Welcome to your newsletter
GAT Members Luncheon Reminder
Members are warmly invited to our next Member's Luncheon being held this coming Wednesday 3rd April at Moores Hotel at 12.30pm.
We are delighted to announce that GAT Sponsor, Alternative Solutions Limited will offer a speaker on the subject of: Reducing the risk: How to get ahead of insider threat.
Our luncheon will also feature an industry update from Chairman Paul Hodgson. You can view the last update from our January luncheon here.
Discussion Paper on Proposals to Create a Single Fiduciary Handbook and Revise Pension Rules
Members will likely be aware that the Commission recently issued a discussion paper seeking feedback from all interested parties on potential enhancements to the regulatory framework under the Regulation of Fiduciaries, Administration Businesses and Company Directors, etc (Bailiwick of Guernsey) Law, 2000 (the "Fiduciaries Law") with the objective of ensuring that the regime continues to be both compliant with international standards and appropriate for the Guernsey market. Responses to this Discussion Paper will be considered by the Commission with a view to consulting on detailed policy proposals in due course.
The discussion paper makes proposals for the revision and consolidation of elements of the policy framework underlying the Fiduciaries Law, specifically:
1. The strengthening and reframing of Codes of Practice as a single Fiduciary Rulebook, in line with the GIFCS Standard; and
2. Revision of the Pension Rules to reflect industry feedback and consolidation of the conduct of business elements of the existing Pension Rules within the new single Fiduciary Rulebook, eliminating elements of duplication.
The first part of the paper is in the format of a Discussion Paper on the proposal for a Fiduciary Rulebook, while the second part provides feedback on the industry comments on the existing Pension Rules.
A copy of the combined Consultation Paper can be found here:
Respondents are encouraged to submit their comments online using the Commission's Citizen Space Consultation Hub which can be found here:
Responses to this Discussion Paper are sought by 30 April 2019.
GAT/STEP Technical Input
The GAT/STEP Combined Technical Committee have already met and are crafting a response to these proposals. If members have any matters that they wish the committee to consider, please contact us here.
Updates to the AML/CFT Handbook
A small number of revisions have been made in response to feedback on the final draft version of the Handbook which was published on 12 November 2018.
The key changes since the 12 November 2018 version are set out below:
- Section 2.8.1. – Money Laundering Compliance Officer (“MLCO”) – The wording has been revised to confirm that the MLCO is responsible for the firm’s compliance with its policies, procedures and controls, but that ultimate responsibility for the firm’s compliance with the statutory and regulatory requirements within the Bailiwick’s framework remains with the Board. The MLCO’s role is therefore one of monitoring the firm’s compliance with its internal controls and reporting to the Board on the outcome of this monitoring.
- Section 5.3. – Verification of the Identity of Natural Persons – The requirement to verify multiple nationalities has been removed. Firms are still required to collect information on the identify of an individual, including if the individual holds more than one nationality, but verification should focus on verifying the individual’s primary nationality.
- Section 7.10. – Trusts and Other Legal Arrangements – The requirement to identify and verify the identity of beneficiaries of trusts has been enhanced to capture persons who may not be named within trust documents, but who the trustee considers are likely to benefit from the trust, for example, because they have been named in a letter of wishes.
- Section 9.6. – Appendix C Businesses – Additional clarity has been added to this Section in respect of the circumstances when the Appendix C business provisions cannot be used, specifically where an Appendix C business (other than a Guernsey licensed fiduciary) is acting as trustee to a trust.
- Section 9.9. – Pooled Bank Accounts – An additional provision has been added to distinguish between the holding of customer funds on a client account by a fiduciary on a short-term basis, for example, before a trust or company bank account has been established, and the holding of funds in a pooled account for the purposes of providing treasury/cash management services.
- Section 11.3. – Monitoring Transactions & Activity Obligations - Rule 277 of the FSB Handbook and Rule 213 of the PB Handbook requiring a firm to consider the possibility for legal persons and legal arrangements to be used as vehicles for money laundering and terrorist financing have been reinstated.
- Appendix E – List of Domestic PEPs - The list now includes senior government posts following the restructuring of Guernsey’s civil service.
Feedback on The Revision of Regulatory Laws project
The Commission, together with the Law Officers of the Crown, have completed a review of the responses submitted as part of the engagement process and made amendments to the draft legislation where appropriate. In addition, feedback documents have been prepared setting out how they have responded to the comments and suggestions they received during the engagement process. The contents of the feedback statements has been agreed with the Law Officers of the Crown. In the feedback statements they have sought to address common concerns and comments raised by our stakeholders.
