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

We now break for the summer with our next luncheon scheduled to take place on Wednesday 13th September in the Regency Room at the OGH, when our sponsors Lloyds will present. Registration will be available in due course and an invitation will be sent to all members.

The dates of future luncheons can be viewed and/or booked (when live) via our interactive calendar at http://www.guernseytrustees.org/calendar

As always, I would be pleased to hear from members to understand any general frustrations or concerns you may have. Please do contact me.

With warmest wishes from GAT, enjoy your June newsletter.

Kind regards

Rhona Humphreys

GAT Chair

ASP and AMCs/Structured Products/Category 2 POI Investments

It has come to our attention that if a Fiduciary is running (by way of business), an SPV which legally owns Virtual Assets you will need to give consideration to the VASP’s provisions in the Lending Credit and Finance Law – specifically to consider whether or not the SPV which buys/sells/holds virtual assets conducts one of the activities listed under 17.1 of the Law and would therefore be a VASP requiring a licence under the law.

We are aware that the GFSC are shortly to consult with regard to the level of fees that are appropriate in these circumstances – and we will circulate the consultation to you when it is available.

CONSULTATIONS / FEEDBACK

Consultation on AML/CFT Obligations upon VASPS and Additional Obligations upon Licensed Trustees and Partners

This consultation, issues on 9th June, seeks comments on the proposed rules and guidance for virtual asset service providers (“VASPs”) on information requirements for virtual asset transfers and general guidance for VASPs and specified businesses with a connection to, or involvement with, virtual assets, on how to meet the requirements of Schedule 3 to the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law 1999 (“the POC Law”) and rules in the Handbook on Countering Financial Crime and Terrorist Financing (“the Handbook”). These rules and guidance are in a new chapter of the Handbook.

It also seeks feedback on the proposed additional rules and guidance for trustees of trusts and partners (excluding limited partners) of partnerships and limited partnerships without legal personality to hold information on the identity of other regulated agents and service providers to a trust or partnership, and disclose their status as trustee or partner. These rules will apply to licensed trustees and licensed partners.

NEWS

Quad Island Forum meets in London to discuss Economic Crime and International Tax Crimes

During the week commmencing 19th June, the Financial Intelligence Units (FIUs) from Gibraltar, Guernsey, Isle of Man and Jersey under the Quad Island Forum met in Gibraltar House, London, as part of their ongoing commitment to further develop the Quad Island Forum and extend to other authorities with responsibilities for financial crime.

The three-day meetings included discussions between the Guernsey FIU, the Economic Crime and Confiscation Unit from Jersey, and the Isle of Man Proactive International Money Laundering Investigation Team, and focused on exchanging best practices in preparation for the upcoming MONEYAL mutual evaluation assessments.

An additional initiative has been undertaken, encompassing a distinct subgroup that integrates the tax authorities from the four jurisdictions. The aim is to enhance collaboration between tax authorities and FIUs to combat serious tax-related crimes and sophisticated tax fraud schemes that yield substantial illicit gains. During the meeting, participants deliberated on strategic objectives, fostering effective cooperation, exploring training opportunities, sharing best practices for accessing tax data, addressing legal challenges, resources and information technology.

The development of this sub-group demonstrates each jurisdictions' commitment to ensure they have the broadest range of financial intelligence and mechanisms to target criminals and the proceeds of crime.

Update to LCF Law - Notice of Disapplication

Following feedback from industry, the Commission has amended the Notice of Disapplication of Licensing Requirement, issued under section 40 of the Lending, Credit and Finance Law, which sets out a number of class exemptions from licensing.

Three of the changes were made to clarify the disapplications in respect of lending secured against property which is outside the Bailiwick, lending by companies within a trust structure and the arrangements for appointed motor traders while the final change removed the cash limit from the Lombard lending disapplication.

Exemptions from licensing – personal directorships

On 5th June 2023, the Regulation of Fiduciaries etc (Bailiwick of Guernsey) (Amendment) Regulations, 2023 were made by the Policy & Resources Committee. These Regulations, which are to be laid before the States meeting on 5th July and which come into operation on 8th July, expand the available licensing exemptions for certain categories of personal directorship activity.

The Regulations take forward the original proposals made in the Commission’s December 2022 consultation paper and, based on consultation responses received, provide for further categories of exemption. The Committee has also made Regulations for the implementation of the new Director Registration Regime which, subject to receipt of approval at the States meeting on 5th July, would also come into operation on 8th July.

