STEP LECTURE SERIES 2015/16
STEP Guernsey, brings you the third set of lectures in our 2015/16 Lecture Series. These lectures are thoughtfully designed, helping to maintain your CPD and enhancing your knowledge and understanding of Trust & Estate practice, as well as keeping you updated with industry related hot topics. Members and non-members are welcome to join the presentations delivered by professional, highly experienced individuals.
Lunchtime Lecture No.3, 4th November 2015: “Reviewing Trust Accounts for beginners” by Will Morgan, Offshore Accounting.
Evening Lecture No, 3, 12th November 2015: “Trusts under attack in continental Europe: Lessons for the offshore world in the CRS era” by Filippo Noseda, Withers Worldwide.
Please click here to book your place(s).
STEP Guernsey would like to thank our Sponsor’s Mourant Ozannes for supporting our STEP Guernsey Lecture Series 2015/16.
The Commerce & Employment Department will present a progress update against the key objectives set within Guernsey’s Economic Development Framework on 23 November at St James Concert and Assembly Hall.
The presentation will cover a range of topics including updates on economic sector developments, Locate Guernsey, aviation strategy, the red tape audit and digital work streams, including the Digital Greenhouse. Commerce & Employment will be reflecting on the targets set by the Framework and focusing on the next steps.
There will be refreshments available from 7:30 in the morning with the formal presentation starting at 8:15. Following this there will be an opportunity for the audience to engage and ask questions of Commerce & Employment board members and staff on areas of work or topical issues.
Please click here to book your place.
The Guernsey Finance Industry Update will be held at St James Whittaker Hall on Tuesday 1 December. Registration is from 3.30pm with a start time of 4pm followed by a drinks reception at 5.15pm.
The GF events calendar has been updated to include events for 2016. You can view the current list of events here: GF Events 2015/2016. (add this link to your favourites so you can view the updated lists at any time). Further events will be added in due course.
To register your interest to attend an event as part of the GF team please contact Nikki Zabiela or Declan Maginnis. If you would like to register to attend more than one conference, please prioritise your events as passes will be allocated as fairly as possible and shared out amongst industry. Full terms and conditions of attending an event as part of the GF team can be found here: Helping on the GF stand.
If you require additional information on how to become involved with attending events as part of the GF team, please contact Kat Gillespie who would welcome the opportunity to meet with you to discuss in further detail.
GF have issued their October Newsletter which includes:
- The new date for the GF Industry Update
- A look at the new GF staff
- China Update from Wendy Weng
- New literature
- The latest technical news affecting industry
- Events calendar 2015/2016
Please click on the link to read the newsletter in full: http://www.guernseyfinance.com/gf-update/
GAT has responded to the consultation with regard to The Common Reporting Standard and this can be viewed below:
Notification of Reporting to Reportable Persons
The Association understands the need for notification to reportable persons, but would favour a standing notification to cover the first and future calendar years, particularly, when relating this to our industry, the longevity of a trust or other Fiduciary Relationship is such that ongoing reports will be almost inevitable.
The inclusion of the information in the square brackets clarifies the requirements on RFI’s and in the opinion of the Association should be included in the text.
There is some confusion around the definition and requirements set out by the statement “no less than 30 days in advance of the provision of information under regulation 4”. Do the 30 days count as 30 days before the RFI’s reporting deadline of 30 June or of the Income Tax deadline of 30 September? I.E. would notification need to go out by 31 May or 31 August. If it were 31 May this would significantly reduce the time the RFI has to undertake a full review of their client base.
Optional Approaches to the Common Reporting Standard
The Association are happy with the Options that have been adopted.
Non Reporting Financial Institutions and excluded Accounts
The Association has nothing add at this stage
Moving away from the consultation document to the regulations themselves, generally the Association considers them clear and their application achievable, although we would comment that individual fiduciaries may find them time consuming and costly to adhere to. Keeping the requirements a close as practical to those required for FATCA is considered to be essential as this will enable organisations to understand and implement the requirements of both sets of legislation accurately and appropriately.
