Consultation on Preferred Creditor Status for the Guernsey Banking Deposit Compensation Scheme
The States of Guernsey’s Finance Sector Development Unit have issued a consultation in respect of the granting of preferred debt status, for those qualifying deposits, covered by the Guernsey Banking Deposit Compensation Scheme. The link to the consultation is as follows:
We would encourage members to consider the consultation and respond as required by 17th June 2016, in writing and preferably in a format that can be read by Microsoft Word.
All responses responses via email should be sent to the following address: firstname.lastname@example.org
Alternatively they may be posted to:
Finance Sector Development – GBDCS Preferred Debt Consultation
Raymond Falla House
PO Box 459
Letter from President of Policy & Resources to UK Prime Minister
Please find below a letter from our newly elected President of the Policy & Resources Committee to the UK Prime Minister, as well as a other ancilliary documents that provide background information:
You will note that the letter refers to the commitment to international standards. Clearly if automatic exchange of beneficial ownership information becomes an international standard then Guernsey will need to comply.
The ICIJ have published what they state as “likely the largest-ever release of information about secret offshore companies and the people behind them, based on data from the Panama Papers investigation. The searchable database will include information about more than 200,000 companies, trusts, foundations and funds incorporated in 21 tax havens, from Hong Kong to Nevada in the United States”
The Guernsey Financial Services Commission (“GFSC”) would like to take this opportunity to remind firms of the importance of taking their responsibilities in respect of cyber security seriously and of their obligation to report all serious or significant incidents to the GFSC. This would include notifications in respect of any Panama Papers related breaches.
Further details can be found under the Legislation & Guidance sections of the website: Guidance Note on Cyber Security.pdf or by contacting the Fiduciary Supervision Policy and Innovations Division at email@example.com
Annex to FSB Handbook
The Commission would like to undertake a short consultation regarding proposed changes to the Annex to the Handbook for Financial Services Businesses on Countering Financial Crime and Terrorist Financing (“the AML/CFT Handbook”) on the use of technology in the customer due diligence process.
You can view the full Annex here: Using Technology for CDD Purposes – FSB Handbook Annex (Consultation)
The Annex was issued towards the end of 2015 to enable firms to use technologies such as digital signatures and electronic verification in the client take-on process and when due diligence documentation has to be updated, including where this technology is delivered through the internet or by tablet and smartphone applications. These revisions to existing rules were intended to provide positive affirmation that new technologies have a part in this important process. However following comments that new guidance on using online utility bills was too restrictive and that there was insufficient clarity on the interplay between the existing rules in the Handbook with those in the Annex regarding certification and e-certification. Accordingly, the Commission proposes the following changes to the Annex: –
Online Utility Bills
The guidance on online utility bills has been removed in its entirety. Whilst there are inherent risks in solely relying on online utility bills, Paragraphs 92 and 93 of the AML/CFT Handbook state that identification data does not have to be in paper form and that external electronic databases such as the internet, information published by government departments and subscription databases can be used. Accordingly, the evidential value of electronic checks should depend on the assessed risk of the business relationship or occasional transaction and it is for the financial services/prescribed business to decide its risk appetite. In addition where the firm is not familiar with the form of the evidence of identification data, it should take reasonable measures to satisfy itself that the evidence is genuine.
Should you be interested in guidance being issued on the use of online utility bills, the Commission will consider this as part of the wider changes proposed to the AML/CFT Handbook which it will be consulting on later this year.
There was a perceived conflict between the Rules and Guidance in the Annex and the Rules and Guidance in the main body of the AML/CFT Handbook regarding certification. In particular, Rule 101 states that a financial services must ensure that the copy documents have been certified by a suitable certifier, however this applies to identification data in paper form. Therefore, new guidance (paragraph 37) has been inserted into the Annex to clarify that the integrated controls inherent within electronic verification applications can provide an alternative means to that of Rule 101 when firms are identifying and verifying non-resident individual customers.
Various minor amendments have been made to the Annex to make it clear that the requirements for electronic certification of identification data in paper form is different to those when using technology to verify identity.
Wider Changes in 2016
The proposed revisions to the Annex are short term fixes which are aimed at alleviating industry’s main concerns. It is currently the Commission and the States of Guernsey’s Policy and Resources Committee’s intention to consult on significant changes to the Regulations, Rules and Guidance in the AML/CFT Handbooks in the 4th quarter of 2016. The Commission will look to incorporate the using of technology in customer due diligence process within the main body of the AML/CFT Handbook.
