Our monthly roundup of news, events and sponsor reading material.

Members' Area

The Members' Area will develop over time, and will be populated with consultation responses and papers / advice issued by GAT and / or the Technical Committee.

Message from the Chair

With the ongoing and ever-changing situation of Russian sanctions still at the forefront of fiduciaries' minds, the GAT executive are in regular discussions with the GFSC and will continue to keep members informed.  An email was sent to members on Friday 22nd April with regard to the recent EU Amendment to regulation. Please find the email again below for members' information.

Our next GAT luncheon is taking place on Thursday 26th May, presented by Josephine Bush and Stephanie Glover of Guernsey Finance.  The luncheon will also feature a short talk from GROW Director Mike Tidd and General Manager Jess Aughton, informing members of GROW's exciting future plans and the opportunities for trustees.

Booking is available now on Eventbrite or via the Events section below. As always, I would be pleased to hear from members to understand any frustrations or concerns please contact me.

Enjoy your April newsletter.

Kind regards

Rhona Humphreys

GAT Chair

EU Amendment to Regulation - 8th April 2022

Dear Members,

I am sure that many of you are aware of the EU amending resolution which was passed by the EU on Friday 8th April, in view of Russia’s actions destabilising the situation in Ukraine, further restricting the provision of services including Financial Services to Russian Citizens 

Inevitably there is question around the impact this has on our industry as the UK and Guernsey are yet to introduce the same sanction, however there is a school of thought that even if the regulation is not passed by the UK and Guernsey, EU citizens will be restricted from working on Russian Trust and Company business.

GAT are working to gain further clarity on this matter and will keep you updated as we are able to.

We have however, been in liaison with the GFSC with regard to Russian business generally, and the anecdotal evidence I have received regarding the transfer of Trusts and Companies currently in the EU to Guernsey to allow them to remain open after the EU Deadline for providing services of 10 May 2022.  I would remind you of my previous email concerning sanctioned business and futureproofing and would like to pass on the following comment received from the GFSC:

“The Commission, taking into account its statutory duties, would have no appetite for Russian trust related business to move to the island which was connected in any way with sanctioned individuals. For example, a trust set up by a sanctioned individual which had his mother, daughter, son, wife etc as beneficiaries would absolutely not be welcome to move to Guernsey.

Other Russian wealth which can be clearly shown not to relate to sanctioned (EU/US/UK) individuals or Russian war industries etc could be considered on its merits by fiduciaries subject to all sanction requirements and handbook requirements on Source of Funds/Wealth, beneficial ownership etc. being complied with in full. We would caution against fiduciaries using Appendix C for these kind of relationships: we would anticipate that in these circumstances the fiduciary undertakes its own very thorough due diligence on beneficial ownership and source of wealth/funds and does not rely on the introducer’s records."

GAT and the GFSC would remind you that we are all collectively responsible for maintaining the Bailiwick’s good name at a point at which any contact with new Russian money could be seen by our detractors in an unfortunate light even if strictly legal.

For your information, the full amended EU sanction can be read under Article 5m via clicking HERE.

Should you have any queries please contact me.

Warm regards, 

Rhona Humphreys
GAT Chair

NEWS

Sanctions Notice - Russia - new restrictions

Please be advised that the Russia (Sanctions) (EU Exit) Regulations 2019 (the UK regulations) have been amended by the Russia (Sanctions) (EU Exit) (Amendment) (No. 8) Regulations 2019 (the amending regulations).

The UK regulations are given effect within the Bailiwick under the Sanctions (Implementation of UK Regimes) (Bailiwick of Guernsey) (Brexit) Regulations, 2020 that have been made under the Sanctions (Bailiwick of Guernsey) Law, 2018 (the Sanctions Law). The amendments in the amending regulations are automatically effective in the Bailiwick.

The amending regulations impose new restrictions in relation to trade in:

• oil refining goods and technology
• quantum computing and advanced materials goods and technology
• luxury goods
• iron and steel goods.

The amending regulations are available in full HERE.

MEASURES WHICH SHOULD BE TAKEN

All businesses must familiarise themselves with the new restrictions and check whether they have any business relationships that may be relevant.

Businesses must report any findings to the Policy & Resources Committee immediately. They must also ensure that they have taken all other steps that may be required in order to comply with the reporting obligations at section 14 of the Sanctions Law.

Businesses must also refrain from carrying out any transaction that is in prohibited by the new restrictions other than in accordance with a licence issued by the Committee for Home Affairs.

The information referred to above is required by the Policy & Resources Committee in the exercise of its powers under section 15 of the Sanctions Law.

Any information or queries should be sent to sanctions@gov.gg with the subject line “Russia Sanctions”.

New Charities Ordinance and Regulations take effect

The new Charities Ordinance, which was approved by the States Assembly in June 2021, comes into effect today (Fri 29 April) and Guernsey and Alderney charities and non-profit organisations are being advised that the Ordinance and its requirements will begin to be phased in.

