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.

Please note:  GAT responses to the following consultation papers have been added to the Members' Area for your information:

• Statutory Instruments proposed to be re-issued
• Proposed replacement of the current Fiduciary Rules, 2020 by the new Fiduciary Rules, 2021
• Ancillary Vehicles
• P&R Charities and NPOs consultation

Message from the Chair

Our next GAT luncheon is on Wednesday 12th January 2022, with Tony Mancini from KPMG presenting "OECD work on the digital economy and global minimum taxes". We will be closely monitoring the States of Guernsey advice and will follow all covid guidelines for scheduled events.  Members will be informed of changes or cancellations in advance and tickets are refundable.

As always, I would be pleased to hear from members to understand any frustrations or concerns - contact me.

Enjoy your November newsletter.

Kind regards

Rhona Humphreys

GAT Chair

Annual Validation filing deadline

Monday 28th February 2022

Members are reminded that Guernsey Company Annual Validations will need to be submitted to the Guernsey Registry by this date in order to avoid penalties, together with payment of the appropriate fee.

NEWS

Employment & Social Security engages with local pension providers following withdrawal of preferred supplier

The Committee for Employment & Social Security will go out to tender in the next few weeks for a provider of a secondary pensions scheme following the withdrawal of Smart Pension Ltd as the preferred provider.

Initial discussions have taken place with local pension providers, from which the Committee has determined that there is significant interest in providing the scheme.

In February 2020, the States agreed that Smart Pension should be appointed to deliver administrative and custodianship services. Following changes to the commercial landscape in which the company operates since their selection as the preferred provider in 2019, it is no longer possible for Smart to proceed on the basis of the terms set out in their tender and approved by the States.

The Committee is still targeting an implementation date of January 2023 but recognises that this may be challenging.

The first licence has been issued to enable the cultivation of Cannabis-Based Products Medicinal (CBPM) in Guernsey.

The licence, issued by the Bailiwick of Guernsey Cannabis Agency (BGCA) established by the Committee for Health & Social Care (gov.gg/cannabislicensing), is the first of its kind in the Bailiwick and an exciting development of the island's emerging cannabis sector.

Guernsey has established a licensing framework with the UK that is the same as Jersey's and the Isle of Man's, via a Memorandum of Understanding. This was requested by the sector in order to ensure Guernsey businesses were on a level playing field with competitors and was led by the BGCA in order to provide robust, yet proportionate, regulatory oversight.

A total of seven applications were received and, while only one was successful at this stage, it is clear that a number of companies have invested already in their businesses and the States wants to give them the opportunity to get their product to market by meeting the requirements of the framework/MoU.

Each application is reviewed jointly by the BGCA and the UK Home Office and concludes with a site inspection. Applicants that do not secure a licence receive detailed feedback to support them with submitting further applications if they wish to do so.  Where appropriate, conditional extensions have been granted to licence holders to ensure that they continue to operate legally and to provide them with an opportunity to continue to progress towards the required standards.

Publication of 2020 GDP and GVA estimates

The publication of first estimates of GDP for 2020 show that Guernsey's economy contracted in real terms by 3% in 2020, significantly less than forecast when measures to address the spread of COVID-19 were first implemented.

Figures show a significant contraction in the sectors most impacted by travel restrictions with a 33% contraction in the Hostelry sector and 22% in the Transport and Storage sector. The reported contraction in Guernsey's largest sector, Financial Services, was smaller at 2%. Real growth is reported in Information and Communication (4%) and Real Estate activities (3%). The Household sector also contributed 3% more than in 2019, due to increasing market values of accommodation.

Deputy Mark Helyar, Treasury lead for the Policy & Resources Committee said:

"The publication of first estimates of GDP confirms the message in the budget that Guernsey's response to COVID-19 has helped to mitigate the economic impacts of the pandemic. A 3% contraction in our economy, considered in the context of the unprecedented level of disruption the pandemic has caused and relative to contractions in excess of 9% reported in our near neighbours during 2020, is a particularly positive result.

While we continue to offer support to parts of our Hostelry and Transport sectors, current indications are that Guernsey will have recovered most, if not all, of this activity during 2021 and continuing into 2022."

GDP and GVA statistics are long-established measures used to estimate levels of economic activity in a given time period and these are supported by a wide range of other statistics available at www.gov.gg/data. These statistics are used to monitor the States' progress towards achieving the outcomes of the Government Work Plan.

The new publication is available at https://gov.gg/gdp.

Capacity (Bailiwick of Guernsey) Law, 2020 - Lasting Powers of Attorney

The Committee for Health & Social Care has been in contact with both the Citizens Advice Bureau and Guernsey Cheshire Home regarding Lasting Powers of Attorney (LPAs) following their recent interest in this important part of the 'Capacity (Bailiwick of Guernsey) Law, 2020'.

