorafas SOVEREIGN DEBT CRISIS The New Normal and the Newly Poor Stefano Cosma and Elisabetta Gualandri (editors) THE ITALIAN BANKING SYSTEM Impact of the Crisis and Future Perspectives Joseph Falzon (editor) BANK PERFORMANCE, RISK AND SECURITISATION Joseph Falzon (editor) BANK STABILITY, SOVEREIGN DEBT AND DERIVATIVES Juan Fernández de Guevara Radoselovics and José Pastor Monsálvez (editors) CRISIS, RISK AND STABILITY IN FINANCIAL MARKETS Juan Fernández de Guevara Radoselovics and José Pastor Monsálvez (editors) MODERN BANK BEHAVIOUR Franco Fiordelisi and Ornella Ricci (editors) BANCASSURANCE IN EUROPE Past, Present and Future Josanco Floreani and Maurizio Polato THE ECONOMICS OF THE GLOBAL STOCK EXCHANGE INDUSTRY Jill M Hendrickson FINANCIAL CRISIS The United States in the Early Twenty-First Century Otto Hieronymi and Constantine Stephanou (editors) INTERNATIONAL DEBT Economic, Financial, Monetary, Political and Regulatory Aspects Paola Leone and Gianfranco A Vento (editors) CREDIT GUARANTEE INSTITUTIONS AND SME FINANCE Bernardo Nicoletti CLOUD COMPUTING IN FINANCIAL SERVICES Özlem Olgu EUROPEAN BANKING Enlargement, Structural Changes and Recent Developments Fotios Pasiouras GREEK BANKING From the Pre-Euro Reforms to the Financial Crisis and Beyond Daniela Pỵrvu CORPORATE INCOME TAX HARMONIZATION IN THE EUROPEAN UNION Ramkishen S Rajan EMERGING ASIA Essays on Crises, Capital Flows, FDI and Exchange Rate Gabriel Tortella and José Luis García Ruiz SPANISH MONEY AND BANKING A History The full list of titles available is on the website: www.palgrave.com/finance/sbfi.asp Palgrave Macmillan Studies in Banking and Financial Institutions Series Standing Order ISBN 978–1–4039–4872–4 You can receive future titles in this series as they are published by placing a standing order Please contact your bookseller or, in case of difficulty, write to us at the address below with your name and address, the title of the series and the ISBN quoted above Customer Services Department, Macmillan Distribution Ltd, Houndmills, Basingstoke, Hampshire RG21 6XS, England Financial Centres in Europe A New Positioning in the Global Financial Market Post-Crisis Rym Ayadi and Emrah Arbak Centre for European Policy Studies, Brussels, Belgium © Rym Ayadi and Emrah Arbak 2014 All rights reserved No reproduction, copy or transmission of this publication may be made without written permission No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988 First published 2014 by PALGRAVE MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers Limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS Palgrave Macmillan in the US is a division of St Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010 Palgrave Macmillan is the global academic imprint of the above companies and has companies and representatives throughout the world Palgrave® and Macmillan® are registered trademarks in the United States, the United Kingdom, Europe and other countries ISBN: 978–1–137–27503–5 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources Logging, pulping and manufacturing processes are expected to conform to the environmental regulations of the country of origin A catalogue record for this book is available from the British Library A catalog record for this book is available from the Library of Congress Contents List of Boxes vii List of Figures viii List of Tables ix Introduction Evolving Nature and Scope of Activities 2.1 Legal advantages 2.2 Regulatory advantages 2.3 Tax advantages 2.4 Evolving scope of activities Banking services Retail funds Alternative funds Insurance Structured finance Trusts, fiduciary services 11 13 17 18 20 22 26 27 27 Compelling International Initiatives 3.1 OECD’s tax initiatives 3.2 EU’s Code of Conduct on Business Taxation 3.3 EU’s Taxation of Savings Directive (EUSD) 3.4 EU’s State Aid rules 3.5 FATF’s initiatives 3.6 Financial Stability Forum (FSF) and the Financial Stability Board (FSB) 3.7 IMF’s Financial Services Assessment Program (FSAP) 30 31 40 41 44 46 Risks and Opportunities 4.1 Macroeconomic impact of the financial crisis on large economies 4.2 Macroeconomic impact of the financial crisis on small economies 4.3 Impact of the crisis on the financial sector 62 v 54 56 63 67 72 vi Contents 4.4 4.5 4.6 4.7 4.8 Changes in global regulatory frameworks Alternative Investment Fund Managers (AIFM) Directive UCITS amendments and revision of depositary functions Solvency II Enhancing global tax coordination Amendment of European Savings Tax Directive (2003/48/EC) Amendment of Mutual Assistance Directive (77/799/EEC) Proposed US Stop Tax Haven Abuse Act Global coordination on regulatory and tax matters Challenges to attract new skills Competition from emerging financial centres 77 82 85 87 90 90 91 93 94 95 96 Conclusions and the Way Forward 103 Appendix I: Survey of Selected Financial Centres 6.1 Levels of activity 6.2 Key aspects of sampled jurisdictions Andorra Bermuda Cayman Islands Cyprus Gibraltar Guernsey Hong Kong Ireland Isle of Man Jersey Liechtenstein Luxembourg Malta Singapore Switzerland United Kingdom 108 108 112 113 115 118 121 124 126 129 132 134 137 139 142 144 146 147 149 Data Annex 151 Notes 152 References 170 Index 179 List of Boxes 2.1 Structure of funds 2.2 Master-feeder funds 3.1 International arrangements on exchange of tax information vii 20 23 34 List of Figures 2.1 Legal strength in key financial centres, 2010 2.2 Regulatory quality in key financial centres, 2010 2.3 Corporate tax rates, as of June 2012 2.4 Asset profiles of administrators in major European jurisdictions, 2008 3.1 Number of TIEAs signed as of April 2012 3.2 Number of DTCs and TIEAs in force compliant with OECD standards, 2011 3.3 Compliance with FATF’s 40 + Principles on AML/CFT standards 3.4 Level of compliance with international standards, 2000–2005 assessments 3.5 Compliance with Basel core principles, 2003–2011 assessments 4.1 Evolution of gross public debt in EU and US, 2007–2017 4.2 Projection of aging-related spending in G-20 economies 4.3 Public budget balances of small financial centres 4.4 Change in banks’ external liabilities by counterparty, December 2007–December 2011 4.5 Global hedge fund asset flows and performance 4.6 Global private equity market investments and funds 4.7 Global net securitization issuance 4.8 Variability in GFCI rankings – top 40 Centres as of March 2013 6.1 Contribution of financial and business sectors to local economy, 2010 6.2 Total bank deposits, 2010 6.3 External assets and liabilities of banks, 2010 6.4 Cross-border portfolio investments, 2010 viii 10 12 15 25 38 39 49 58 59 64 65 69 73 74 75 76 101 109 110 111 112 List of Tables 2.1 Restrictions to access to bank