Industry News June 2018
Welcome to our June Newsletter
Members are advised that our next GAT luncheon is being held on Wednesday 4th July 2018 at Moores Hotel at 12.30pm.
This luncheon will include a presentation by Jonathan Gamble of Asset Risk Consultants: ‘Tales from the ARC side – a number of investment insights including reviewing investment management fees and performance oversight on illiquid assets’.
The event will also feature our regular whistle-stop briefing on current issues affecting the fiduciary industry delivered by our Chairman, Paul Hodgson.
Members are invited to view our updated privacy notice, which can also be found on our website.
Update on ‘economic substance’ debate
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.
Positively, the EU approach closely follows the previously published OECD guidance in relation to Action 5 of the BEPS project (Harmful Tax Practices). Of particular note, the EU has acknowledged that reduced substance requirements should be applied to collective investment funds and pure equity holding companies and is silent on the treatment of holding companies.
Whilst the governments of Guernsey and Jersey have yet to publish their proposed response to the substance requirements, these guidelines provide strong reassurance of a positive outcome for firms and their international client base.
Statement in response to the review of Air Transport Licensing Policy Letter
11th June 2018 – GIBA Chairman, David Oxburgh responds to the Review of Air Transport Licensing Policy Letter – read his response here.
GFSC licensing exemptions for Pension Schemes
GAT would like to draw Member’s attention to the licensing exemptions for Pension Schemes published by the GFSC.
The Guernsey Financial Services Commission will consider in certain circumstances, an application from the holder of a full fiduciary license for a discretionary exemption in respect of the regulated activities in section 2(1)(e) of the Fiduciaries Law regarding the formation, management or administration of Pension Scheme(s) or Gratuity Scheme(s). Such an exemption would be appropriate where the full fiduciary licensee is providing services to Pension Scheme(s) or Gratuity Scheme(s) in extremely small numbers i.e. where the total number of members does not exceed six. This may comprise of one scheme with up to six members, or up to six schemes with one member per scheme, or any combination of schemes where the total number of members does not exceed six. Details of how to apply for a discretionary exemption for a Pension Scheme or Gratuity Scheme are set out in the Fiduciary Applications page of the GFSC website.
Any exemption granted will be for a time limited basis of three years (if not surrendered before) from the date of issue and will require a renewal application after three years if necessary.
An exemption will only be granted where the members have confirmed, in writing, that they understand the impact this application will have on their scheme.
New GFSC Pension FAQ can be found on their website: https://www.gfsc.gg/industry-sectors/pensions/faqs
Registered Office Guidance
The Commission has today issued a guidance note in respect of the provision of registered office services by unregulated persons. The aim of the guidance note is to act as a reminder that the provision of registered office is a regulated activity and explain why that is the case.
The Soundbox Sprint innovation challenge
Last Friday, the Commission hosted a one-day event which challenged participating teams to develop digital solutions for one or more of the three pre-set challenges showing how technology could be used to:
1. Optimise efficient and effective client due diligence (and hence reduce costs for Bailiwick businesses).
2. Improve administration.
3. Help the financially excluded.
The event was a considerable success with entries submitted by 10 teams which included representatives of 35 Guernsey businesses including banks and other financial institutions, accountants, lawyers and technology companies. It provided an opportunity for those participating to share, discuss and unlock the potential of FinTech for the benefit of the Bailiwick and to highlight the capability of local firms in this important and growing area.
Prizes were awarded to teams from PwC, Midshore Consulting, Barclays, C5 Alliance, The ID Register and Guernsey Community Savings with the latter being the overall winner with a community savings concept.
Commenting after the event, the Commission’s Chairman, Drs Cees Schrauwers who was one of the judges on the day, said: “The Commission is delighted with the success of this initiative which we developed and hosted as part of our commitment to supporting innovation within the Bailiwick’s financial services industry. The teams that took part presented the judges with some very difficult decisions such was the high quality of all of the entries.”
GIBA Summary Minutes
Summary Minutes of the meeting held on 18 May 2018 can be viewed via this link:
Remember to check our Events Calendar for Industry presentations and other events that may be of interest.
STEP Lecture Series 2017/18
Kindly sponsored by Mourant, details of the last lecture in the 2017/18 series is listed below.
Summer Bonus Lunchtime Lecture will take place on 5th July 2018 at 12pm with guest speakers from BDO, Richard Morley, Michael Flaherty and Lisa Vanderheide.
The Requirement To Correct – the “last chance saloon” for HMRC disclosures
Tax transparency means that HMRC are more likely to become aware of non-compliance. This valuable weapon is strengthened by the “Requirement To Correct” legislation which requires UK taxpayers with outstanding tax liabilities relating to offshore interests to correct those liabilities by 30 September 2018. Outstanding tax liability may not be obvious and taking an “ignorance is bliss” approach may be expensive.
Time is running out and the potential sanctions are severe. The presentation will therefore examine key elements of the RTC legislation and explain potential pitfalls. Case studies will examine time limits, disclosure requirements and penalties. There will also be a general update on current HMRC activity with reference to HMRC’s data analysis systems and use of information already provided under the CRS.
Followed by a Q&A.
STEP Summer Carnival
Invitations will shortly be released for our popular annual event.
Guernsey Private Wealth Forum 2018
Join We Are Guernsey at the first ever Guernsey Private Wealth Forum where we will be discussing political risk and its impact on private wealth.
The event will feature a keynote speech from John Sawers, a former diplomat, followed by a panel discussion of professional advisers to wealthy individuals and their families. The two sessions will be separated by an afternoon tea.
The event will take place at Graysons Christ Church Spitalfields in London during the afternoon of Thursday 8 November.
If you are interested in sponsoring this event and would like to learn more about the opportunities available, please email Declan Maginnis.
‘Insolvency Issues’ hosted by Walkers
Walkers is to host its July Insolvency Issues seminar on 19 July 2018 at St, James, St Peter Port, Guernsey.
The Walkers St. James Series is a series of monthly, breakfast seminars taking place throughout 2018. Our expert lawyers will be presenting on a variety of pertinent topics. Talks will be focused and succinct with Q&A sessions to follow.
This seminar will focus on:
Singularis – Recognition of Liquidators
Voluntary or Compulsory liquidation
Please contact Sarah Brehaut for more information.
2017 Report and Accounts overview
CIFO is holding public events in Guernsey and in Jersey to mark the 27 June publication of the 2017 annual report and accounts. All are welcome to attend for an overview and opportunity to ask questions about the 2017 annual report.
We would like to give thanks to our Sponsors for their support.
- Asset Risk Consultants
- Alternative Solutions Limited
- Carey Olsen
- Walkers (Guernsey) LLP
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.
Share this on LinkedIn