If you have any comments on the changes to the Annexes please respond to Nick Herquin by 13 June 2016.
Remember to check our Events Calendar for Industry presentations and other events that may be of interest.
Step Guernsey June Events 2015/16 Series
STEP Guernsey Lecture Series 2015/16 sponsored by Mourant Ozannes
STEP Members and Non-members welcome.See details below.
NB The 2016 STEP AGM will be held preceding EL 10 on 22nd June 2016.
To book CLICK HERE or contact E: firstname.lastname@example.org
Lunchtime Lecture No. 10
Title: Countering Terrorism Finance – The Current Regime
Guest Speaker: Adie Hale and Tony Doyle – Guernsey FIU
Date: 8th June 2016
Time: 11.45am for 12pm
Venue: Dorey Room, St James
Evening Lecture No. 10
Title: Tax, Morality & the Personal Responsibility of Tax Payers
Guest Speaker: Catherine Bell, Robert Payne & Patricia Moon, Gowling WLG
Date: 22nd June 2016
Time: 5.15pm for 5.30pm
Venue: The Dorey Room, St James
GAT, STEP Guernsey, Locate Guernsey Breakfast Seminar
You are invited to this tripartite hosted event organised by: GAT, STEP & Locate Guernsey & Sponsored by Mourant Ozannes
Join Guest Speaker James Quarmby Head of Private Wealth Stephenson Harwood, for an exclusive breakfast briefing on 9th June 2016.
James Quarmby is an International Tax Lawyer, who has been made infamous defending David Cameron’s implication in the Panama Papers. He is highly regarded amongst clients and peers and a regular visitor to Guernsey, conducting extensive funds business locally.
When: 9th June, 2016
Where: The Dorey room, St James
Time: 7.45am for 8.00am start, duration approx. 60 mins.
7.45am Registration is open with tea, coffee, bacon rolls and pasties served.
8.00am Intro from Mark Pattimore (GAT Chair).
8.05am Locate Guernsey HNWI/UK RND campaign – working together.
8.15am Guest speaker, James Quarmby will be discussing the following topics:
• The extra territorial impact of the ‘prevention of tax evasion’;
• Advocacy v transparency;
• CRS impact on capital flows.
8.45am Panel session with Mark Pattimore, James Quarmby, Alasdair McLaren (STEP Chair).
9.00am Close by Richard Le Tocq, Locate Guernsey.
Shanghai Family Office Union Visit
The Chairman of the Shanghai Family Office Union, Mr Antoine Kuo, will be visiting Guernsey on 13 and 14 June and would be happy to accommodate anybody who would like to meet with him. Please email K.Clouston@guernseyfinance.com
Employment Breakfast Seminars
Carey Olsen are hosting three employment breakfast seminars, covering the following topics:
• Data Protection in the digital workplace (Tuesday 7 June)
• The changing face of employment contracts (Wednesday 28 September)
• Happy faces: ensuring employee well-being (Wednesday 23 November)
Speakers are from our employment team include partners Mark Dunster and Elaine Gray and senior associate Rachel Richardson.
The details of the event are as below:
Date: As indicated above
Venue: Dorey Room, St James Concert Hall
Registration & Breakfast: 8:00 – 8:30 am
Seminar: 8:30 – 10:00 am
If you are interested in attending any of the seminars, please contact: EmploymentSeminarSeries@careyolsen.com
DLA Piper on 2016 Data Protection Laws of the World Handbook
A pan-jurisdiction team of lawyers from Carey Olsen has once again worked with international law firm DLA Piper to produce the new edition of the DLA Piper Data Protection Laws of the World Handbook.
The guide is a handy reference tool for use by clients and contains an overview of the law in a number of key jurisdictions worldwide. Carey Olsen was selected by DLA Piper to submit chapters covering the British Virgin Islands (BVI), Cayman, Guernsey and Jersey, having worked with the firm on previous editions of the handbook.
The Tempest or Much Ado About Nothing?
Asset Risk Consultants provide an up to date Private Client Indices report on the First Quarter of 2016. You can read this report by downloading this here:
Your Client’s UK Property– New UK Tax Rules
The tax rules affecting UK residential property have undergone substantial changes in the last three years.This has continued with the introduction of Capital Gains Tax (CGT) for non-UK residents owning residential property in the UK from 6 April 2015. KPMG have provided an article illustrating just how many changes have been made in a short space of time!
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