The two sets of regulations are connected insofar as the introduction of new, additional categories of licensing exemption will reduce the number of individual directors using the 'up to six directorships' exemption who would be required to register. In line with its normal practice, the Commission will publish a consultation paper feedback statement and at the same time issue supporting guidance for directors to help them understand their respective positions and obligations regarding licensing, licensing exemption and registration.

It is proposed, in the relevant Policy & Resources Policy Letter, that when the Regulations are enacted there will be a transitional period for individual directors to complete the new registration requirements. For the avoidance of doubt, the proposed Regulations do not require individuals benefitting from the six directorship exemption to be licensed under the Fiduciaries Law.

The Commission can be contacted with any comments or questions in advance of 8th July using the following email address: ifpd@gfsc.gg.

Senior Decision Maker appointments

The Commission maintains a panel of ‘Senior Decision Makers’ who determine the outcome of the Commission’s major enforcement cases. A Senior Decision Maker, sitting alone, hears those cases involving findings of serious regulatory shortcomings against a licensee and/or individual directors and where those findings are contested.

As part of the process, Senior Decision Makers are also required to determine the penalties that are to be imposed which will include the level of any financial penalty to be imposed, any period of prohibition from practising in the industry and the contents of any public statement that is issued by the Commission.

The Commission has recently made three new appointments to its panel as follows:

• Mr Nicholas Davidson KC

• Ms Saima Hanif KC

• Mr Alex Potts KC

   

Chairman of the Commission, Julian Winser said: “These latest appointments were made following an extensive and open recruitment process. We were delighted with the considerable interest we received and with the very high calibre of all of the candidates who applied to be included on the panel.”

Full details of the decision-making process can be found in this Explanatory Note.

The Commission’s panel of Senior Decision Makers is Chaired by Ms Leigh-Ann Mulcahy KC and currently comprises:

• Mr Glen Davis KC

• Mr Russell Finch OBE

• Ms Catherine Gibaud KC

• Dr Kirsty Hood KC

• Mr Ben Hubble KC

• Mr Richard Jones KC

• Mr Terence Mowschenson KC

• Miss Alison Potter

2022 Annual Report

On 1st June the Commission has published its 2022 annual report and financial statements.

In the annual report, the Commission discusses: the increased risks faced by the financial services sector as a result of high inflation and rising interest rates; its continued development of digital technology to enhance performance; its work with Guernsey Finance and others to develop the Bailiwick’s proposition in the fast growing sustainable finance sector and its support for the Bailiwick’s preparations for the impending MONEYVAL inspection.

Specifically, in 2022 the Commission:

• Continued to develop its use of Augmented Intelligence with the creation of an Early Warning System which assists supervisors in recognising smaller entities that are displaying certain patterns of possible concern. It also made progress with a data project to review its overall data strategy and start creating a design framework for a new data platform that will transform its IT infrastructure. These are both large scale digital projects designed to increase automation and efficiency.

• Launched its Natural Capital Fund framework designed as a regulatory designation for funds to help channel investment into biodiversity and natural capital projects that make a positive contribution and/or significantly reduce harm to the natural world. It also published anti-greenwashing guidance for the investment sector to ensure that adequate disclosures are made to investors in respect of any environmental sustainability claims made.

• Implemented the recommendations from an audit it underwent against the Financial Action Task Force’s criteria whilst working with the States of Guernsey to deliver a number of significant new pieces of MONEYVAL-related legislation, including the Lending, Credit and Finance Law. This brings crypto assets and personal loans inside the regulatory perimeter for the first time, hopefully advancing good AMLCFT practises and consumer protection.

A message from We Are Guernsey to GAT Members

Z/Yen are a City of London think-tank which produces a Global Financial Centres Index. You may have seen our story in March as Guernsey had climbed 12 places. We at Guernsey Finance certainly leveraged it as this survey provides us a very helpful and tangible benchmark to talk to when promoting and connecting across every sector. As such, we would like to continue to support the survey and our position within it.

Whilst it cannot be completed by Guernsey based professionals and firms, we would be very grateful for your support and would ask that you consider sharing the questionnaire link below with clients and contacts who like working with Guernsey. All help would be hugely appreciated.

https://globalfinancialcentres.net/survey/

EVENTS

STEP Guernsey Lunchtime Lecture 2022/2023 Series

Topic: The Lending, Credit and Finance Law – an Update

Speakers: Tom Carey and Matt Brehaut, Carey Olsen

Date/Time: Monday 3rd July,Colborne Room at the OGH Hotel, 12-1pm

At the final lecture of the current STEP Lunchtime Lecture series, Matt and Tom will provide a recap of the Lending, Credit and Finance Law and will share their experience of how the implementation has been received, up to and following 1st July when it comes into full effect.