information under international agreements 2.2 General outlines of tax systems in sampled jurisdictions, as of June 2012 3.1 Commitments to information exchange standards, as at 18 May 2012 3.2 Jurisdictions that apply the EUSD as of April 2012 3.3 Information sources on beneficial ownership of corporate vehicles 4.1 GFCI top 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78–9 Basel III, 78–9 Beijing, 20, 97 Belgium, 42 Bermuda, 13, 25, 26, 49, 88–9, 94, 109, 115–18 Bermuda Monetary Authority (BMA), 117 BIS, see Bank of International Settlements (BIS) Black hole, 70 British Virgin Islands, 22–3, 25, 75 Bush administration, 33 business models, 19, 60, 105 business services, 108, 109 Canada, 21 capital controls, capital flows, 5, 11–12 capital gains tax, 16, 17 capital requirements, 78 Capital Requirements Directive (CRD II), 78, 79, 80 captive insurance, 6, 11, 26, 88–9, 116, 119, 124, 154n16 Caribbean Financial Action Task Force (CFATF), 47 Cayman Islands, 6, 13, 18, 22–3, 25, 26, 68–9, 70, 75, 94, 101, 109, 111–12, 118–20, 158n39 Cayman Islands Monetary Authority (CIMA), 120 Cayman Islands Stock Exchange (CSX), 120 Channel Islands, 5, Channel Islands Stock Exchange (CISX), 127 China, 100, 129–30, 131 City of London, Bahamas, 6, 100 Bahrain, 100 balance of payments, bank deposits, 110–11, 125, 135 bank failures, 72–3 banking services, 18–20, 108, 110–11, 119, 127, 133, 134–5 bank levies, 78, 79, 161n20 Bank of American Global Wealth and Investment Management, 19 Bank of International Settlements (BIS), 56 bank runs, 80 bank secrecy laws, 6, 7, 11, 19–20, 42, 142, 148 Barbados, 35 179 180 Index closed fund countries, 21 Code of Conduct on Business Taxation, 40–1, 70 Collective Investment Scheme (CIS), 127 Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS), 87–8 community enhancement fee, 68 confidentiality, 7, 11, 18, 19–20 contract enforcement, 11 corporate ownership information, 51–3 corporate tax rates, 15, 16, 17 Costa Rica, 35 Council of Economics and Finance Ministers (ECOFIN), 40–1 credit default swaps, 81 Credit Suisse Private Banking, 19 crisis management, 79 cross-border capital mobility, 11–12 cross-border portfolio investments, 111–12 Crown Dependencies, 19, 35, 60, 70–2, 76, 94, 96, 100, 101, 111, 159n40 see also Guernsey; Isle of Man; Jersey current accounts, 82, 119, 145–6, 150 custodians, 21 customer due diligence (CDD), 117 Cyprus, 8, 13, 17, 22, 47, 67, 69–70, 109, 121–4, 164n16 debt financing, 68 defined contribution (DC) schemes, 66 Delaware, 33 Democratic People’s Republic of Korea (DPRK), 47 depositary functions, 85–7 deposit-collection activities, 110–11 deposit insurance, 6, 72 depository guarantee schemes, 80–1 deregulation, derivatives, 82 designated non-financial businesses and professions (DNFBPs), 49 Dodd-Frank Wall Street Reform, 78 domestic banks, 108 domicile levy, 17 double tax conventions (DTCs), 35, 38–40, 141, 148 dual criminality, 8, 142, 168n61 Dublin, 97, 132–3 Ecuador, 48 Edinburgh, 100 emerging economies, 2, 7, 20, 55, 103, 105–6 emerging financial centres, 96–102 Ethiopia, 48 euro, 77 Eurodollar market, 5, 82, 152n2 European Economic Area (EEA), 140 European Free Trade Association (EFTA), 139, 147, 149 European Insurance and Occupational Pensions Authority (EIOPA), 88, 118 European Savings Tax Directive (EUSD), 90–1 European Securities and Markets