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

Our next luncheon will take place on Tuesday 27th June in the Regency Room at the OGH, when Adrian Hale will provide an FIU Update. The presentation will be preceded by the Annual General Meeting, notice of which will be sent to members within the event invitation shortly. Registration is available now via the Events section below or Eventbrite.

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 May newsletter.

Kind regards

Rhona Humphreys

GAT Chair

CONSULTATIONS / FEEDBACK

Consultation on Proposed Financial Crime Return Rules

On 13th February 2023 the Commission issued a Consultation on Proposed Financial Crime Return Rules, which could be responded to via an online survey. Following this consultation, the Commission has made the Financial Crime Returns Rules which make mandatory the filing of the annual financial crime risk return, the annual intermediaries return and the quarterly financial flows return.

The Commission is taking a phased approach to the introduction of a fining penalty for late or inaccurate submission of these returns. Their accuracy and timely submission will be monitored but not subject to an administrative penalty for late or inaccurate filing this year.

Please click the buttons below to view and/or download the feedback paper on the consultation and the Financial Crime Returns Rules which came into operation on 28th April 2023.

Consultation on Amendments to Schedule 3 to the Law regarding Independent Audit, Business Risk Assessments and VASPs

On 28th March 2023 the Commission issued a consultation paper to seek comments on proposed amendments to Paragraphs 3 and 15 of Schedule 3 to the Criminal Justice (Proceeds of Crime) (Bailiwick of Guernsey) Law, 1999 as amended (“Schedule 3 to the Law”) and associated rules and guidance in the Handbook on Countering Financial Crime and Terrorist Financing in relation to an independent audit function and on business risk assessments.

The consultation also included further development of the regulatory framework for virtual assets service providers proposed in a draft ordinance to the Law which will provide for the information requirements for virtual asset transfers, the introduction of a £1,000 threshold on virtual asset transactions over which customer due diligence will be required and extension of the definitions of “funds” and “property” to specifically include virtual assets.

Please click the buttons below to view and/or download the consultation paper and the joint GAT/STEP Technical Committee's response.

Committee for Economic Development begins Guernsey Enterprise Investment Scheme consultation.

The Committee for Economic Development is seeking views from industry and stakeholders on a proposed Guernsey Enterprise Investment Scheme (GEIS).

The scheme aims to encourage angel investment into high growth, early-stage businesses in Guernsey by providing an investment-linked payment to individuals investing into eligible start-ups and developing businesses.

Guernsey based investors would be able to apply for a payment of up to 30% of their investment value. Through the provision of investor incentives, GEIS aims to encourage an estimated £2.2m of investment into Guernsey businesses during the trial, which is proposed to launch this political term.

This consultation will be used to evaluate investor and business interest in GEIS, the method of operation and eligibility requirements. The launch of the GEIS scheme will be considered following analysis of consultation responses and depend on the resolutions from the forthcoming States of Guernsey Government Work Plan prioritisation debate.

For further information about Guernsey Enterprise Investment Scheme and information on how to take part in the consultation please click the button below.

NEWS

Advanced Notice - Changes to the Fiduciary Annual Return

The 2023 Fiduciary Annual Return, which will be available on licensees' timelines on 27 May 2023, includes the following additional question: "Breakdown of business by geography for trusts, foundations, companies and partnerships".

Currently fiduciary licensees are required to identify the country of residence of the settlor of a trust, the founder of a foundation or the beneficial owner of a company but this change means that they will also be required to identify the geographic location of the structures to which they provide services.

The geographic location includes the proper law of a trust or settlement as stated in the trust deed or the jurisdiction of incorporation or registration of a foundation, company, limited partnership or limited liability partnership.

The Commission has made this change to fiduciary annual returns, which are due to be submitted in respect of the period ended 30 June 2023, as Financial Action Task Force Recommendations 24 and 25 require countries to:

• assess the money laundering and terrorist financing risks to which their country is exposed, associated with different types of foreign-created legal persons; and

• assess the money laundering and terrorist financing risks associated with different types of trusts and other similar legal arrangements types of foreign legal arrangements that have sufficient links with their country.

