A BUSINESS split has led to the trust division of Ansbacher being bought by Rand Merchant Bank. RMB International (CI) Ltd and subsidiary JG Trustees were part of the group until last month, when Ansbacher was sold in principle to Qatar National Bank.

Rand Merchant Bank is also part of Ansbacher’s former parent company, FirstRand Group, one of the largest financial services groups in South Africa with 32,000 employees worldwide.

The local fiduciary operation employs more than 40 staff and has appointed Geoff Gavey as managing director.

He has 20 years’ offshore finance industry experience and has worked as a director of the company since 1997.

‘I am delighted that following the Ansbacher sale, RMBI CI has been positioned as the FirstRand Group’s global fiduciary arm, based in Guernsey,’ he said.

‘The firm has 30 years’ experience as a trust and corporate services provider and, with a committed staff of 43, we are well placed to develop the business further, supported by the financial strength of FirstRand’s thriving global operations.’

Mr Gavey said that the fiduciary sector in Guernsey had become stronger and tougher since going through a period of mergers and acquisitions over the last few years.

In April 2001, the Guernsey Financial Services Commission introduced new laws regulating the sector, which employs about 2,500 people.

‘Generally, I think the industry here is very strong,’ said Mr Gavey.

‘The legislation has caused some companies to rethink their business, but I think overall most are positive for the future.’

It is now becoming harder to get new fiduciary work, which had led some companies to increase fees because of the increased costs of staff and regulation.

Part of the problem for smaller companies was meeting anti-money laundering regulations, in particular the ‘four-eyes’ principle, he said.

It has a strong South African client base, in addition to customers all over the world – principally high net worth private ones.

‘We are providing an affordable trust package for the South African market, but some businesses are taking the view that they don’t want to service those clients.’

* Mr Gavey is well known as a member of the record-breaking London to Paris Rowing Challenge team.