Future of the offshore industry: modern investment services

A quarter of a century ago, there were only a handful of offshore centres, and to many, their use was surrounded in "mystique". There were also very few professionals specialising in the offshore practice and those that did typically made use of only one or two jurisdictions. Over the last few decades, tremendous advances in technology and the telecommunications revolution have made it easier to access offshore facilities - so much so, that today's offshore industry has developed into a major global business, spanning all corners of the world, involving one way or another approximately half of the worlds financial transactions by value. Consequently, International Financial Services Centres are no longer surrounded by the "mystique" of twenty years ago. They are used globally, 24 hours a day, 365 days a year, as an integral and important part of the world's financial system.

Over the next few years, there will be major changes in world geopolitics. The current world population is increasing by 74.6 million a year. Presently, thirty per cent of the world's working population is unemployed. Additionally, the world's population is increasingly expecting higher standards of living and improved work opportunities. These radically changing patterns in expectations, population and wealth will continue to create political and economic instabilities. Governments in both the developed and the developing world will have no option but to continue to levy high taxes to meet these expectations and the associated costs of providing new and improved infrastructure. Thus, one does not need a "crystal ball" to see clearly that the offshore industry will continue with its rapid development and growth.

The users of International Financial Services Centres are becoming increasingly demanding with a high expectation for quality service at a reasonable cost, and access to sophisticated investment services - as well as confidentiality.

Tomorrow's offshore users will be looking for centres that can compete with today's onshore financial centres in the following areas:

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