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 Wednesday 15th February when Antony Prynn of KPMG will be presenting "Consolidation in the Fiduciary Market – should I buy, sell, merge or sit tight?" Please note the change of venue - luncheons are currently taking place at the Old Government House Hotel due to the refurbishment of Moores. Booking is available HERE or the Events section below.

The dates of future luncheons can be viewed and/or booked 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 January newsletter.

Kind regards

Rhona Humphreys

GAT Chair

CONSULTATON PAPERS

Extension to deadline: Amendments to Legislation administered by the Guernsey Registry

The Committee for Economic Development has extended the deadline for responses to the consultation paper issued on 2nd December 2022, which is seeking views from industry and stakeholders on proposed changes to legislation administered by the Guernsey Registry, following the issue of an addendum to the paper.

In recent years, the Guernsey Registry's responsibilities have increased significantly, with its varied functions and powers spanning across several pieces of legislation. The time is therefore right for a review of the legislation that the Registrar administers, particularly with respect to legal persons such as companies. The legislation reviewed and subject to proposals comprises the commercial laws (namely the Companies (Guernsey) Law, 2008, the Foundations (Guernsey) Law, 2012, the Limited Partnerships (Guernsey) Law, 1995, and the Limited Liability Partnerships (Guernsey) Law, 2013), the Beneficial Ownership of Legal Persons (Guernsey) Law, 2017 and the Charities etc.. (Guernsey and Alderney) Ordinance, 2021.

The aim of the review is to achieve consistency in both legislation and practice and introduce more clarity, simplicity and uniformity in the oversight of legal persons administered by the Registry. The review also provides an opportunity to address points that have come to the Registrar's attention and apply recognised good practice.

A set of streamlining changes to the legislation is therefore proposed to provide greater accuracy and consistency in the information available to the Registrar, further enhance and harmonise the application of the Registry's enforcement measures and introduce greater operational efficiencies in practice.

Responses to both the consultation paper and its addendum should be sent directly to economicdevelopment@gov.gg by the revised deadline of Monday 20th February. Both can be viewed and/or downloaded via the buttons below.

Consultation Paper in relation to Transparency and Beneficial Ownership of Legal Arrangements

A Consultation Paper was issued by the Policy and Resources Committee on Monday 23rd January, which makes proposals to address Recommendation 25 of the Recommendations issued by the Financial Action Task Force (FATF); this Recommendation covers transparency and beneficial ownership of legal arrangements.

Although the language of the measures needed under Recommendation 25 only refers to express trusts, equivalent measures are required for other forms of legal arrangement with a similar structure or function. This consultation therefore makes proposals for all legal arrangements that may be created under the law of the Bailiwick, namely express trusts, limited partnerships without legal personality (LPs)1 and general partnerships. 

The GAT/STEP Technical Committee will be submitting a joint response to the consultation and your comments would be much appreciated by email to admin@guernseytrustees.org by Monday 20th February, so that we may take them into consideration.  Individual responses should be emailed to policyandresources@gov.gg by the closing date of Tuesday 28th February.

NEWS

Policy & Resources Committee urges States to address fiscal deficit as Guernsey's credit rating is downgraded by S&P Global

Following S&P Global report downgrading the States of Guernsey's credit rating from 'AA-/A-1 +' to 'A+/A- 1' the Policy & Resources Committee is highlighting some of the reasons cited by S&P ahead of this month's Tax Review debate, urging States Members not to leave the growing deficit in public finances unaddressed as a failure to stabilise the financial position, or any further delay could see the credit rating downgraded further.

S&P's assessment recognises that Guernsey's economy is faring well despite the external impacts of the COVID-19 pandemic and the war in Ukraine. They have estimated that the local economy rebounded by 5.6% in 2021, well ahead of expectations, and S&P expect to see growth of 1.8% in 2022.

However it highlights 'increasing pressure on health and care services is intensifying the squeeze on public finances, while the shrinking working age population also threatens tax collections.' It warns of further 'negative rating action... if the government failed to implement tax reforms that stabilise its funding needs.'

Read the full media release HERE.

The report is available to view and/or download by clicking the button below.

