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 first luncheon of the new year will take place on Wednesday 11th January when Natasha Kapp of Carey Olsen will be presenting a talk covering The UK's Register of Overseas Entities (ROE) and the future of public beneficial ownership registers. Please note the first three luncheons of 2023 will take 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

We continue to consult with the Guernsey Registry about the recent changes to the Annual Validation process and the IT infrastructure of the Registry. The latest consultation paper is below. Should you have any feedback or would like to volunteer to be part of a working group please get in touch.

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

With warmest wishes from GAT for a restful festive break, enjoy your December newsletter.

Kind regards

Rhona Humphreys

GAT Chair

NEWS

Statement of the three Crown Dependencies concerning access to Registers of beneficial ownership of companies

In 2019, the Crown Dependencies (Guernsey, the Isle of Man and Jersey) made a public commitment concerning Registers of beneficial ownership of companies. We have a longstanding, and independently assessed, track record of meeting international standards. We are proud of our global leadership in tax cooperation, combatting money laundering and countering the financing of terrorism and in providing appropriate and effective transparency.

The recent judgment of the Court of Justice of the European Union impacts considerations in the Crown Dependencies around implementing the public commitment in line with consideration of factors around data protection and human rights. You may view and/or download the Press Release issued by the EU Court of Justice by clicking the button below. We have all committed to provide access to obliged entities for the purpose of conducting customer due diligence by the end of 2022 and have therefore consulted on the position and produced policy positions.

However, in light of this CJEU judgment, implementation of this legislation will be delayed for a short period to enable consideration of its impact and obtain specialist legal advice, this is expected to be completed in early 2023. Subject to that advice, our intention to adopt legislation in our respective jurisdictions as soon as possible after this time.

In respect of extending access beyond obliged entities, we intend to obtain expert legal advice on all relevant issues and, in due course, intend to review the public commitment in line with that advice and any recent development of international best practice.

US Business Development Strategy Steering Group

Guernsey Finance is looking to create a US Business Development Strategy Steering Group, made up of industry firms that focus on the US market, in order to discuss and agree the Business Development strategy for both private wealth and funds sectors.

The group would consist of industry professionals to include a private wealth lawyer, trustee, investment manager and tax advisor and a funds lawyer, custodian, administrator and audit/tax firm.

Should you or your firm, as members, be interested in representing GAT within the steering group please contact Rhona Humphreys, GAT Chair, in the first instance.

Committee for Economic Development consults on changes to legislation administered by the Guernsey Registry

The Committee for Economic Development is seeking views from industry and stakeholders on proposed changes to legislation administered by the Guernsey Registry.

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.

Comments can be emailed to GAT by Friday 13th January should you wish your views to be included in our joint response.

Alternatively, you may respond directly to directly to economicdevelopment@gov.gg by the deadline of Monday 23rd January.

Consultation Paper on revisions to the supervisory framework surrounding the Six Directorship Exemption

On Wednesday 23rd November the Policy and Resources Committee, with input from the Guernsey Financial Services Commission, issued a consultation paper seeking views from stakeholders on proposed changes to the supervisory framework surrounding the six directorship exemption.

The proposed changes will seek to enhance the effectiveness of the Bailiwick’s supervisory framework by expanding the scope of the Commission’s supervisory powers and also constitute part of the preparations for the next evaluation of the Bailiwick of Guernsey by the Council of Europe Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (“MONEYVAL”).

During the consultation period, the Commission will hold a number of drop-in sessions where stakeholders can discuss the proposals and have questions addressed before responding to the consultation. Details of the dates and times of the drop-in sessions will be published on the Commission’s website in due course.

Please click the button below to view and/or download the consultation.

Responses should be emailed to policyandresources@gov.gg and AMLCFT@gfsc.gg by the closing date of Monday 16th January 2023.

Economic Development moves forward improvements in credit sector consumer protection

The Committee for Economic Development is continuing to progress measures which will improve consumer protection in the lending and credit sector.

At its most recent States Meeting, the States approved the commencement ordinance for the Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022 (the 'LCF law'), meaning it can come into force in 2023. This follows a policy letter brought to the States by the Economic Development and Policy & Resources Committees in 2021.

The LCF Law will introduce an improved and enhanced regulatory regime for businesses involved in providing lending, credit and finance to consumers.

In the previous month, the States also supported the Committee for Economic Development's proposal to introduce Low Value Debt Relief ('LVDR') legislation. Once in place, this legislation will provide a safety net for local residents who may find themselves in difficulty because of low amounts of debt that result from a significant change in their personal circumstances, and which they have no reasonable way of paying due to their limited financial means. While there will be strict eligibility criteria, as part of the legislation, the introduction of LVDR will make a real difference to the small number of people who find themselves in this very difficult situation, often as a result of a change in circumstances in their lives.

Policy & Resources Committee Open Letter on the Tax Review debate

On Thursday 8th December, following the publication of the Policy and Resources Committee's recommendations in the Tax Review Policy Letter, the Committee released an open letter in order to address some of the questions which arose.

You can read the letter in full by clicking the button below.

The Guernsey Financial Services Commission attended a recent meeting with the GAT technical committee who raised the scenario of the potential challenge faced by a new trustee in complying with rule 2.5.4(4) of the Fiduciary Rules in respect of the transfer of a Client Bank Account holding Fiduciary Client Money and receipt of bank confirmation of the account’s status as such.

