The BCG said in its “Market-sizing” report that while offshore wealth had increased by 6.1%, stronger growth in onshore wealth during 2012 had led to a slight decline (from 6.4% in 2011 to 6.3%) in offshore wealth’s share of global private wealth in 2012.
Over the next five years, offshore wealth is projected to increase moderately, reaching $11.2trn by the end of 2017.
However, BCG said, while the offshore model does remain viable – given investors, particularly HNW investors, seek overseas diversification – there are challenges ahead for offshore centres. Not least of these challenges are those posed by governments clamping down on tax avoidance and evasion.
The report said: “In challenging fiscal times it is not surprising to see governments placing perceived tax havens under a regulatory microscope and seeking to obtain information on depositors in the hope of minimising tax evasion and maximising tax revenues.
“It is against this backdrop that offshore centres must position themselves not only as possessing skills and expertise that cannot easily be found onshore but also embracing full transparency and integrity.”