Lending, Credit & Finance - Feedback to Consultation

On Thursday 19th January the Commission published its feedback paper following the consultation on Lending, Credit & Finance issued on 21 July 2022, together with the final Lending, Credit & Finance Rules and Guidance and a s40 instrument giving notice of various exemptions from the requirement to hold a licence in respect of the carrying on of business regulated by the law.

The Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022 was approved by the States of Deliberation, the States of Alderney and the Chief Pleas of Sark in July 2022. It will come into effect in full on 1 July 2023, by which time firms carrying on business regulated by the law will need to be licensed and to follow the rules set out by the Commission. As well as regulating the provision of consumer credit, the law regulates Virtual Asset Service Providers and replaces The Registration of Non-Regulated Financial Services Businesses (Bailiwick of Guernsey) Law, 2008.

The Commission received an excellent response to the consultation, with more than 50 responses from across a range of stakeholders. It has reviewed all of the responses received and made a number of changes to the draft Rules and Guidance which are designed to strike a balance between proportionate regulation and the protection of customers without unduly restricting the market and maintaining access to services from a variety of providers.

The Commission will accept licence applications from 1 February 2023. Forms are available on the website and persons requiring a licence are strongly encouraged to apply early. Those applying before 31 March 2023 will benefit from a significant (50%) discount on the application fee. The Commission is expecting a considerable number of new licence applications and is aiming to process all applications received by 31 March 2023 by 1 July 2023.

Guernsey Finance appoints dedicated representative for the Middle East

Guernsey Finance is pleased to announce the appointment of a new Business Development representative for the Middle East.

Aaron Russell-Davison brings a wealth of industry expertise to the role, following a 30-year career in finance and banking. Previously he has held the role of Standard Chartered Bank’s Global Head of Debt Capital Markets. Since retiring from this position in 2015, he has worked extensively as a Non-Executive Director (NED), notably at Amana Bank PLC – a leading Islamic Bank – where he also chairs the Board Integrated Risk Committee.

Mr Russell-Davidson said “I am really excited to join Guernsey Finance and explore the opportunities that are present in the Middle East. Guernsey is the perfect location for wealth management, as it has a long-established tradition of providing specialist services for sophisticated clients and their families,” he said. “I am committed to applying my industry experience and strong interest in Middle Eastern affairs to enhance the financial ties between Guernsey and its regional counterparts.”

EVENTS

Members are warmly invited to the second GAT Luncheon of 2023, taking place on Wednesday 15th February when Antony Prynn of KPMG will be presenting "Consolidation in the Fiduciary Market – should I buy, sell, merge or sit tight?"

Antony's presentation will be preceded by a short talk from Simon Le Tocq and Carol Goodwin of the GTA, which will outline their NED Development Programme.

Please note the change of venue. The luncheon will take in the Colborne Room of the Old Government House Hotel, due to the refurbishment of Moores.

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

GAT Co-Deputy Chair, Rupert Morris will deliver a welcome and industry update. Booking is available via Eventbrite or by clicking the button below.

STEP Lunchtime Lecture - 2022/2023 Series

The next STEP Lunchtime Lecture of 2023 will take place on Monday 13th February and will cover the ESG and Sustainability issues faced by Trustees.

Dipak Vashi of Grant Thornton will be covering the following:

• What is ESG?

• Why does it matter to ALL of us?

• Business services and what you need to do

• What next?

The most significant and wide-ranging reform of Guernsey's corporate insolvency regime since 2008 came into force on 1st January 2023 and will have implications for company directors and their advisors. At this joint GAT/STEP event, speakers Ben Rhodes and Andrea Harris from Grant Thornton, alongside David Jones and Tim Bamford from Carey Olsen will cover the following considerations:

• What are the steps for placing a solvent or an insolvent company into Members' Voluntary Liquidation, and how do they now differ?

• Can a director of a company, or another connected person, be appointed Liquidator?

• What considerations should a director have when making a Declaration of Solvency?

• What are the potential repercussions in making an incorrect Declaration of Solvency?

• What requirements will Liquidators and Administrators now have in relation to director misconduct?