Authority (ESMA), 81, 83, 84 European Union (EU), 20–1 Capital Requirements Directive (CRD II), 78, 79 Code of Conduct on Business Taxation, 40–1 debt crisis in, 76 public debt in, 64 State Aid rules, 44–6 Taxation of Savings Directive, 41–4 European Union Savings Tax Directive (EUSD), 114, 141, 142 executive remuneration, 80 Index Experienced Investor Fund (EIF), 125, 135 expert funds, 21, 138, 167n50 Federal Reserve, 76 fiduciary services, 27–9 Financial Accounting Standards Board, 160n18 Financial Action Task Force (FATF), 3, 28, 30, 46–54, 84, 130, 154n20, 157n24, 157n25 financial centres advantages of, challenges for, 2, 102 competition from emerging, 96–102, 131 evolution of, 1–2, 5–29 impact of financial crisis on, 66, 67–72 legal advantages of, 7–11 levels of activity, 108–12 offshore, 1, 5–6, 18, 57, 72 regulatory advantages of, 11–13 scope of activities, 17–29 skills needed by, 95 survey of, 108–50 tax advantages of, 13–17 financial crisis (2007/2009), 1, 7, 103, 120 impact of, 62–77, 139, 144, 145 macroeconomic impact of, 63–72 regulatory changes and, 77–89 financial institutions, taxes on, 78, 80 financial regulation, 1–2, 11–13, 18, 77–89, 94–5, 103–5 financial sector, impact of financial crisis on, 72–7 Financial Sector Assessments (FSAs), 56 financial services, 108, 109, 111, 126 Financial Services Assessment Program (FSAP), 30, 55, 56–61 Financial Services Authority (FSA), 60 181 Financial Services Commission (FSC), 125 Financial Stability Board (FSB), 30, 54–6, 95 Financial Stability Forum (FSF), 30, 54–6 Financial System Stability Assessments (FSSAs), 56 Financial Transaction Tax (FTT), 80 first mover advantage, 105, 143 Fiscal Affairs Department (FAD), 57 fiscal austerity, 159n3 fiscal policy, 104–5 Foreign and Commonwealth Affairs Office (FCO), 120, 160n6 Foreign Commonwealth Office (FCO), 68 foreign entities, preferential treatment of, 31, 44–6 forfait tax, 14–15 France, 13 fund administrators, 21 fund management, 21 funds alternative, 22–5, 73–6, 82–5 expert, 21, 138, 167n50 hedge, 22–5, 73–5 master-feeder, 23, 24 retail, 20–2 structure of, 20–1 G-20 countries, 30, 32–5, 37, 39, 55, 56, 63, 65, 82, 95, 103, 152n7 G-7 countries, 30, 46, 57 German Restucturing Act, 79 Germany, 13, 82 Gibraltar, 8, 15, 37, 44–5, 94, 100, 124–6, 153n9, 165n18 global competition, 62 global coordination, 94–5, 103, 104–5 Global Financial Centres Index (GFCI), 96–9, 101–2, 150 global financial system, 1–2 182 Index Global Forum on Transparency, 32, 33, 156n5 global governance, 66, 82, 104–5, 106 globalization, 5, 6, global regulatory frameworks, 77–89 global wealth, 103, 105–6 Government Accountability Office (GAO), 50–1 Great Depression, 64, 78 Greece, 123–4 group solvency calculations, 88 group supervision, 88 Guernsey, 15, 19, 26, 35, 70, 71, 89, 100, 101, 109, 126–9 Hawaii, 26 health-care costs, 65 hedge funds, 22–5, 73–5, 153n13 high-income individuals, 14–15, 16 home-country supervisors, 59–61 Hong Kong, 8, 13, 20, 33, 49, 70, 94, 100, 109, 129–32 Hong Kong dollar, 131 HSBC Global Private Banking, 19 Iceland, 72 income taxes, 16, 17 incorporated cell companies (ICCs), 128 Independent Commission on Banking (ICB), 78 India, 100 individual cells, 128 information access restrictions, information exchange, 1, 2, 7–8, 10, 31, 33–6, 54–6, 92–3, 148, 152n5, 152n6 insurance, 26, 122–5, 127–8, 135 