Credit crunch hits BFG

A fund administration group based in Cayman is being impacted by the effects of the economic downturn with the announcement of 25 redundancies at Butterfield Fulcrum.

Butterfield Bank confirmed it was informed by the management of Butterfield Fulcrum Group that several positions within BFG in the Cayman Islands have been made redundant, but that the bank itself is not laying off any workers.

‘We confirm that some of the employees impacted were previously employees of Butterfield Bank,’ said Conor O’Dea, managing director, Butterfield Bank (Cayman) Limited.

He said the changes are being effected by BFG management to help ensure that the company continues to be properly structured to serve its global client base with maximum efficiency in light of the recent downturn in global financial markets.

‘Global financial markets have seen an extraordinary level of turmoil in the last several months. This has impacted almost every sphere of economic activity. In the case of Butterfield Fulcrum, we have seen redemptions from our client funds, lower trading performance and fund closures,’ said a Butterfield Fulcrum spokeswoman.

‘As a response to this, we have had to review our global cost base and take steps to restructure our operations. This restructuring has resulted in certain positions being made redundant in Bermuda.’

She noted this restructuring will take place over the next nine months.

‘During this period we will work very closely with employees who are impacted to offer them assistance in finding alternative placement. We are giving significant notice to impacted employees to give maximum time for them to find other employment opportunities.’

There will be approximately 25 redundancies in the Cayman Island offices.

‘Even after this, Butterfield Fulcrum will have very substantial operations in Cayman and we remain firmly committed to this jurisdiction,’ said the spokeswoman.

‘We have planned this transition very carefully and believe that our service to current clients will not be affected. We will continue to service all of our clients, on a 24/7 basis, with our global service team and technology platform. The restructuring will be transparent and seamless to our clients.’

Mr. O’Dea expressed his confidence that the decision was a prudent one.

‘Although the loss of positions at BFG in Cayman is unfortunate, we believe that BFG management is acting in the best interests of the company and that employees are being treated fairly and with respect,’ he said.

BFG was established in 2008 through the merger of Butterfield Fund Services (a subsidiary of Butterfield Bank) and Fulcrum Group.