THE Association of Investment Companies has written to the UK Treasury Select Committee in support of the Channel Islands’ position as a financial centre and home to a growing number of investment companies.

The AIC is keen to ensure that MPs understand the legitimate role that ‘going offshore’ can play. It comes in the light of the International Monetary Fund last week announcing that jurisdictions should no longer be referred to as onshore or offshore, just good or bad.

AIC director-general Daniel Godfrey said the impact of such centres on the UK’s tax take was high profile at the moment and it was understandable that MPs wanted to look into it.  ‘However, the issues are diverse and complex. Unfortunately, debates on this agenda all too often start with a presumption that ‘going offshore’ is inherently undesirable.

‘In fact, that is not the case.  Using domiciles such as the Channel Islands can secure significant consumer benefits as it allows our members to offer investment strategies that cannot be competitively delivered by a UK-based investment company.’