For members' information, in response, the GFSC has confirmed the following:

"Given that the money remains in a Client Bank Account, held separately from the previous trustee and other client’s money, we can confirm that it is the Commission’s view that it is acceptable for the new trustee to seek the confirmation from the bank as soon as practical after the new trustee’s appointment".

Thematic Review of ML and TF Business Risk Assessments

On Thursday 15th December the Commission issued its report on the thematic review of the money laundering and terrorist financing business risk assessments of more than 100 licensed and registered firms across all sectors.

The thematic was undertaken to assess how well firms identified and assessed these risks to their businesses. The results were positive, demonstrating that most Business Risk Assessments met the Bailiwick’s regulatory requirements. The assessments are important elements for the setting of appropriate risk-commensurate controls within firms.

A copy of the thematic review can be found on the Financial Crime Division's Thematic Reviews page.

The Commission will be holding an industry event in 2023 to discuss the findings, for which invitations will be sent out in due course. In the meantime, all firms are encouraged to consider the report’s contents, particularly when updating and revising their business risk assessments.

Six Directorships Registration Proposals meeting - Monday 9th January

Following the States of Guernsey's Policy & Resources Committee’s recent publication of its Consultation Paper on proposed revisions to the supervisory framework surrounding the six directorship exemption, the Commission will be hosting the second of two meetings for interested persons at its offices on Glategny Esplanade on Monday 9th January 2023 from 8.30am to 10am.

At the start of the meeting, the Commission will give a presentation on the proposals followed by discussion and questions over a coffee. These meetings will also be an opportunity for attendees to ask for clarification on any aspect of the proposals. Also covered will be the Commission’s parallel consultation on Exemption of Directorships connected to Authorised and Registered Collective Investment Schemes which was issued on 8th December.

GAT would encourage anyone who is unsure whether their directorship falls under the six directorships exemption and therefore the proposed registration regime, to attend.

Reservation requests should be sent to AMLCFT@gfsc.gg by Thursday 5 January 2023.

EVENTS

Members are warmly invited to the first GAT Luncheon of 2023, taking place on Wednesday 11th January when Natasha Kapp of Carey Olsen will be presenting a talk covering The UK's Register of Overseas Entities (ROE) and the future of public beneficial ownership registers.

Please note the first three luncheons of 2023 will take place at the Old Government House Hotel, in either the Regency or Colborne room, 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 Chair, Rhona Humphreys 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 first STEP Lunchtime Lecture of 2023 is taking place on Tuesday 10th January, presented by Natalie Pinon and Rebecca McMurray of the National Philanthropic Trust UK.

Natalie and Rebecca will look at the differences between donor-advised funds and independent charitable structures and will also highlight some of the ways in which private clients and their wealth advisors use DAFs through different case studies.

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

A selection of upcoming courses through the GTA

STEP Advanced Certificate in Cross-Border Estates

This course will explore issues that advisers need to consider when advising clients with a cross-border aspect to their estate, taking examples from common law, civil law, Shariah law and hybrid jurisdictions.

Cost: £995
Start Date:  Enrol by 16 January 2023
Delivery: Online
Times: 6 months
Further details and registration here.

STEP Advanced Certificate in Trust Disputes

This course will provide you with a practical overview of themes that are commonly encountered, in order for professionals to anticipate and head off problems, thus hopefully reducing the risk of litigation, as well as providing guidance if and when proceedings are necessary.

Cost: £695
Start Date: Enrol by 16 January 2023
Delivery: Online
Times: 4 months
Further details and registration here.

Fund Overview - Level 1 
This course focuses on investigating the types of fund structures used in Guernsey and importantly why they are used. The review includes investment companies, unit trusts, limited partnerships, PCCs and ICCs.

Cost: £325
Date: 24 January 2023
Venue: GTA University Centre
Times: 09:00 to 17:00
Further details and registration here.

Trust and Company Bookkeeping – Level 1 
The session gives trust administrators and those new to client accounting a sound grasp of basic trust and company accounting; it will ensure that you understand debits and credits and the basics of preparing simple financial statements.

Cost: £325
Date: 1 February 2023
Venue: GTA University Centre
Times: 09:00 to 17:00
Further details and registration here.

Advanced Communication Skills
On this course, you will gain an enhanced communication skill set to connect with others in such a way that inspires, motivates and gains the positive influence essential for top performance and results.

Cost: £295

Date: 3 February 2023
Venue: GTA University Centre

Times: 09:00-17:00
Further details and registration here.

How to Create a Culture of Accountability

This course will show you how clarifying accountability can improve collaboration and team performance.

Cost: £250
Date: 9 February 2023

Venue: GTA University Centre
Times: 09:00-12:30
Further details and registration here.

Corporate Governance

The objective of this session is to explore the role of corporate governance within an organisation. This 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.

Please contact Michelle Morley GTA Head of Programmes for further details on any of the above courses.

SPONSOR ARTICLES

Read the Green Line: The bull market in belief

What’s worse – a lie that draws a smile or a truth that draws a tear? Perhaps the fall in equity valuations now represents an opportunity.

Investment Director Duncan MacInnes suggests not and looks at why a rally from here will depend on investors’ willingness to believe.

Click the button below to read the full article.

Please contact Rachel Holdsworth if you have any questions.

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