Corporate services: trends shaping the future

In this Insight, Gavin Carruthers explores the role of a corporate services director and examines emerging trends in corporate services, including the integration of technology, compliance outsourcing, and sustainability, shedding light on how these factors shape the sector’s future.

Key responsibilities of a corporate services director

The role of a corporate services director (CSD) involves several primary responsibilities, particularly in managing client relationships and ensuring the delivery of services in an efficient, timely and professional manner. As the highest point of escalation for client matters, the CSD acts as a trusted adviser and oversees the entire client relationship, ensuring that their team provides services that meet the highest standards of client satisfaction.

In addition to managing client relationships, they also play a key role in risk management, serving as the first line of defence for managing risks within the corporate service provider’s business and for their clients’ business. These risks can relate to areas such as anti-money laundering, governance and fraud, where they are responsible for ensuring suitable systems and controls are in place to mitigate risks and ensure proper operation. This includes overseeing proper due diligence before executing transactions and acting as a signatory on the client’s behalf.

Another area of responsibility is managing the internal team. CSDs must ensure that the team is empowered to carry out its duties, meet key performance indicators (KPIs), and has access to the resources necessary for professional development and career progression.

Meeting responsibilities

An important aspect of our role is attending client board meetings, as we often sit on entity boards. These meetings, which typically include client advisers, are held to ensure that entities meet statutory and investor obligations while discussing the entity’s assets and objectives.

We also attend regular meetings with colleagues to discuss ways to improve client services, explore new service offerings, and share knowledge of industry trends and regulatory changes. Such meetings are essential for making sure client services remain up-to-date and are delivered as smoothly as possible.

Essential skills for success

To be successful in this role, three key skills are essential: communication, proactivity and adaptability.

Effective communication is paramount, as corporate services often involve managing multiple parties - clients, advisers and service providers. The ability to communicate clearly and effectively ensures that all parties are aligned, and that all legal and regulatory obligations are explained in a clear manner. Additionally, strong communication with the internal team is necessary so that everyone has the tools and resources needed to fulfil their duties and work towards common goals.

Proactivity is another essential skill. Given the frequent need to meet statutory, regulatory or investor reporting deadlines, the ability to anticipate and plan for upcoming requirements is key to avoiding last-minute pressures. A proactive approach helps ensure that client needs are managed effectively and well in advance.

Adaptability is the third key skill. The corporate services landscape is dynamic, with fast-changing tax and regulatory environments, meaning plans can change rapidly. The ability to prioritise issues and pivot to new solutions is fundamental to the role.

Staying up to date with industry changes

The financial services industry in Jersey operates as a close-knit community, with law firms, administration businesses, regulators, government agencies, and industry bodies working together to keep the sector up to speed with the latest developments. Events and briefings held by these organisations provide valuable insights into changes that may impact clients and the broader industry.

In addition to attending industry events, we engage in continuous professional development by reading about regulatory changes in other jurisdictions, such as the EU and the UK, that may have implications for Jersey. Keeping up with global events is also important, as broader geopolitical and economic trends can significantly influence both local work in Jersey and our clients’ business.

Trends in corporate services

The corporate services industry is constantly evolving, driven by changes in the macroeconomic environment, global tax regimes and regulatory requirements. One significant trend is the increasing demand for outsourcing the compliance and data management functions to specialist corporate service providers. This shift has increased the need for clients to outsource specialist support from providers such as Praxis to meet complex regulatory and reporting obligations.

Another notable trend is the rapid advancement of technology, including integrating AI and automated workflows. AI will continue to enhance service delivery by providing greater efficiencies and offering clients more sophisticated reporting and real-time access to data.

Sustainability is another key trend that is shaping the professional and financial services space. As a leading international financial centre, Jersey has a significant impact on global sustainability efforts. Many corporate clients are focusing on impact investing, sustainability funds, and sustainability reporting as part of their commitment to addressing global challenges. Jersey is taking steps to support these efforts, positioning itself as a leader in helping businesses contribute to a more sustainable future.

In conclusion, partnering with a corporate services provider offers numerous benefits. A CSD brings a multifaceted skill set to the table, staying ahead of industry trends and adapting quickly to market changes. Their solutions-oriented approach ensures that your needs are met efficiently, helping you navigate the complexities of a fast-paced and evolving business landscape.

If you would like to find out more about our corporate services, please contact Gavin.