   

The format of the fiduciary annual return submitted by holders of both primary fiduciary licences and personal fiduciary licences has remained unchanged since 2017 when the Commission amended the format of the return so that they could be submitted via the online submissions portal.

Guernsey aligns with Jersey and Isle of Man on approach to OECD's Pillar Two Framework

Guernsey, Jersey and the Isle of Man have made a joint statement on their intentions in respect of the global initiative to set a minimum effective tax rate for the world's largest multinational enterprises. The Islands intend to implement an "Income Inclusion Rule" and a domestic minimum tax to provide for a 15% effective tax rate for large in-scope multinational enterprises, from 2025. Although they will monitor implementation internationally and adapt accordingly to developments which may require adjustments to our own implementation plans.

The Islands have been playing an active part in the major current BEPS workstream in the OECD to address the taxation challenges of the digitalised global economy. They were among the 130 jurisdictions to join the agreed Statement after the OECD Inclusive Framework meeting on 1 July 2021 and among the 137 to join the following Statement on 8 October 2021.

These agreements propose a two-pillar solution to address the tax challenges arising from the digitalisation of the economy, including the option for a robust global minimum rate of tax (known as Pillar Two) to be applied to profits of certain multinational enterprises ("MNEs"). This sets a new global benchmark for the taxation of the world's largest cross-border groups (with a turnover over €750m per annum) ensuring that they will pay a minimum effective rate of 15% corporate tax in every country they operate in. Businesses in Guernsey below the threshold will not be affected by the implementation of Pillar Two.

EVENTS

Members are warmly invited to register for the next GAT Luncheon of 2023, taking place on Tuesday 27th June in the Regency Room of the Old Government House Hotel. The 2023 Annual General Meeting will precede the presentation from Adrian Hale, Head of the Financial Intelligence Unit, who will provide an update for GAT members.

Should you wish to stand for election to the GAT Committee, please contact us for further information. 

GAT Chair, Rhona Humphreys will deliver a industry update and overview of 2022. Booking is available now via Eventbrite by clicking the button below and members will also receive an event invitation directly.

Please note that due to the increased cost of holding functions, the ticket price for luncheons is now £25.00, which will apply to the event on 27th June onwards. The dates of future luncheons can be viewed and/or booked via our interactive calendar at http://www.guernseytrustees.org/calendar

STEP Guernsey Lunchtime Lecture 2022/2023 Series

Topic: Offshore settlements from a UK tax perspective

Speakers: Piers Master, Matthew Radcliffe & Hugh Gunson, Charles Russell Speechlys

Date/Time: Thursday 8th June 2023, Colborne Room, OGH Hotel, 12-1pm

Piers, Matthew and Hugh will discuss the traps and pitfalls of creating and running offshore settlements from a UK tax perspective, and what to do when things go wrong.

STEP Guernsey Annual Conference 2023

STEP Guernsey’s flagship event allows delegates to meet, network and gain important knowledge and technical updates from outstanding speakers in the industry.

For 2023, this will be held on Thursday 15th June with a networking breakfast in the Concourse, followed by the main event in the David Ferguson Hall at Beau Sejour, Amherst, St Peter Port, Guernsey.

For further information, including the agenda and details of speakers and topics please click HERE.

AI & Finance in Guernsey: The Power and the Implications

Learn more about the power and potential of AI at a one-day conference jointly organised by the Guernsey Financial Services Commission and Guernsey Finance.

This event will feature keynote speakers and educational sessions where you can hear more about the potential impact of AI on the finance industry.

Venue: Beau Sejour Leisure Centre, St. Peter Port, Guernsey

Date: Wednesday 28th June 2023

Please register your interest by emailing rsvp@gfsc.gg

Webinar: Choosing Investments - Myth Busting

GAT sponsor, Ruffer Channel Islands, will present a 30-minute CPD webinar on Thursday 8th June at 10am designed to bust common market myths, tackling issues such as 'does buy and hold work', 'would now be a bad time to change strategy', and 'will equities protect against inflation'?

