Earlier this year saw the release of Vistra 2030 report, which has results from a survey of over 600 professionals and interviews with 20 business leaders from various sectors. The report addresses the most significant issues affecting global business today and examines how the fund and corporate services industry can help companies, private equity firms, family offices, and others thrive.
The report indicates a new globalisation is emerging, one with rising regionalisation, cross-border regulatory complexity and geopolitical tensions, underscored by three major themes:
1. Regulatory complexity is challenging firms everywhere. Fund and corporate service provider expertise is essential to help businesses steer through a complex patchwork of regulatory standards and operating environments.
2. Organisational optimisation is front and centre. Businesses are focused on optimising their structuring and operations, maximising the impact of their investments, navigating complexity and reducing waste.
3. Getting to the ESG starting line. Organisations must ensure robust ESG strategies that align with new and forthcoming compliance requirements.
The latest Vistra 2030 survey results can be sorted by jurisdiction. Looking at the Channel Islands-based business leaders’ responses reveals that:
– 60% of Guernsey and 44% of Jersey respondents selected ‘provides strong network of specialist corporate service providers that understand our needs’ when asked ‘What are the most important factors in deciding that a jurisdiction is important to your business?’
– When asked ‘How likely that a central (non-public) registry of beneficial ownership becomes the global norm between now and 2027?’ 60% of Guernsey respondents answered ‘very likely’ and 67% of Jersey respondents answered ‘somewhat likely’.
– When considering how likely that publicly available beneficial ownership information becomes the global norm, 40% of Guernsey respondents answered ‘somewhat unlikely’, compared to 44% of Jersey respondents who answered ‘very likely’.
Jonathan Ferrara, Managing Director of Vistra Channel Islands, said, “We have entered a new, post-pandemic era of cross-border remote working, evolving global supply chains, and geopolitical tensions. Despite global headwinds, Vistra 2030 shows that confidence is returning, with over half of survey respondents confident about their firm’s growth prospects, up from 38% in 2020 but still below the 75% who felt confident in 2018.’
Jonathan continued, ‘It’s encouraging to see the report showing growth, with the funds industry, M&A activity and asset protection identified as the top expansion drivers for the next 12 months. When looking at Channel Islanders’ responses when asked to ‘rank what would most contribute to your organisation’s growth over the next 12 months’, 22% of Jersey respondents and 20% of Guernsey respondents answered M&A activity”
“Vistra 2030 also highlighted the importance of ESG, with most respondents believing ESG reporting requirements will become the global norm by 2027. More than a quarter of respondents (27%) think ESG expertise will be important for attracting clients over the next 12 months. With regulators, customers, investors, and employees demanding that principles drive how organisations operate and what they report on, this is a critical time for businesses to think about their ESG strategy.”
Read the report to learn how the new globalisation is forcing fund, corporate, capital markets and private wealth market participants to modify their strategies and operations — and demand more from their service providers.