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

Members' Area

Please note that the password to access your Members' Area page on the GAT website is "Trustees".

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

Message from the Chair

Our next GAT luncheon on Wednesday 6th October has now sold out. Fiona Crocker from the GFSC will talk about the role of the private sector in Guernsey's Moneyval evaluation.  A waitlist is now in place, should you like to be added to it, please do register via Eventbrite HERE. A bonus luncheon is scheduled to take place on Thursday 25th November, with our sponsor Ruffer LLP presenting. 

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

Enjoy your September newsletter.

Kind regards

Rhona Humphreys

GAT Chair

Annual Validation filing deadline

Monday 28th February 2022

Members are advised 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

Policy & Resources Committee highlights opposing GST could mean bigger tax burden on working Islanders

On the eve of the States Meeting that will see the Assembly discuss the Tax Review 'green paper', the Policy & Resources Committee is appealing to political members to recognise the seriousness of the financial problems the Island is facing, and that rejecting a Goods and Services Tax (GST) will not remove the need to increase taxation and that the alternatives could be more damaging for the economy.

Deputy Peter Ferbrache, President of the Policy & Resources Committee said:

"We know that many States Members are reluctant to adopt a GST as part of the solution to the funding shortfalls we'll face if we are to maintain reasonable public services that meet the growing demand for both current and long-term health and care needs in particular.

That very big underlying funding gap - up to £80million per year by 2025 - does not go away if members reject a GST.  A solution will still need to be found.  Making savings in public spending is absolutely critical. But given the scale of the numbers that won't be enough on its own unless there were truly sweeping cuts to frontline services, and some major services stopped altogether.  We must remember that one of the core functions of our government is to provide critical services to those who otherwise could not afford them."

Bailiwick of Guernsey travel rules to align with UK from 4 October

The Civil Contingencies Authority is announcing further changes to the rules for travel into the Bailiwick and the rules for cases and contacts of cases identified in the Bailiwick.

The changes will take effect in two stages, with some changes having already come into effect on 23 September and the other changes coming into effect on 4 October.  This will see the Bailiwick's border rules align much more closely with the UK's, for the first time since the beginning of the pandemic more than a year ago.  It will also mean fewer restrictions overall for travel into the Bailiwick, opening up more options for people to be able to see friends, family and loved ones, and for those wanting to relocate as well as more economic opportunities.

Changes effective from 23 September:

From 23 September, persons who can provide proof that they have received a full course of an approved Covid-19 vaccine (AstraZeneca, Pfizer, Moderna and Jannsen), regardless of where they received their vaccine doses, have been eligible to benefit from reduced restrictions on arrival into the Bailiwick of Guernsey. 

People who test positive for COVID-19 will be required to isolate for 10 days, a reduction from the previous 14 day requirement and there have been changes to the general rules for people identified as the contact of a positive case (further details in the article).

Changes effective from 4 October:

From 4 October, there will be significant changes to the rules for travel to the Bailiwick. All travel from the Common Travel Area (the United Kingdom, Republic of Ireland, Jersey and the Isle of Man) regardless of vaccination status will be treated as a 'blue' arrival.  

These travellers will need to purchase and complete a course of lateral flow tests.  There are no other restrictions for these travellers. Please read the full article for further information on changes from 4th October.

Contribution increases proposed to ensure long-term sustainability of Funds

The report again highlights the unsustainability of the Guernsey Insurance Fund and Long-term Care Insurance Fund, which actuarial projections show will be exhausted in 2039 and 2053 respectively, if nothing is done to address this.

The Guernsey Insurance Fund provides financial assistance during old age, bereavement, incapacity, unemployment, maternity/early parenthood and death. The Long-term Care Fund is designed to assist with the costs of care in private nursing and residential homes.

The date that the Long-term Care Insurance Fund is expected to be exhausted is brought forward to 2038 if the scope of the Long-term Care Insurance Scheme is expanded to cover the provision of care at home, as approved in principle by the States in August 2020.

In light of this, the Committee proposes to increase the percentage contribution rate for employers and employees into the Guernsey Insurance Fund by 0.1% each (i.e. 0.2% overall for class 1 contributors) per year for ten years, with the rates for self-employed persons and non-employed persons under pension age increasing by 0.2% each per year over the same period.

