TRUST professionals have warned that a Tax Information Exchange Agreement with the UK could deter new business from using the Island in future.

Members of the Jersey Association of Trust Companies say that although they ‘accept absolutely’ that the agreement must be signed, potential clients might worry about the security of their banking details.
There is also continuing concern that other competitor finance centres like Singapore will not be required to sign up to the agreements.

Association chairman Nick Landor, pictured, said: ‘People do accept that the agreement is a necessity and that it is demonstrating that we have nothing to hide. The only issue is the level playing field – it is not equitable if places like Jersey are acting in good faith, but other jurisdictions are not subject to the same pressure.’ Mr Landor said that clients who had legitimate reasons to use Jersey trusts had a right to the same privacy as anyone else. He added that privacy was not the same as banking secrecy, which is a legal right in Switzerland and Liechtenstein but has never been an option in Jersey.

‘I do not have much concern that business will move away, because the trust industry is based on relationships,’ said Mr Landor. ‘But there will be an impact on new business if people perceive – wrongly – that the UK Revenue could get their hands on information and could have access to what they are not entitled to.’