ANOTHER financial company has decided to close its Guernsey branch in favour of another jurisdiction.
BISYS Fund Services (Guernsey) laid off 24 staff last month and the remaining eight will leave later this year.
It follows the consolidation of various banks over the past couple of years, with Jersey and the Isle of Man being chosen as the location for head offices.
The American-owned company took the decision after carrying out a business review.
‘There are two reasons for the decision to close it, ‘ said Gary Tenkman, head of financial services for Europe.
‘One was from a strategic standpoint. We looked at our European offices and decided it made sense to have one office in Dublin, given that it was growing and it was the most profitable office. ‘
The company has 400 staff there.
‘What we are trying to do is build economies of scale and location because pricing is a big decision-maker, ‘ he said.
He said that the cost of hiring local staff had not come into the equation.
BISYS operated a fund administration service for third-party funds and Mr Tenkman said all of the business had been taken over by other local companies.
Uncertainty surrounding one client was also a deciding factor in the review.
‘Our largest client was acquired about a year before and we were uncertain about their long-term commitment to us, ‘ he said.
Although he would not confirm whether staff had been given redundancy packages, Mr Tenkman said they had been given help in finding new jobs.
They were first told last summer that they could lose their jobs.
‘We have been very committed to minimising the impact on employees throughout the transition and it has gone very well, ‘ he said.
BISYS took over the St Peter Port-based business from Rothschild in 1999 and is trying to sub-lease its Sausmarez Street offices to another company.
Article posted on 16th August, 2004 - 12.00am
Loading ...
Most Commented: