The client base of Monaco’s financial market is undergoing profound change: the pressures generated by fiscal transparency are reducing the numbers of off-shore clients, and they have not yet been replaced by an on-shore clientele. The value of assets deposited in Monaco is now declining after increasing continuously for many years. A new growth strategy for the future remains to be defined.
On-shore clients are looking for competitive management services of the quality they are already accustomed to in the leading financial centres (London, New York, etc.). Off-shore clients, however, are looking above all for a “safe haven” with no special skills and with no real concern for management costs. In general, management companies offer high-quality services at very competitive rates. Consequently the number of financial companies in Monaco, and assets under management, are increasing. Over the last ten years asset management companies have developed strongly, creating jobs in Monaco. Today some possess a structure, a shareholder base, skills and a size that allow them to invest and become the driving force behind the management sector in the Principality. Often their managers live locally. Under the control of the Monegasque authorities, they are qualified to manage high-quality financial assets, operating with unimpeachable professional ethics and in total confidentiality. Asset management companies are generally run by entrepreneurs who represent a stable interface for their sophisticated clientele. The legislation governing financial activities, adopted by the government of the Principality in September 2007, has enabled a genuine management sector to develop in Monaco, particularly through the creation of companies with an activity extending to discretionary and collective management.
An attractive centre
Global financial assets are expanding rapidly. Monaco remains a very attractive financial centre for “high-quality” wealthy individuals. The opportunity for expansion exists. The government has clearly expressed its wish to attract new HNWI residents to Monaco. The department for Tourism and our embassies abroad have launched a wide-ranging promotional campaign for Monaco which will have a positive impact. Monaco’s open, ethical image is becoming better known, enabling us to attract more “on-shore money”. The future development of Monaco’s financial market involves the expansion of existing asset management companies and the possibility of attracting others. Bain & Company and other qualified authorities state that we could and should fix growth targets. These ambitions are in line with the desires expressed on many occasions by our Sovereign and with the spirit of the September 2007 legislation.