Copies of the feedback documents are available below:
- The draft Financial Services Commission (Enforcement Powers) (Bailiwick of Guernsey) Law, 2019
- The draft Banking Supervision (Bailiwick of Guernsey) Law, 2018
- The draft Protection of Investors (Bailiwick of Guernsey) Law, 2018
- The draft Regulation of Fiduciaries, Administration Business and Company Directors, etc. (Bailiwick of Guernsey) Law, 2018
EU reaffirms Guernsey as a Co-operative Jurisdiction as Guernsey commits to work with EU on sharing beneficial ownership information
Members will not have missed this news earlier in the month. By way of recap, ECOFIN has published an updated EU list of non-cooperative jurisdictions and confirmed that Guernsey is not one of them.
Deputy Gavin St Pier said:
"I welcome this decision. I was confident that any objective process would produce this outcome. We have consistently maintained as a matter of fact, that we are a jurisdiction of substance. We have worked closely with the EU, Jersey and the Isle of Man to demonstrate the existence of robust legal substance.
"I hope that it is now clear to EU Member States that they can have confidence in the work of the Code Group and consequently there is no further role for national blacklists, the basis of which are often arbitrary and prepared without any dialogue."
Public Registers Correspodence
A media flurry followed a bid by Tory MP Andrew Mitchell and Labour's Dame Margaret Hodge over a proposed amendment to the Financial Services Bill, requiring the UK to help all overseas territories and Crown dependencies set up a publicly accessible register by the end of 2020. Whilst the amendments were dropped earlier this month, they will be considered at a later date to ensure "sufficient time for proper debate".
You can review the correspondence between Deputy Gavin St Pier and Rt Hon Andrew Mitchell MP and RT Hon Dame Margaret Hodge MP below.
Discover Guernsey – GIBA produces interactive recruitment tool for the island’s financial services industry
GIBA has produced an interactive PDF that showcases the many positive aspects of working and living in Guernsey.
GIBA notes that "Guernsey has developed numerous niche leadership positions in financial services through excellence and innovation. The depth and breadth of expertise present in the island must be maintained to sustain an economically substantial financial services sector."
GIBA hopes that the document will be helpful in the recruitment process to explain the career potential of the local finance industry and answer typical questions that recruits may have about the island.
The PDF is interactive, linking to other relevant websites and useful sources of information. Practical advice on setting up home, registering with local service providers and exploring the Bailiwick is also included.
GAT Members may use the attached document as you see fit and are encouraged to share with your human resources department or send to local or off-island recruitment agencies where appropriate.
Please find below a link to the summary minutes for February's meeting of GIBA Council.
STEP Lecture Series 2018/19
Lunchtime Lecture Number 12
5th April 2019 – 12.00- 1.00pm
Dorey Room, St James
Topic: Lessons from the litigators – Pitfalls for Private Client
Speakers: Naomi O’Higgins & Emily Mailer, Howard Kennedy LLP
Naomi and Emily will focus on three key areas of practice for private client practitioners, namely (a) capacity (b) Wills and (c) trusts and the potentially contentious complications which can crop up in relation to them. They will provide guidance on these issues, from their perspective as London based private client litigators, with some practical tips on how best to avoid or mitigate them.
For a full biography and more details please visit stepguernsey.org
Family Offices Seminar Series
The latest in the 2019 Guernsey Seminar Series, which will be held in London, will provide a briefing on the progress of the strategy and explain how and why these developments ‘reflect the mood of the market’.
The event takes place on Tuesday 30 April at Eight Club Bank, London from 4.30-6.30pm, we encourage GAT members to share this event with off-island contacts.
To find out more and register to attend please visit the event website.
Carey Olsen Half Day Regulatory Conference – 30th April
Carey Olsen is hosting a half day regulatory and substance conference at which their experts will guide the audience through the GFSC's revised AML Handbook, the latest developments on Guernsey's new substance regime and provide an update on sanctions (including Brexit's impact).
Date: 30th April 2019
Venue: Duke of Richmond Hotel
Time: 08.00am – 12 Noon.
Please contact firstname.lastname@example.org to reserve your place.
We would like to give thanks to our Sponsors for their support.
- Asset Risk Consultants
- Alternative Solutions Limited
- Carey Olsen
- Walkers (Guernsey) LLP
The blessings and burdens of a Cayman trust dispute
Raw family wounds, generational rifts, and suspicions of wrong-doing are the bread and butter of trust disputes in the modern world.
In this interesting article, a Trustee asked the Grand Court of the Cayman Islands to bless a proposal to distribute the trust assets. Read the full article to learn about the case.