see also captive insurance; re-insurance interest rate ceilings, International Accounting Standards Board (IASB), 160n18 International Association of Insurance Supervisors (IAIS), 154n16 International Banking Facilities (IBFs), International Financial Services Centre (IFSC), 132 International Monetary Fund (IMF), 3, 30, 54–61, 114, 136 international portfolio investments, 108, 111–12 international standards, 3–4, 56–61, 106 Iran, 47 Ireland, 13, 17, 20, 22, 49, 67, 69, 76, 85, 86, 94, 132–4 Isle of Man, 5, 6, 13, 15, 17, 19, 26, 32–3, 37, 43, 70–2, 100, 109–10, 134–7 Japan, Japanese Offshore Market (JOM), Jersey, 15, 19, 37, 70, 71, 101, 109, 137–9, 153n10 labour costs, 103 labour market, 95–6 large economies, impact of financial crisis on, 63–7 legal advantages, 7–11 legal systems, 6, 11, 17 Lehman Brothers, 77, 120 licensing, 13 Liechtenstein, 7, 8, 37, 43, 70, 94, 96, 139–41 life insurance, 26, 135 London, 18, 20, 21, 24, 97, 100, 101, 116, 119, 149–50 London Stock Exchange, 150 lump sum taxation system, 14–15 Luxembourg, 5, 8, 11, 13, 17, 18, 20, 22, 33, 42, 47–9, 76, 85, 86, 91, 96, 100, 101, 142–4 Madoff scandal, 77 Madrid, 97 Malaysia Labuan, 35 Index Malta, 8, 15, 17, 22, 45, 70, 109, 144–6, 153n11, 168n66 market integrity concerns, 54 Markets in Financial Instruments Directive (MiFID), 80, 83 master-feeder funds, 23, 24 Mauritius, 35 Model Tax Convention (MTC), 7–8 Monaco, 17, 37, 43 money laundering, 46–8 Morgan Stanley Global Wealth Management Group, 19 mortgage-backed securities (MBSs), 76 Mumbai, 100 Mutual Assistance Directive, 91–3 mutual legal assistance treaties (MLATs), 35 Mutual Legal Assistance Treaty (MLAT), 141, 167n57 National Asset Management Agency (NAMA), 133 Netherlands, 22, 33 net securitization issuance, 76 Nevada, 33 Newcits, 24 New York, 20, 21, 23, 24, 97, 100, 116, 119 non-domiciled residents, 14 Northern Rock, 129 Obama, Barack, 33, 80, 93 off-balance sheet activities, 18 offshore financial centres, 1, 5–6, 18, 57, 72 see also specific financial centres Offshore Group of Banking Supervisors (OGBS), 50 offshore jurisdictions, 5–6, 18, 57, 72 Offshore Secrecy Jurisdictions, 93–4 Organisation for Economic Co-operation and Development (OECD), 3, 7–10, 30–40 183 outsourcing, 62 ownership information, 51–3 Pakistan, 47 payroll contributions, 16 payroll taxes, 80 pension expenditures, 65, 66–7 pension mobility, 103 personal income tax, 16, 17 Philippines, 35 place of domicile, 20–1 Ponzi schemes, 77 prime brokers, 21 Principe, 47 private banks, 18–20, 77, 140 private equity market, 75 property rights, 11 protected-cell companies (PCCs), 6, 26, 128, 145, 165n28 prudential concerns, 54, 77 public debt, 64–6, 74 Qualifying Recognised Overseas Pension Schemes (QROPS), 67 race to the bottom, 13, 106 regulatory advantages, 11–13 regulatory arbitrage, 11–13, 18, 82 regulatory frameworks, 77–89 regulatory reform, 1–2, 94–5, 103, 104–5 re-insurance, 26, 116, 117, 118, 145 reinsurance supervision, 88 Reports on the Observance of Standards and Codes (ROSCs), 55, 56 reputation, 17, 18, 30, 63, 94, 101, 103, 104, 120, 149 reserve requirements, reserves, 67–8, 70–2, 132, 136, 139 residency licenses, 14 resolution funds, 79 retail funds, 20–2 ring-fencing, 18, 155n2 risk taking, 79–80 184 Index sales tax, 16 San Marino, 43 São Tomé, 47 savings, taxation of, 41–4 secrecy, 6, 7, 11, 