The Committee also proposes to increase the percentage contribution rate for employees, self-employed persons, and non-employed persons (under and over pension age) into the Long-term Care Insurance Fund by 0.1% each per year for four years.

The Committee has formally requested that the Policy Letter be debated by the States at the meeting commencing on Wednesday 13th October. If agreed by the States, the above changes will take effect from 1st January 2022.

States of Guernsey to invest in recovery by accelerating roll-out of fibre to all homes and businesses

On Monday 13th September the States Assembly was asked to support a capped investment in Guernsey's digital infrastructure of up to £12.5m, to accelerate the fibre roll-out.

A joint Policy & Resources Committee and Committee for Economic Development Policy Letter was submitted setting out the case for a transformative investment in Guernsey's digital infrastructure.

The President of the Policy & Resources Committee, Deputy Peter Ferbrache said:

"Following the election we made this a priority. Businesses, the wider community and indeed government have told us that we need to accelerate the roll-out of fibre so that our digital infrastructure is faster, more resilient and accessible to all. We've listened and acted on this. This is a critical decision for this States, as we are presenting the opportunity to make a significant investment to ensure our island keeps pace with and in some cases overtakes our competitors around the world.

The Government Work Plan shows that we need 21st century infrastructure to meet our challenges - in the global economy, on skills and education, on digitising public services to cut the cost and size of government.  If the States Assembly agrees this investment, the accelerated roll-out will begin before the end of this year, be finished in 2026, and no-one in our community will be left behind. Importantly, it will also tell the world that Guernsey is investing in its future."

Feedback statement on the new Fiduciary Rules, 2021 Consultation Paper

On Wednesday 15th September the Commission published the feedback to its Consultation Paper on the new Fiduciary Rules, 2021.

In June 2021, the Commission published a Consultation Paper making proposals for the necessary revision of the Fiduciary Rules, 2020 in readiness for the coming into force of the revised Fiduciaries Law on 1st November 2021. The key revision proposed related to the re-categorisation of fiduciary licensees. The Commission has now published the feedback to the Consultation Paper which can be found on the Consultation Hub HERE. 

A notice has been sent to all full fiduciary licensees explaining the re-categorisation process. Copies of the notice and a draft version of the final revised Fiduciary Rules, are available by clicking the buttons below.

Formal publication of the final revised Fiduciary Rules is intended to take place on the 6 October in accordance with the Commission’s news release of 13 September 2021.

Revised regulatory laws

On Friday 10 September, the States of Deliberation approved the necessary Ordinances to bring into effect the revision of the five principal Laws dealing with the regulation of financial services business in the Bailiwick as part of the Commission’s Revision of Laws project.

The passing of the commencement ordinances means that the following laws will come into effect on 1 November 2021:

• The Protection of Investors (Bailiwick of Guernsey) Law, 2020
• The Banking Supervision (Bailiwick of Guernsey) Law, 2020
• The Regulation of Fiduciaries, Administration Businesses and Company Directors, etc (Bailiwick of Guernsey) Law, 2020
• The Financial Services Commission (Enforcement Powers)(Bailiwick of Guernsey) Law, 2020

It will also mean that the amendments to the Insurance Business (Bailiwick of Guernsey) Law, 2002, and the Insurance Managers and Insurance Intermediaries (Bailiwick of Guernsey) Law, 2002 will come into effect on the same date.

In order to implement effectively the new regulatory laws, the Commission has drafted and consulted on revised rules, codes and guidance to accompany the new laws. Most of the changes are minor in nature and do not set out any material policy changes from the previous rules and guidance. The Commission is currently considering the feedback received as part of the consultation process and will publish the revised rules and guidance on Wednesday 6 October.

EVENTS

GAT Members' Luncheon - Wednesday 6th October

The GAT Quarterly Luncheon will take place on Wednesday 6th October at Moores Hotel.  Fiona Crocker of the Guernsey Financial Services Commission will present about the role of the private sector in Guernsey's upcoming Moneyval evaluation.