One area where there is a significant difference is that currently under the FATCA guidance notes under the IGA businesses can avoid entity classification by adopting the IGA definition and treating anyone/thing managed by a Fiduciary as an FI. This option is not currently available within the CRS agreements and therefore businesses may have cases which have been treated as FI’s for FATCA which will need to be reclassified as NFE’s for CRS. We would ask you to consider whether there is anything that could be done to address this issue and perhaps simplify the issue for RFI’s
Other Specific matters we would note are as follows
Schedule 2 Section E refers to not reporting a place of birth unless the RFI is required to obtain it under domestic law. We would note that under the GFSC handbook all Financial Services Businesses licensed by the Commission have to identify verify their verification subjects and whilst not specific it is implicit and by doing this the verification subject’s passport is obtained which obviously details their place of birth. This is also one of the ore important criteria for FATCA/ UK CDOT and therefore most, if not all financial service businesses would have identified and documented this point.
We assume that in these circumstances there will be a requirement to report Place of Birth.
Schedule 2 Section VIII – definition of “Controlling Persons” – the inclusion of reference to a Protector as a Controlling Person in this section is considered inappropriate.
Schedule 2 Section VIII – Non-Reporting Financial Institution – we welcome the inclusion of the “Trustee Documented Trust” type concept in this paragraph. Would it be possible to confirm whether Sponsored Closely Held Investment Vehicle are also captured in the term “Related Entity”
On a final matter the association has concerns around exchange of information with countries where that information may be used improperly or inappropriately, and we were interested to know whether there would be opportunity for industry to have input to decisions surrounding such submissions in due course?
GIBA have published their September Summary Minutes. Click here to view.
Your Schools Your Choice
The Education Department has launched a major consultation into the future structure of secondary and post-16 education in the Bailiwick, including the future funding of the grant-aided Colleges and the preferred size and number of secondary schools. The deadline for submission is 2nd November 2015. Click here for the link: http://www.education.gg/YSYC
The Department intends to bring a Policy Letter (report) to the States for approval in March 2016. This is in line with the States resolutions of May 2015 which directed the Education Department:
- a) to submit a report to the States in sufficient time to enable a debate by the States at or before the March States Meeting 2016 containing:
- i) recommendations regarding the merit or otherwise of selection at 11 and the optimal size, number and location of secondary schools to deliver a broad and balanced curriculum; and
- ii) at least one option for moving from four to three secondary age schools.
To help it determine its options for the future, the Department wants to ensure it captures the views and opinions of the community. We have not made any decisions yet and all future decisions will be in line with the Department’s Core Values which are set out in our Vision and which have been endorsed by the States.
The P Trust and the R Trust
Mourant Ozannes appeared recently In the matter of the P Trust and the R Trust. The case demonstrates the power of the Royal Court to declare invalid the exercise of powers by fiduciaries.
This case is an excellent example of the distinction between formal and essential validity in the exercise of fiduciary powers – whether they be to appoint trustees, add beneficiaries, make distributions invest or any other type of power. A fiduciary may exercise a power under a trust in a manner which complies squarely with the formalities prescribed in the trust instrument and is therefore formally valid. However, the exercise of power could be impugned by a beneficiary or other person with locus standi if evidence can be brought that the power holder did not act reasonably, in good faith and take into account only relevant matters.
Please click here to view the briefing note.
Data Transfers to the US require urgent consideration following ECJ ruling
As a result of a recent ruling from the European Court of Justice, any data controllers in Guernsey or Jersey who transfer data to the US should urgently review the measures in place to ensure that data remains adequately secure. You can view the full note here.
KPMG highlight key changes proposed to non-dom tax regime
Sponsor’s KPMG have written an article covering the significant proposed reforms to
the taxation of Non-Domiciles. KPMG update – GAT Newsletter Oct 15.
Charting a Smart Course with Asset Risk Consultants
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Please read here for more…. ARC_Charting_a_Smart _Course