Welcome to our newsletter
Members are warmly invited to our next GAT Luncheon which will take place on Wednesday 9th January 2019 in the Conservatory at Moores Hotel.
We are delighted to welcome Rupert Morris who will cover the salient points of the AML/CFT Handbook.
Our luncheon will also feature an industry update from Chairman Paul Hodgson.
Click below to book.
This month GAT has seen its Technical Committee working hard on a number of consultations, industry updates and digesting recently released guidance pieces. Some of these agenda items require feedback from industry and therefore member feedback is requested where appropriate in the below articles. Please do participate where you can.
You can email us here - firstname.lastname@example.org. Please add us to your address book to ensure safe receipt of our emails.
HMRC's consultation: The Taxation of Trusts
You may already be aware that HMRC have issued a consultation paper on the taxation of trusts. This document and associated paperwork can be found here.
"We are inviting views on the principles that government believes should underpin the taxation of trusts: transparency, fairness and simplicity."
The Technical Committee feel that there are a number of inaccuracies and misunderstandings outlined in the document and are preparing an industry response. If you would like the Technical Committee to consider any points that concern you pertaining to the consultation, please advise us by email no later than Wednesday 12th December. Please email us.
There is no doubt that members will have seen, after much anticipation, the revised Handbook on Countering Financial Crime and Terrorist Financing, in final draft form, which has been released by the GFSC. A number of changes have been made following the consultation, to which the combined GAT/STEP Technical Committee made a substantial response to in 2017. The revised draft legislation is due to take effect on 31 March 2019. The Commission will be formally making the rules in the Handbook during the first quarter of 2019 to allow time to address any technical issues within the rules and guidance which could hinder or prevent compliance with the revised regulatory framework.
The Technical Committee would like to invite members to email us if you have found what you believe to be any unintended consequences or fatal flaws in the new document that you would like to highlight.
You can view the Commission's full statement and a marked up copy of the Handbook here.
Code of Market Conduct
Earlier this month the Commission announced the publication of the Code of Market Conduct (“the Code”) following the closing of the consultation period on 12 July 2018.
The aim of the Code is to provide guidance on whether or not behaviour amounts to market abuse, in the opinion of the Commission.
Success celebrated for the first ever Guernsey Private Wealth Forum
Guernsey was highlighted as a safe haven offering stability and security in an uncertain world, at the island’s first Private Wealth Forum event held in London.
Guernsey Finance would like to convey the below message to those members who attended.
"On behalf of Guernsey Finance we would like to thank you for your support of the Guernsey Private Wealth Forum which took place in London on 8 November. As a key partner, we would like to share with you our post event information pack which includes key statistics about the event itself, as well as the marketing campaigns around it. If you have any feedback you would like to share with us, please visit our event website here. It is so important for us to have feedback to ensure that we are hosting the best possible event and to obtain crucial information which we need to continue to put on successful events.”
You can read about the event's key panel session in this article: Guernsey a safe haven in a return to 19th century power politics
Guernsey is on the map for family office moves
Guernsey is increasingly being considered as a base for family office structures, an expert in the sector told the first-ever Guernsey Private Wealth Forum in London.
David Bowen, who leads Deloitte’s Private Office Consulting practice and leads on a wide range of family office work, said that the current climate was challenging for high-net-worth families, both in issues they were facing, and issues confronting jurisdictions operating in the sector.
“We are starting to see a shutdown of jurisdictions which people would have typically looked to use, and they are relocating trusts or shoring up substance requirements where trusts are involved,” Mr Bowen said.
Please find below a link to the summary minutes for October's meeting of the GIBA Council.
STEP Lecture Series 2018/19
Breakfast Lecture No. 1
5th December - 8.15am
Dorey Room, St James
Momentous Decisions: how when and why?
Alison Ozanne, Walkers LLP
Recent developments in the exercise of the Royal Court of its supervisory role in administrative Trust proceedings.
How does a Trustee judge when to seek the guidance of the Court and how does it decide if proceedings will be contentious or non-contentious in nature? What are the relevant costs implications both in terms of the Trustee's fees and also its costs and legal expenses? When should a Trustee seek a blessing of its decision and when should it in fact surrender its discretion altogether?
For a full biography and more details please visit stepguernsey.org
Click on the image below to book your place. In the case that the event is fully booked STEP Guernsey will operate a waiting list.
Lunchtime Lecture No. 6
Booking now open for STEP's 6th lunchtime lecture, taking place in the Dorey Room at St James on Monday 17th December at 12pm. Deloitte will be examining the Economic Substance requirements. Please book early to avoid disappointment.
Further details to follow, however if you wish to book now you can do so via the button below.
We would like to give thanks to our Sponsors for their support.
- Asset Risk Consultants
- Alternative Solutions Limited
- Carey Olsen
- Walkers (Guernsey) LLP
GFSC: fit and proper guidance
The Guernsey Financial Services Commission (GFSC) has this month released updated guidance on the requirement for those holding senior positions within institutions in the banking, fiduciary, insurance and investment sectors, to be “fit and proper” persons. While the requirement to be “fit and proper” is not a new requirement, the guidance seeks to provide clarity to individuals (and the entities that employ them) regarding the matters which the GFSC will consider when determining an individual’s fitness and propriety.
Carey Olsen consider this matter further in their recent publication.
Here we go again: Representation of A in the matter of the G Trust
What’s this – surely not another mistake/Hastings-Bass briefing from those people at Walkers? Well, yes, but in our defence, there have been several judgments from the Royal Court on this topic in the last few months, and if anything, it underlines our previous observation that this is a helpful regime for trustees, settlors and beneficiaries. Also, this particular case involves an error by a settlor in establishing a new trust, rather than by a trustee in relation to its administration of an existing one. The relevant statutory provisions are different, even if relief will often be available in both cases. The purpose of this note, therefore, is to briefly illustrate how settlors who find themselves in difficulty can seek to unravel the creation of their trusts.