Industry News July 2018
Welcome to our July Newsletter
Thank you to those who attended our June luncheon which featured a presentation by Sponsors ARC giving us insight into the investment world and the pitfalls to be aware of for fiduciary assets under management. A copy of the slides can be found in the sponsors section below.
Members may be aware of the EU mandatory disclosure regime for cross-border transactions which came into effect on 25 June 2018. There are several points to note in relation to the regime. Members are advised that our next GAT Luncheon will take place on 3rd October 2018 at Moores Hotel and attendees will receive an outline of the changes by Tony Mancini of KPMG, valuable GAT Sponsors. The usual booking link will follow in our August newsletter.
GAT Summary Minutes
Summary Minutes of the committee meeting held on 4th June 2018 can be viewed via this link:-
As we mentioned in the last newsletter, the European Union has published guidance on its expectation of de jure ‘economic substance’ requirements for companies resident in the ‘criterion 2.2 jurisdictions’ – i.e. jurisdictions identified by the EU whose tax regimes could attract profits without real economic substance – which includes the Channel Islands
Members of the GAT/STEP Combined Technical Committee were invited to meet with the State of Guernsey Tax and Policy team earlier in the month to discuss their initial thoughts on how to tackle this matter. This was a useful session and the Technical Committee felt positive regarding the suggestions made.
It was noted that the crown dependencies are working very closely with each other to ensure complete alignment across the jurisdictions.
A full update will be presented this Summer to the public and industry.
“Compliant” rating for Guernsey from the OECD’s Global Forum on Transparency and Exchange of Information for Tax Purposes
The Global Forum now has 153 members on equal footing and is the premier international body for ensuring the implementation of the internationally agreed standards of transparency and exchange of information in the tax area. Through an in-depth peer review process, the restructured Global Forum monitors that its members fully implement the standard of transparency and exchange of information they have committed to implement.
The rating follows the second round of Global Forum peer reviews to assess compliance with the international standard on tax transparency and exchange of information on request.
Guernsey and Jersey were both rated Largely Compliant after the first round of reviews ended in 2016. While Jersey and the Isle of Man were two of the first jurisdictions reviewed as part of the second round, Guernsey’s did not take place until August 2017. Confirmation from the OECD that Guernsey is Compliant matches the ratings of the other Crown Dependencies.
Deputy Gavin St Pier, President of the Policy & Resources Committee, said:
“Guernsey being rated as Compliant by the OECD’s Global Forum is very welcome, there is no higher rating, but should be of no surprise to anyone who knows us and understands the high standards we maintain.”
GIBA Welcomes Approval of Open Skies Policy Letter
GIBA has responded to the States of Guernsey approval of the Open Skies Policy Letter.
GIBA Chairman David Oxburgh said: ‘With transport links having been the biggest election issue two years ago, it is encouraging that there was such a full debate on the Air Transport Licensing Policy letter, with most States members taking an active part in the debate on this critical issue.‘
Thematic Reviews undertaken by the Financial Crime Division of the Commission
The 2017 Thematic on Financial Crime Governance Risk and Compliance in the Fiduciary Sector can be viewed via the link below;
GIBA Summary Minutes
Summary Minutes of the meeting held on 5 June 2018 can be viewed via this link:-
Remember to check our Events Calendar for Industry presentations and other events that may be of interest.
Guernsey Private Wealth Forum 2018
Still time to support the first ever Guernsey Private Wealth Forum!
The event will discuss political risk and its impact on private wealth. The afternoon will feature a keynote speech from Sir John Sawers, a former diplomat, followed by an afternoon tea and drinks reception. Session two will consist of a panel discussion of professional advisers to wealthy individuals and their families. Topics will cover;
- Political risk – the 5 Ws
• Geopolitics and its impact on the financial markets
• Other concerns of international families
• Considerations of advisers
The event will take place at Graysons Christ Church Spitalfields in London during the afternoon of Thursday 8 November. There are still sponsorship opportunities available or alternatively you can purchase individual tickets. To find out more please email Declan Maginnis.
Charles Cochrane of Cochrane Adams Fine Art Agents
Susan Johnson, of Bircham Dyson Bell
invite you to
Trustees: The Joys and Pitfalls of Owning Art
Practical Solutions and a Market Update
On 13th September 2018
Old Government House Hotel
St Ann’s Place
St Peter Port
By 19th August 2018
8am buffet breakfast
Programme will include:
Update on the Art Market (Buying and Selling, Auction Guarantees and Chattel Licenses)
Practical Solutions and Collection Management
‘Trustee Applications’ hosted by Walkers
Walkers is to host its August Trustee Applications seminar on 16 August 2018 at St, James, St Peter Port, Guernsey.
The Walkers St. James Series is a series of monthly, breakfast seminars taking place throughout 2018. Talks will be focused and succinct with Q&A sessions to follow.
This seminar will focus on:
- Beddoe Applications
- Momentous Decision Applications
- Directions Applications
Please contact Sarah Brehaut for more information.
We would like to give thanks to our Sponsors for their support.
- Asset Risk Consultants
- Alternative Solutions Limited
- Carey Olsen
- Walkers (Guernsey) LLP
Tales from the ARC side – presentation slides
Members at the recent GAT Luncheon enjoyed a presentation by Jonathan Gamble and Alex Clubb of Asset Risk Consultants titled, ‘Tales from the ARC side – a number of investment insights including reviewing investment management fees and performance oversight on illiquid assets’.
For the benefit of members who could not attend, you can view the slides via the link below:-
A sting in the tail: the latest instalment from the Crociani litigation
Although the substantive judgment in the Crociani litigation was handed down on 11 September last year, that vine still had some fruit to bear. In particular, two of the inquiries ordered by that judgment have now been decided in a subsequent judgment, which is the subject matter of this note. This subsequent judgment is particularly illuminative of the approach taken by the Royal Court when assessing liability of trustees for the loss of growth in the value of trust assets that were paid away in breach of trust.
The GDPR and the Channel Islands
Guernsey and Jersey have recently reformed their respective national data protection laws in view of the entry into effect of the General Data Protection Regulation (Regulation (EU) 2016/679) (‘GDPR’). Here, Huw Thomas and Alexandra Gill highlight the key areas of the reform.
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