The States has very much recognised the challenges of the existing arrangements and, only a few months ago, has prioritised the implementation of the Capacity Law through the Government Work Plan.

The introduction of LPAs will allow an individual to plan ahead for a time when they may no longer have capacity by appointing another person as the "attorney" to make decisions on their behalf. The Capacity Law allows for two different types of LPA to be made in relation to 'health and welfare matters' and 'property and financial affairs'.

The Committee is very aware, having recently concluded a period of engagement on the draft Ordinance that will give effect to the introduction of LPAs, of just how important this is for the community. It has sought to prioritise the development of the necessary legal framework to enable Islanders to register LPAs in a straightforward way, whilst also maintaining the necessary safeguards. 

Guernsey attends COP26 and agrees terms for extending the Paris Agreement

Guernsey's Minister with responsibility for External Relations, Deputy Jonathan Le Tocq, today attended the United Nations Climate Change Conference ('COP26') in Glasgow, Scotland.

As part of his programme of events at COP26, Deputy Le Tocq, along with counterparts from Jersey and the Isle of Man, met with the Rt. Hon Greg Hands MP, the recently-appointed Minister of State at the  Department for Business, Energy and Industrial Strategy (BEIS), to discuss the extension of the Paris Agreement.

During that meeting, the UK and Guernsey announced that they had reached an agreement in principle to extend the UK's ratification of the Paris Agreement to Guernsey. 

The agreement in principle to extend the Paris Agreement follows detailed discussions between officials from Guernsey and the UK Government regarding the terms of extension and the ongoing compliance with the obligations under the UK's participation of the Paris Agreement, and it will be subject to a formal extension request from Guernsey in line with domestic constitutional requirements.  

Commission increases Fees for 2022

The Commission plans to increase licence fees paid by firms from 1 January 2022 by 7.6% with the agreement of the Policy & Resources Committee.

On 16 July 2021, the Commission published a consultation paper on its 2022 fees containing four main proposals:-

• an overall fee increase of 10.1% for all sectors;
• a restructuring of fees for the investment sector;
• changes arising from the update to most of the sectors’ laws following the Revision of Laws project; and
• creating a cap for pension scheme fees.

The consultation period ran for eight weeks until 10 September 2021. The Commission’s response to the feedback received as part of the consultation can be found by clicking the button below:

Future-proofing Guernsey’s finance sector

The new and amended regulatory laws, rules, codes and guidance relating to the Commission’s Revision of Laws project come into effect on Monday 1st November and can be found on the Commission’s website here.

The Commission undertook extensive public consultation and engagement on revising the Bailiwick’s supervisory and regulatory laws with the aim of maintaining a respected regulatory regime for financial services thereby maintaining the Bailiwick’s international ‘licence to operate’.

The new and amended regulatory laws offer industry more coherent legislation by removing inconsistencies across sectors. Also, so far as is possible, they “future-proof” the Bailiwick’s regulatory and supervisory regime by including enabling provisions that allow for the later development of new regimes and products. This should allow the Bailiwick to respond quickly and appropriately to the pace of change in the global finance industry.

If licensees have any questions about the implementation of the new and amended laws, they should email revisionoflaws@gfsc.gg or their usual supervisory contact.

Island climbs global green finance index rankings

Guernsey has climbed into position 51 on the latest global green finance index put together by Z/Yen, which describes itself as the City of London’s leading commercial think-tank. That is three places up from the previous index.

Meanwhile, Jersey is down at position 60 after falling six places. The Isle of Man is further behind in spot 78 after dropping four positions.

London was named number one in the latest index, moving up two places and in turn replacing Amsterdam at the top, which fell to second. San Francisco, Zurich and Luxembourg made up the rest of the top five.

Barnaby Molloy, deputy chief executive at industry agency Guernsey Finance, said it was encouraged to see Guernsey’s move up global green finance index rankings – especially to see its change in ranking being one of the largest in the index.

"Guernsey is a first mover and driver in many areas of sustainable finance, including establishing the world’s first regulated green fund regime, the Guernsey Green Fund, which now has more than £4bn in assets, and the creation of an ESG framework by the Guernsey International Insurance Association for its members."

EVENTS

GAT Members' Luncheon - Wednesday 12th January 2022

The next GAT Luncheon will take place on Wednesday 12th January 2022 in the conservatory at Moores Hotel. Leading up to the event we will be closely monitoring the States of Guernsey covid guidance and complying with all relevant restrictions.

Our guest speaker will be Tony Mancini from our sponsors KPMG, who will be presenting "OECD work on the digital economy and global minimum taxes." 

