The event took place just as the latest Global Financial Centres Index, compiled by the London-based think tank Z/Yen Group, showed Hong Kong closing the ratings gap with London and New York, and drew luminaries from all corners of the wealth management industry, as well as prominent academics, politicians and broadcasters. Among the topics discussed were exchange of information and transparency, tax sovereignty, and whether size matters when it comes to IFCs.

It was widely agreed that financial centres have to meet OECD standards on tax information exchange, and this was the right direction to go in regardless of moral reservations concerning privacy. The feeling was that this was a concession worth making as long as independent jurisdictions retain the right to set their own tax rates without being penalised.

The issue of size arose, to vigorous debate: to what extent should international finance be confined to small islands or landlocked economies, and can it play a part in larger economies without distorting their other industries? Given that the debate took place in the Farmers Club in Whitehall, London – the top financial centre according to the Z/Yen index – this was felt by some to be a moot point.

In a world where any form of tax competition to attract financial flows and deposits is frowned upon – despite myriad tax breaks for other industries – small IFCs are expected to compete on infrastructure, regulation and talent with places such as London and New York. Given this, the best option for smaller centres may be to become a world-beating centre in one or two things; for example, Bermuda can be the world’s best insurance regulator and the Cayman Islands can be the top hedge funds regulator.

The amount of regulation coming from the European Union and the G20 means parts of the industry will be over-regulated, and it was suggested there is room for an IFC to stand up for good regulation, as opposed to over-regulation.
The opinions expressed were wide-ranging, and challenged popular misconceptions about the offshore industry. It was noted how dependent our economic system is on globally mobile capital, and how dangerous it is to allow financial protectionism to flourish.

Despite the troubles besetting the offshore world, it was recognised that there are also plenty of opportunities for financial centres today arising from wealth creation in Asia, as well as increasing taxes in some parts of the world.

The inaugural Musing Dinner of the year focused on the theme of “Long Finance” and drew luminaries from all corners of the wealth management industry, prominent academics, politicians and broadcasters. Among the topics up for discussion was the concept of how we can devise a better long-term store of value that could supersede fiat currencies; how capitalism could move more towards preserving value than extracting it; and how best the present generation should provide for the next.

Chairing the debate was Professor Michael Mainelli, the co-founder of Z/Yen, the London-based think tank, with other guests including Faisal Islam, Economics correspondent at Channel 4 News; Clive Bannister, group managing director, insurance and asset management, HSBC Group; Jeremy Smilg, Merrill Lynch’s head of product and wealth solutions; Kate Leppard, executive director, Schroders Charities; Richard Howarth, director of private banking at The Standard Chartered Private Bank; and David Gauke, MP for Southwest Hertfordshire and Shadow Treasury frontbencher.

The guest of honour however was Stewart Brand, president of The Long Now Foundation and an award-winning author who is credited with being the first to use the term “personal computer” in print. Mr Brand’s observations were as wide-ranging as they were challenging and many fascinating projects came to light, not least The Long Now’s creation of a 10,000 year clock and its Rosetta Project, which has seen 15,000 languages etched on a nickel disc and launched into space.

Amid such fascinating insights the evening flew by for the 30 plus attendees, aided by the superb fare which is the trademark of the Farmers Club in Whitehall. And while the aim of the night was to get everyone thinking more about the fullness of time, for GoldFinger the next Musing Dinner can’t come soon enough.