18, 19–20, 42, 142, 148 Securities and Exchange Commission (SEC), 81 securitization, 76, 78 Seychelles, 35 Shanghai, 20 Shenzhen, 20 short-selling, 81 Singapore, 5, 8, 13, 20, 33, 70, 94, 100, 109, 131, 146–7 ‘single-passport’ rules, 22 skilled workers, 95–6, 103 small economies, impact of financial crisis on, 67–72 Solvency II, 87–9 sovereign debt, 74 Special Administrative Region (SAR), 130 special investment vehicles (SIVs), 138 Specialised Investment Funds (SIF) Law, 168n62 special-purpose entities, special purpose vehicles (SPVs), 27, 138 speculation, 78, 81 State Aid rules, 44–6 Stolen Asset Recovery (StAR) initiative, 48, 157n27 Stop Tax Haven Abuses Act, 93–4, 117–18 structured finance, 27, 76 structured investment vehicles (SIVs), 63 sweep accounts, 18 Swiss banks, 7, 19–20 Switzerland, 5, 6, 8, 11, 13–15, 33, 42–3, 70, 82, 94, 96, 109, 147–9 systemic risk, 78 tax advantages, 13–17 taxation, 1–2, 5, 7–8, 82 corporate tax rates, 15, 17 of executive remuneration, 80 of financial institutions, 80 tax systems, 16 Valued Added Tax (VAT), 16, 17, 70, 125, 134, 137 Taxation of Savings Directive, 41–4 tax collection, 66 tax competition, 31, 32, 42, 57, 66 tax coordination, 90–5, 103 tax evasion, 7, 39–40, 66, 140–1, 149 tax exemptions, 44–5 tax havens, 6, 7, 13–14, 31, 32, 33, 35, 57, 93–4, 117–18, 156n6, 156n7, 156n10 tax information exchange agreements (TIEAs), 34, 36–40, 141 tax initiatives, OECD’s, 31–40 tax reform, 70–2 Term Asset-Backed Securities Loan Facility (TALF), 76 terrorism, financing of, 30, 46–8 tourism, 70, 116, 126, 144 trading book risks, 78 transparency, 31, 32 Troubled Asset Relief Program (TARP), 80 trust or company service provider (TCSP), 28–9, 48–53, 128, 136, 138, 154n19 trusts, 27–9, 51–3 Turkmenistan, 47 UBS Global Wealth Management, 19 uncooperative states, 66 Undertakings for Collective Investments in Transferable Securities (UCITS), 21–2, 85–7, 90, 122, 127, 132–4 United Kingdom, 14, 22, 33, 60, 79, 94, 149–50 United Nations (UN) Security Council, 47 Index United Nations Office on Drugs and Crime (UNODC), 48 United States, 6, 13, 21 Dodd-Frank Wall Street Reform, 78 public debt in, 64 upstream banking model, 19, 60, 72, 129, 138 Uruguay, 35 US dollar, 5, 152n2 US Virgin Islands, 35 Uzbekistan, 47 Valued Added Tax (VAT), 16, 17, 70, 125, 134, 137 Vermont, 26 Volcker, Paul, 78 Volcker rule, 78 185 wealth management, 19, 20, 77, 149 whistleblowing cases, 29, 155n21 withholding tax, 42–3 Working Group on Evaluation and Implementation (WGEI), 50 Working Group on Terrorist Financing and Money Laundering, 50 World Bank (WB), 3, 30, 55 World Trade Organization (WTO), 130 Wyoming, 33 yuan, zero/ten system, 70–1 Zurich, 100 This page intentionally left blank ... Mario Anolli, Elena Beccalli and Tommaso Giordani (editors) RETAIL CREDIT RISK MANAGEMENT Rym Ayadi and Emrah Arbak FINANCIAL CENTRES IN EUROPE A New Positioning in the Global Financial Market Post- crisis. .. clients and international and local financial institutions, big or small, have grown over the last decades as a direct result of the increasing importance of financial markets across the globe Traditionally,... well-known and reputable financial institutions that are based in international financial centres in the EU As of April 2011, the share of branch offices among all regulated banks in Jersey, Guernsey and