• In what circumstances might an audit be required?

• How might these changes impact the duration and the cost of an Administration, or a Members’ Voluntary Liquidation?

Booking will be available soon and GAT members will receive an invitation via email.

A selection of upcoming courses through the GTA

Corporate Governance

The objective of this session is to explore the role of corporate governance within an organisation. This half day course will look at the theoretical and relevant regulatory aspects of corporate governance, and then encourage you to apply these in a practical manner.

Cost: £225
Date: 14 February 2023

Venue: GTA University Centre
Times: 09:00-13:00
Further details and registration here.

Introduction to FATCA and CRS

This short course provides an introduction to the basic concepts of FATCA and CRS as well as the practical implications.  If dealing with FATCA and CRS for the first time, this course will assist delegates in getting to grips with the purpose, terminology and execution of Automatic Exchange of Information.  

Cost: £99
Date: 14 February 2023
Venue: GTA University Centre
Times: 09:30 – 11:00
Further details and registration here.

STEP Advanced Certificate in Trustees’ Duties: Investment and Management of the Trust Fund

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 you to implement investment advice, analyse and monitor trust investments, and report to the beneficiaries.

Cost: £1,625
Start Date:  Enrol by 17 February 2023
Delivery: Online
Times: 4 months
Further details and registration here.

Minute Taking Masterclass 
This half day course has been designed to provide essential skills to those required to attend and minute meetings and to enable delegates to confidently put those skills into  practice at meetings of all levels.

Cost: £195
Date: 21 February 2023
Venue: GTA University Centre
Times: 09:00 to 12:30
Further details and registration here.

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

Cost: £475
Date: 22 February 2023 and 1 March 2023
Venue: GTA University Centre
Times: 09:30 to 16:00 each day
Further details and registration here.

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

NED Development Programme

Guernsey will need to broaden its director talent pool to successfully meet the new challenges that 2023 will send our way. Do local boards have the right skills to overcome problems which they may never have encountered before e.g. disrupted supply chains, an increase in cyber-attacks, climate risks, investor pressures on ESG and a global War on Talent? In facing these

challenges, boards will need to anticipate skill gaps and be open to accepting non-traditional skill sets into the boardroom. How many boards that you know have directors with backgrounds in science or technology or CSR or human resources?

In the IOD Company Direction Programme Guernsey has a gold standard course that provides an excellent foundation for aspiring directors; and the GTA University Centre also offer a FREE mentorship programme for those knocking on the boardroom door. The NED Development Programme seeks to bring through the next generation of local directors with placements on boards under the guidance of experienced board members.

Through the NED Development Programme partner boards can help diversify and develop the next generation of local NEDs by transferring their experience, knowledge and skills to participants. Partner boards benefit from fresh thinking that a developing NED can bring to the table - they often have modern day skill sets not found on long-established boards.

For participants, this programme differs to others as – in addition to training courses and networking events – they benefit from a 12-month board placement including the provision of a mentor. This placement gives them first-hand experience of what it is like to sit on a board, an understanding of NED roles and responsibilities, and opportunities to develop core knowledge and skills required to become a NED. Participants leave the programme with the confidence, experience and knowledge to undertake full-time NED positions.

For further information please click on the button below or contact Simon Le Tocq on 224571 or email NED@gta.gg

SPONSOR ARTICLES

Read Jonathan Ruffer’s latest Investment Review

To get a sense of where we’re going in the inflationary journey, it helps to understand where we came from.

Jonathan Ruffer’s quarterly review explores the root causes of this new economic landscape. He discusses why, in a regime of inflationary volatility, no one investment allocation will be enough to steer portfolios through what unfolds over the next few weeks in markets.

Click the button below to read the review.

Please contact Rachel Holdsworth if you have any questions.

The Importance of Breadth and Depth in your AML/CFT Compliance Resource

Recently, there has been a series of regulatory fines and public statements across Guernsey, Jersey and Malta primarily for shortcomings in respect of Corporate Governance, including the application of timely and effective compliance monitoring and appropriate AML/CFT controls.

Aspida’s Mark Chammings, Head of Financial Crime unpicks what this means for licencees.

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