The Guernsey Registry will continue to act as the Office of the Registrar of Charities and other Non Profit Organisations, and will maintain the Register.

Any charity or NPO that works locally and not internationally, and that has assets of less than £100,000 and/or turnover of less than £20,000 is NOT required to register or remain on the register, however they can if they wish to in order to access certain benefits associated with being a registered charity. 

Helen Gains, Registrar, said:

"There has been extensive dialogue with charities and their sector representatives about the implementation of the Ordinance, and the requirements for them, since it was agreed by the States last year. We really want to thank everyone who contributed to the consultation for their input.  It's helped us get to this stage, where the Ordinance takes effect, and we've planned out a phased process for introducing the requirements for registered charities as a result.  The new Ordinance means some new financial probity and transparency measures and mitigations against the risk of financial crime which are important for the reputation of registered charities and for the Bailiwick as a jurisdiction."

RPIX increases to 5.9%

On Friday 22nd April, Guernsey published its retail price inflation measures, which show an increase in the annual change in RPIX to 5.9%.

While this is the highest annual RPIX percentage change since 2008, this remains substantially lower than the UK, where the equivalent measure has reached 9.1%.

Price inflation in Guernsey has been driven upwards primarily by costs of housing, domestic heating fuels, holidays outside the Channel Islands and motoring increasing significantly over the past year. There have been increases across all of the groups used in the inflation calculations, creating general upward pressure.

In particular, prices are being driven up by problems with global supply chains and disruption to energy markets as a result of the war in Ukraine.  However, the impact is less here compared to the UK because of Guernsey's connection to the French electricity grid which has a high proportion of nuclear power, and our warmer climate and smaller geographic size.

The steps taken by the Bank of England to curb UK inflation over the coming months should also have an impact in the Bailiwick.  UK inflation is expected to start falling later in the year, but it may take some time to bring figures back down to their target levels, and Guernsey also can expect to see above average inflation for some time.  The next publication of inflation measures will be released on 22nd July 2022.

Update on international corporate tax framework development

The OECD has been working on a global solution to reform the international corporate tax framework, which will affect how large multinational enterprises are taxed around the world.

That framework is based on two broad work streams: Pillar 1 is essentially a proposal for partial re-allocation of taxing rights and Pillar 2 proposes that large multinational enterprises will pay a minimum effective rate of tax of 15% on their profits. These proposals seek to address issues linked to the increasing globalisation and digitalisation of the economy.

An overwhelming majority of jurisdictions (including Guernsey, Jersey and the Isle of Man) reached agreement on the proposals and the detailed implementation plan that was announced by the OECD in October 2021. Since then, technical discussions have continued to develop model rules, commentary and the multilateral instruments/conventions that will be needed to implement them. This work is still ongoing, with the proposals continuing to develop.

It is expected that Guernsey will implement the Minimum Standards that are contained within the proposals - the Pillar 1 Minimum Standard and the Pillar 2 Subject to Tax Rule, which applies to double tax treaties.

The other element of Pillar 2 (GloBE) has been designed so that jurisdictions are not obliged to adopt the GloBE rules, but must accept the application of them by other jurisdictions. Government continues to engage with stakeholders on the most appropriate implementation option for Guernsey and for the multinational groups that operate here.

EVENTS

GAT Members' Luncheon - Thursday 26th May 2022

The next GAT Luncheon is taking place on Thursday 26th May 2022 in the conservatory at Moores Hotel.

Following the GAT industry update, Josephine Bush, Strategic Advisor for Green and Sustainable Finance at Guernsey Finance, will deliver a presentation to members. Josephine is particularly focused on developing commercially effective ESG and sustainable strategies that robustly manage risk as well as seize opportunity. 

The luncheon will also feature a short talk from GROW Director Mike Tidd and General Manager Jess Aughton, informing members of GROW's exciting future plans and the opportunities for trustees.

The next STEP Lunchtime Lecture is taking place on Friday 6th May 2022 at the OGH. Speakers are Gillian Everall and Matthew Edwards, Everfair Tax.

Gillian and Matthew will cover the tax implications of trust arrangements for international families including US individuals – what to be aware of and what to look out for when it comes to investments and distributions.

STEP Guernsey Branch Annual Conference - Thursday 16th June 

STEP Guernsey’s flagship event allows delegates to meet, network and gain important knowledge and technical updates from outstanding speakers in the industry. Delegates will gain valuable CPD points whilst learning from industry experts about a broad range of relevant and current topics.

For 2022, this will be held on Thursday 16th June with a networking breakfast in the Concourse, followed by the main event in the David Ferguson Hall at Beau Sejour Leisure Centre.

For the event agenda, further details and booking please click the button below.

May Courses by the GTA

Time Management for Busy Professionals
 Do you want more time?  This practical course is deigned to provide busy professionals with the opportunity to take a focused look at their current operating style and approach to their work.  The aim of this half day course is to enable delegates to identify areas where they may be able to work more effectively and efficiently and in doing so create more time.