Tickets have sold out for the event, however we do have an active waiting list.  Should you wish to be added please click the button below:

The 2021/2022 series of STEP Lunchtime Lectures continues with the third event, presented by James Lister of Stevens & Bolton LLP.  

James will look at some recent decisions on trustee applications to Court for a blessing of their decision(s) under the Public Trustee v Cooper regime, with a particular focus on when those applications have gone wrong, or been rejected by the Court, including the English Court’s decision in Schumacher v Clarke.

GAT Bonus Luncheon - Thursday 25th November 

There will be a 'bonus' GAT Luncheon event on Thursday 25th November at Moores Hotel, with a presentation from our sponsors, Ruffer LLP.

Please put the date in your diaries, an invitation to book will be circulated to members shortly.

Cherie Blair to headline Guernsey Private Wealth Forum

WE ARE GUERNSEY is delighted to confirm that leading international human rights lawyer Cherie Blair will headline the fourth annual Guernsey Private Wealth Forum as it returns as a physical event in London in October.

A long-time campaigner for women’s equality, Mrs Blair is also the Founder of the Cherie Blair Foundation for Women, which is fighting to close the global gender gap in entrepreneurship through supporting women entrepreneurs in low and middle income countries.

Mrs Blair’s efforts to make the world a better place ties in with this year’s event, entitled 'The Power of Capital', which will focus on the good that wealth can do.

For further information and to register for the event, please click the button below.

October courses from the GTA

Top Teams: what it takes to go from Good to Great – taster session
In this free session Chris Atkinson, executive team development consultant and coach, gives an insight into what it take to take a team from being good to great, drawn from his experience of coaching winning teams.  Chris’s “Good to Great” leadership development programme addresses the challenges faced in building a high-performing team and how to keep it simple.  Chris will be joined by Olly Duquemin of Resolution IT whose company has recently embarked on the programme.

Cost: FREE
Enrol by: 5 October 2021
Venue: GTA University Centre
Times: 08:30 to 09:30

Further details and registration here.

The Role of the Administrator
This two-day workshop will give delegates a good basis of skills, tools and techniques to further their experience and career as an office administrator.  The role of an administrator, vital to any organisation, can vary greatly from organisation to organisation, however, the fundamental skills required are largely the same and this course seeks to ensure that attendees come away from this course with all the essential skills they will need to succeed in the role from time management, to accuracy and attention to detail, communicating professionally and effectively and dealing with difficult people and much more.

Cost: £450
Enrol by: 12 &  13 October 2021
Venue: GTA University Centre
Times: 09:00 to 16:00 on each day

Further details and registration here.

Introduction to Bookkeeping
This two-day course is designed for those new to an accounting role or for those who simply need to refresh their bookkeeping skills.  The course is designed to provide you with a sound knowledge of bookkeeping, enabling you to return to your office and immediately apply the skills learned.

Cost: £475
Dates: 13 & 18 October 2021
Venue: GTA University Centre
Times: 09:00 to 12:30

Further details and registration here.

The Client Due Diligence Process

This half day workshop addresses the regulatory requirements for undertaking due diligence on clients at all levels.  You will learn about the information and documentation required and how to risk rate clients using a risk based approach in accordance with Guernsey regulatory requirements.

Cost: £195
Begins: 21 October 2021
Venue: GTA University Centre
Times: 09:00 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

Guernsey introduces new compliance measures for CRS and FATCA reporting

On 14 September 2021 the Revenue Service published Bulletin 2021/5 which covers enhanced compliance strategies introduced by a new law that came into force in July earlier this year.

To read the Carey Olsen briefing note which provides a summary of those strategies and will be of interest to those operating in the finance industry and compliance sector, please click the button below.

Worried about inflation? Why not?

The return of inflation calls into question the certainty upon which the entire investment system is based. Inflation could spell disaster for ‘balanced’ portfolios.

This presents an asymmetric opportunity for investors – whereby avoiding catastrophe, comes at relatively little cost.

Please click the button below to read more on why we’re worrying about inflation, and positioning portfolios for a new status quo.

Please contact Rachel Holdsworth if you have any questions.

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