A selection of upcoming courses through the GTA

Compliance CPD Series 2023 – Tax: FATCA, CRS, Economic Substance and more

The next session in this popular series will look at changes to key Guernsey tax regimes affecting the financial services sector.  With forthcoming changes to the Common Reporting Standard, enhancements to the Economic Substance Regime and more, this is a constantly moving area.

Cost: £45
Date: 04 July 2023

Venue: Hybrid (online or face-to-face at the GTA University Centre)

Times: 12:30 to 13:30
Further details and registration here.

Launch – MSc Corporate Governance/Graduate CG Fast Track

Please join us for this free lunchtime launch to find out more about the MSc Corporate Governance/Graduate CG Fast Track delivered by Bournemouth University and which starts in September 2023.  The MSc Corporate Governance is a popular masters programme locally, providing students with a highly specialised set of skills and developing their ability to appreciate and influence the factors governing corporate affairs.  It is essentially a mixture of finance, law and governance focusing on the role of corporate administration within private, public and not-for-profit organisations.  The Fast Track is open to those holding full CGI Professional, CCAB, ACCA, ACA, CIMA and equivalent.

Cost: FREE
Date: 06 July 2023
Venue: GTA University Centre
Times: 13:00 to 14:00
Further details and registration here.

So you want to be a NED?

This half day course is open to any individual aspiring to hold Non-Executive Director positions in the future or those new to the role in Guernsey.  This course will address the reality of being a NED in Guernsey and what the true expectations are from both sides of the relationship.  The course will also include an introduction to roles and responsibilities, fit and properness, duties and risks. 

Cost: FREE
Dates: 07 July 2023
Venue: GTA University Centre

Times: 09:30 to 13:00
Further details and registration here.

STEP Certificate in Anti-Money Laundering

This course provides delegates with all of the essential knowledge they need to establish a successful career in the field of anti-money laundering.  The global nature of the world’s financial systems provides criminals with virtually unlimited opportunities to launder the proceeds of their crimes. It is the responsibility of individuals and professionals working within the wealth administration industry to try to prevent and report knowledge and suspicion of money laundering. If funds from criminal activity can be processed through a particular institution, the integrity, reputation, legality and financial viability of that firm and the sector within which it works can be seriously impacted.

This course is designed for those who work in the international private wealth management field and those who are looking to develop their understanding of anti-money laundering. The course will particularly benefit those whose roles involve compliance, regulatory matters, international audit and money laundering reporting.

Cost: £1,100
Start Date: 17 July 2023
Venue: online
Course Length: 4 months
Further details and registration here.

STEP Certificate in International Trust Management

The STEP Certificate in International Trust Management covers the most up-to-date developments in the industry, introducing you to the fundamentals of international trusts, trust operations and requirements in a global and local environment.

Cost: £1,575
Date: 21 July 2023
Venue: online

Course Length: 6 months

Further details and registration here.

Please contact camilla.hobbs@gta.gg, GTA Programmes Manager, for further details on any of the above courses.

Guernsey Trusts and Private Wealth Forum - Thursday 6th July

Registration remains open for the Guernsey Trusts and Private Wealth Forum on Thursday 6th July. This year's programme will feature topical panel discussions delivered by experts in their fields, on issues including:

• Tax and planning considerations around mobile families

• Preparing for MONEYVAL – Practical advice for trustees

• Next generation structuring – Trends and challenges

• The correction of mistakes – What trustees need to know

• When investments go wrong and trustees are in the line of fire

• A case round up for the year

For further information and to register to attend, please click HERE.

Guernsey Private Wealth Forum 2023 - Thursday 02 November 2023

Save the date for the return of the annual Guernsey Private Wealth Forum in London, where experts will discuss the latest trends in the sector and share the strengths of Guernsey as a jurisdiction of choice for private wealth.

Providing specialist wealth management services for sophisticated clients and their families is a long-established tradition for Guernsey. With its robust constitutional, legislative and regulatory framework, the island provides a safe and secure environment for private wealth.

More information on speakers and content to follow, should you have any questions, please contact Emily Wild.

SPONSOR ARTICLES

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