Cost: £205
Date: 17 May 2022
Venue: GTA University Centre
Time: 09:00 to 13:00
Further details and registration here.

Three Brain Leadership – How to cope with courage, enhance connection and develop wisdom
This full day course will help business leaders develop the skills needed to successfully negotiate a rapidly changing business landscape using neuroscience to give new insight and a fresh understanding.  Three Brain Training will help delegates integrate their understanding of the three main nervous centres (the gut, the heart and the head) and allow them to develop key skills in building trust, enhancing connection and developing grit, focus and motivation.

Cost: £325
Date: 19 May 2022
Venue: GTA University Centre
Times: 09:00 to 17:00
Further details and registration here.

STEP Diploma in International Trust Management: Diploma 3 – Advanced Certificate in Trustees’ Duties: Investment and Management of the Trust Fund
 
This course forms part of the STEP Diploma in International Trust Management which is recognised worldwide as the benchmark qualification for those working in the international trusts industry.  This course is designed for practitioners involved in international trust administration and management to develop their understanding of a trustee’s duties when investing and managing the trust fund.  It covers in depth insight into the capital markets, money markets, sophisticated investment funds, private equity, structured products and derivatives to enable delegates to implement investment advice, analyse and monitor trust investments and report to the beneficiaries.

Cost: £1,625
Enrol by: 20 May 2022
Delivery: Online via Zoom
Course Length: Four months
Further details and registration here.

The role of the Administrator
The role of the office administrator is vital in any organisation and can vary from organisation to organisation, however, the fundamental skills that are required to be an effective administrator are largely the same.  This two day course will give delegates a good basis of skills, tools and techniques to further their experience and career in office administration.

Cost: £450
Date: 23 & 24 May 2022
Venue: GTA University Centre
Times: 09:00 to 16:00 each day
Further details and registration here.

STEP Certificate in International Trust Management
The STEP Certificate in International Trust Management offers delegates a detailed insight into the creation and administration of trusts in an international context and increases delegates knowledge of the practical and academic issues arising in the industry.

Cost: £1,575
Enrol by: 27 May 2022
Delivery: Online via Zoom
Course Length: Four months
Further details and registration here.

Please contact Michelle Morley GTA Head of Programmes for further details on any of the above courses.

Guernsey Funds Forum - Thursday 12th May 

Guernsey has a long history of being the conduit for global capital flow with a proven track record when it comes to providing services to investment vehicles.

At this year’s event, in London on 12th May, Guernsey Finance will explore a diverse range of topics that are relevant to today’s climate. Two expert panels will cover topics including sustainability and technology, with the Forum welcoming renowned broadcaster, economist and author Dharshini David as keynote speaker.

For further details please follow this link: https://www.weareguernsey.com/finance-events/2022/guernsey-funds-forum/

Please register your attendance here.

For the full calendar of Guernsey Finance events please click the button below.

SPONSOR ARTICLES

Lloyds Bank International: 2022 Sponsors of GAT

Amid a constantly changing landscape, Lloyds Bank International are delighted to partner with the Guernsey Association of Trusts and join the conversation to support the sector. On top of our bespoke local banking services, which encompasses the full client journey, from onboarding to risk and compliance, we have made enhancements to our teams and services, designed to meet the needs of the trust and fiduciary industry.

The introduction of our new head of the fiduciary business, Heidi Peterson, will grow our specialist capability alongside our experienced, local relationship managers and in-house risk specialists. Heidi has a strong background in this sector, across several jurisdictions, and has deep understanding of Guernsey clients as well as the industry challenges.

Additionally, we’re continuously improving our cash management and payments platform, Lloyds Bank Gem®. It is an API-enabled system bringing cloud computing together with data-led solutions, with the aim to give you the control and flexibility you and your clients need to manage cash into the future. 

To hear more about us and what we could offer please contact Julie Ronaldson, Heidi Peterson or Jamie Le Poidevin.

Lloyds Bank Gem® is a registered trademark of Lloyds Bank plc.

Read the Green Line: Bonds behaving badly

Traditional balanced portfolios rely on equities and bonds fulfilling their roles – equities for good times, bonds to cushion the bad. But after a torrid three months for markets, investors are being forced to tear up the rulebook. 

Read the full article by clicking the button below and please contact Rachel Holdsworth with any questions.

Carey Olsen is Chambers' offshore law firm of the year

Carey Olsen has been named Offshore Law Firm of the Year at the prestigious Chambers Europe Awards 2022.

The awards gala, held at the end of last week at the Intercontinental Hotel in Madrid, Spain, recognised international law firms' pre-eminence and achievements over the past 12 months.

Winners were selected across 30 categories following in-depth independent research and analysis, conducted by an experienced team of more than 200 researchers, whose rigorous selection process included interviewing referees and clients from every shortlisted firm.

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