Building a new career in Guernsey isn't really an option
Guernsey has a lot going for it. Now only is personal income tax just 20%, but Guy Hands lives there, BlueCrest is moving there, and 15.2% of the population works in financial services.
Unfortunately, this doesn't mean that Guernsey presents a viable alternative for anyone hoping to escape tax increases in London.
Guernsey is home to branches of Barclays Wealth, Close Asset Management, Credit Suisse, Deutsche Bank, Man Fund Management, and Terra Firma, plus various other private equity funds, asset managers and private banks. However, recruiters say most of the jobs on offer there involve the administration of private trusts, custody, or offshore accounting.
"There are some fund manager roles on Guernsey, but a lot more of the opportunities are for accountants and fund administration professionals," says Amanda Gregory at recruiters Change International.
"Few roles here pay more than 100k," says Mike Bonsall at Guernsey-based recruiters AP Group.
Notably - and despite Guernsey's tax and jurisdictional advantages (it's not part of the EU and will therefore avoid the new hedge fund rules) - BlueCrest isn't moving lots of its hedge fund managers to Guernsey. Only two people are off to the island, with the entire systematic trading team, all credit traders, and lots of people from the rates, relative value and fx desks, going to Geneva instead.
Blame the housing market in Guernsey
This obviously has something to do with Geneva's growing status as a hedge fund hub, but it may also have something to do with Guernsey's housing market, which is split into two: the open market and the local market.
The local market is open only to long term Guernsey residents and features pleasant houses at reasonable prices. The open market is open to anyone and features (in our opinion) not-so pleasant houses at exorbitant prices.
Guy Hands' Guernsey home cost 6m. This is probably within the reaches of BlueCrest traders, but not their support staff - and unlike Geneva, back and middle office staff can't live elsewhere and commute in.
Recruiters like Bonsall point out that it is possible to buy or rent a local house if your employer secures a licence on your behalf. However, the licenses can be quite hard to come by, and they only last for three to five years. After that, you have no choice but to leave.