The luncheon will also feature an industry update from GAT Chair, Rhona Humphreys. 

The 2021/2022 series of STEP Lunchtime Lectures continues with the eighth event, presented by Matthew Maltby of Deloitte.

STEP is closely monitoring the States of Guernsey guidance regarding the holding of events and sunsequently this the lecture is planned to be delivered virtually.

Matthew will present "UK tax considerations for offshore trustees" and will cover the following issues:

• 5MLD and the Trust Register – the current position
• Impact of the 2017 changes to domicile and trusts’ taxation
• HMRC’s areas of focus

KPMG Private Equity Forum Webinar - Thursday 2nd December

Join us for our second virtual Private Equity Forum of the year when we will be delighted to welcome our keynote speaker, Luke Anderson, Partner, Private Equity Value Creation at KPMG in the UK. Luke’s focus is large-cap Private Equity funds with a specific focus on technology enabled, digital and data driven transformation and how PE and portfolio management embed ESG driven operational value creation in their transformation plans.

We will also hear from Crown Dependencies team members Ben Honeywood, Harry Briggs and Natalie Finlayson on a selection of PE topics, including asset valuation, ESG and deal trends.

Please register for the webinar via the button below.

December courses from the GTA

Money Laundering Compliance Officer (MLCO) Workshop
 
This course will visit all aspects of a money laundering compliance officer’s (MLCO’s) role, responsibilities and duties in a financial services business in Guernsey.  The course will examine the AML/CFT (anti money laundering and combatting the financing of terrorism) framework in Guernsey and look at the regulatory frameworks in place.  It will also look at the role of the MLCO and how to be an effective individual in that role.

Cost: £195
Enrol by: 2 December 2021
Venue: GTA University Centre
Times: 09.00 to 13.00

Further details and registration here.

 
Compliance CPD Series 2021 – Regulatory Update
 
This lunchtime update session will examine the key regulatory changes experienced in 2021 and look ahead to those expected in 2022.  Focussing on the effect those changes have had or will have on the Guernsey finance industry in an ever-changing regulatory landscape, it will enable you to understand the impact of these changes upon the needs of your business.

Cost: £45
Enrol by: 7 December 2021
Venue: GTA University Centre
Times: 12.30 to 13.30

Further details and registration here.

Confidence Building
 
This half-day course will provide practical tools to help build confidence in a supportive and friendly manner, using a variety of interactive conversational exercises with the aim to establish both a supportive group environment and an achievable personal strategy to develop more confidence.

Cost: £195
Dates: 8 December 2021
Venue: GTA University Centre
Times: 09.30 to 13.00

Further details and registration here.

Compliance Monitoring Programme
 
This half day course explores what makes an effective Compliance Monitoring Programme and how this can be established and maintained in order to meet regulatory obligations. Delegates will come to fully understand the regulatory environment in relation to monitoring, the importance of monitoring, how to develop a compliance monitoring programme and how to prepare reporting and track remediation.

Cost: £195
Begins: 8 December 2021
Venue: GTA University Centre
Length: 09.30 to 12.30

Further details and registration here.

Please contact Camilla Hobbs GTA Programmes Manager for further details on any of the above courses.

SPONSOR ARTICLES

FTSE 350 Boardroom Bellwether survey

Time for a temperature check? Our Head of Company Secretarial Services, Lezanne Kretschmer, suggests that taking a moment to read the key findings of the recently published FTSE 350 Boardroom Bellwether survey, could be worth your while to keep your finger on the pulse.

Demise of the Deflation Machine

The global economy has been inherently disinflationary since at least the early 1990s. The result: a generation of investors who have never had to take inflation risk seriously.

This article examines the reasons why this environment could be changing, outside of the short-term impacts of the pandemic.

To find out more please contact Rachel Holdsworth or click the button below.

Nine Carey Olsen partners recognised as private funds experts by Who's Who Legal

The global strength of Carey Olsen's investment funds practice has been demonstrated after nine of the firm's partners were recognised in the 2022 edition of Who's Who Legal: Private Funds.

Among those recognised, Ben Morgan, partner and head of the funds group in Guernsey, remains the only Guernsey-based lawyer to be recognised as one of six Global Elite Thought Leaders for the offshore region. Global Elite Thought Leaders are chosen based on the number of nominations they received from peers, corporate counsel and other market sources during Who's Who Legal's research. Within the commentary for this year's guide Ben is described as being 'highly sought after for his significant experience of handling investment, property and debt fund formation'.

Ben said: "It is an honour to be recognised as a Global Elite Thought Leader for the offshore region. It is also pleasing that so many of my colleagues have featured within the guide. It underlines the strength of our funds practice not only in Guernsey but also further afield."

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