Speakers will be Rachel Holdsworth and Tom Matterson.

Please register by clicking the button below.

A selection of upcoming courses through the GTA

STEP Advanced Certificate in Company Law and Practice

This course, taken as part of the STEP Diploma in International Trust Management or as a standalone qualification, is designed to develop and enhance your understanding of how companies are used as offshore asset-holding vehicles.  It ensures that practitioners understand how to incorporate and manage a private, asset-holding company, including the practices and procedures involved, and are familiar with relevant company law rules that regulate a company and its affairs.

Cost: £1,625
Date: 9 June 2023

Venue: Online
Course Length: Four months
Further details and registration here.

Using LinkedIn to promote and build your “Personal Brand”

This 1.5 hour workshop will introduce attendees to using LinkedIn to promote and raise their professional profile.  Building your personal brand on LinkedIn allows you to connect with other professionals in your industry, expand your network and increase your visibility.  Delegates will leave the course armed with a strategic understanding of LinkedIn, ideas to put into practice and feeling more confident in your social media skills.

Cost: £110
Date: 12 June 2023
Venue: GTA University Centre
Times: 12:00 to 13:30
Further details and registration here.

Compliance CPD Series – Tackling Source of Wealth and Source of Funds

This one hour session will give delegates a broad understanding of the best practice and potential pitfalls they may face in relation to source of wealth and source of funds issues.  The will understand, through the use of case studies and practical examples, that documenting decisions and evidence is the key to following the requirements of the Handbook and complying with their legal obligations.

Cost: £45
Dates: 13 June 2023
Venue: Hybrid (online or face-to-face at the GTA University Centre)

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

How to conduct Enhanced Due Diligence Efficiently: from Open Source to Human Intelligence

This half day course is intended to provide OSINT tools and knowledge above and beyond compliance checks to help you fine tune your due diligence skills, whether you are working in finance or any other profession which requires such skills.  The course will then provide an overview and scenarios of cases which require human source intelligence in addition to open source research.

Cost: £215
Date: 14 June 2023
Venue: GTA University Centre
Times: 09:00 – 12:30
Further details and registration here.

FATCA and CRS Visits – Preparation and Practical Tips

This short course will take delegates through what they can expect of a visit from the Automatic Exchange of Information (AEOI) team of the Guernsey Revenue Service.  Under the bilateral FATCA agreement and the multilateral OECD agreement the Guernsey Revenue Service is the “competent authority” (or regulator) for both FATCA and CRS.

The Revenue Service, specifically the AEOI team, have a responsibility to perform regulatory supervision of reporting entities. This is being done via a combination of routes including data quality analysis, thematic and regulatory oversight visits. This course will help delegates and their business prepare for the visit.

Cost: £99
Date: 15 June 2023
Venue: GTA University Centre
Times: 09:30 to 11:00

Further details and registration here.

Delivering Effective Appraisals

This half day workshop is designed to upskill potential and existing appraisers, providing you with an overview of the skills and approaches necessary to leverage the best possible outcomes regardless of the appraisal process you have to work with.

Cost: £215
Date: 16 June 2023
Venue: GTA University Centre
Times: 09:30 to 13:00

Further details and registration here.

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

Guernsey Private Wealth Forum 2023 - Thursday 02 November 2023

Registration is now open for the Guernsey Trusts and Private Wealth Forum on Thursday 6 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

Read our latest Green Line ‘A Few Bad Apples'

Markets have breathed a sigh of relief as turmoil in the US banking sector appears to have been contained. But a string of bank failures may merely be a symptom of wider, more troubling dynamics at hand in financial markets. Economist Jamie Dannhauser discusses the fragility of the current investment landscape and explains why our conviction of an impending liquidation event in markets is growing stronger.

Click the button below to read the review. Please contact Rachel Holdsworth if you have any questions.

We believe that strong relationships are the key to good business. That’s why our Islands Commercial team are by your side to support you and your business

every step of the way.

We’re here for your business whenever you need us.

Contact us or visit our website for more information.

Did you know we have a LinkedIn page?