C1 - Development & Features Of Offshore Centres

Question 1

OFFSHORE INDUSTRY

Answer 1

Jurisdiction seeks to create competitive advantages through laws and which provides financial services primarily to non-residents

Question 2

Users

Answer 2

High net worth clients
Entrepreneurs
Trading companies
Charities

Question 3

Uses

Answer 3

Private client wealth structuring
Investments
Captive insurance
Pension planning

Question 4

Features

Answer 4

Low tax
Mod/light regulation
High expertise
Privacy/confidentiality

Question 5

Crown dependencies

Answer 5

Jersey - fund admin, banking, trust company business sector

Guernsey (sark, alderney) - asset man, banking, fund admin, insurance, trust and fiduciary

IoM - Banking and insurance

Question 6

Overseas territory

Answer 6

BVI - hedge funds

Gibraltar - banking, insurance, fund admin, trust company business sector

Question 7

Consider when choosing offshore centre

Answer 7

Objectives
Country of residence
Activities
Tax/legal advice

Question 8

Influence decision

Answer 8

Legal system characteristics
Confidentiality
Political infrastructure
Regulation standards
Reputation
Taxation

Question 9

Niche markets

Answer 9

Developed niche positions in international markets
Guernsey - captive insurance
Compliant Islamic features offered in key financial sectors, may be a feature to consider

Question 10

Legal system considerations

Answer 10

Familiarity
Flexibility
Lack of exchange control regulations - freedom of fund movement
Range of entity/products - incorporated cell companies, incorporated limited partnership, limited liability partnership, protected cell company
Responsiveness
Access to stock markets
Asset protection