How the Recession is a Good Thing for the Offshore Fiduciary Services Industry

How has the recession affected offshore fiduciary services? This is one of the questions that both clients and intermediaries often ask. The offshore fiduciary industry has undoubtedly been affected by the recession.   It can be more difficult to obtain financing for investments and where it is available, it is not available at the levels of previous years. Clients who have a large asset base in property, especially those who are highly leveraged, may have experienced depreciation in their asset value, together with cash flow difficulties as the banks call back on loans already made. However, change is not necessarily a bad thing.

The global recession has made the global economy take a long hard look at itself. The days of wild excess are behind us, but this should now mean that we get back to good quality ‘real' business being the order of the day.

For the entrepreneurs of the moment, the contraction of the economy is bringing some very interesting opportunities which would not have been available 18 months ago. Investment opportunities are everywhere and for the savvy businessman, money can still be made as long as you are willing to take a risk.

Whilst the economy was booming, people had a tendency to become lazy in their business making decisions and this is equally true of the offshore fiduciary services industry. Financing at attractive rates was easier to obtain than ever before, asset rich clients were everywhere and tax efficient schemes recklessly over used. Now that the turn has occurred, the reins have been tightened and we are getting back to the grass roots of business. Clients with money to invest are seeking the most competitive quote and demanding the best level of service from their offshore service provider. They are not willing to be sold a product but are rather utilising services that they require.

This is a good thing for the offshore fiduciary industry. Tougher competition means we all have to work harder to provide the best service possible for our clients. We also have to get back to basics in marketing and selling, ensuring that any clients looking for an offshore fiduciary services provider, consider using us. Providers on the Isle of Man have to look further afield for client opportunities and this will open doors to us to use vehicles and structures that we have not used before, giving us all valuable experience in different types of markets and entities, which can only be of benefit to our industry.  Where one person sees risk, the other sees an opportunity.

Gough fiduciary has developed a business model which embraces the difficult economic climate. We are providing bespoke offshore solutions for high net worth individuals, both on the Isle of Man and beyond. We tailor our offering to the ultimate needs of the client, working with the intermediaries best suited to the individual client. Being able to draw on a wide range of in house legal expertise in a number of areas allows us to provide good, commercial advice on both the transaction and the vehicle used. We believe that this enables us to offer a high quality competitive service standard.

For more information on fiduciary services, please contact Suzanne Ridley at Gough fiduciary.

Article posted: 15/09/2009