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

Natasha will be covering the UK's Register of Overseas Entities. With the deadline for all overseas entities owning UK land to have an overseas entities registration number (OEID) of 1st February 2023 fast approaching and the serious implications of errors within applications, Natasha will look at what Trustees need to consider. Booking is available via Eventbrite or the Events section below.

We are currently consulting with the Guernsey Registry about the recent changes to the Annual Validation process and the IT infrastructure of the Registry. Should you have any feedback or would like to volunteer to be part of a working group please contact me.

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

Enjoy your November newsletter.

Kind regards

Rhona Humphreys

GAT Chair

NEWS

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.

Deputy Mark Helyar elected as Vice-President of the Policy & Resources Committee

The Policy & Resources Committee has advised the Bailiff that it has elected Deputy Mark Helyar as Vice-President of the Committee and Deputy Chief Minister.

This follows the recent resignation of Deputy Heidi Soulsby from the Committee.

Deputy Helyar said:

"It is an enormous privilege for me to be elected as Deputy Chief Minister. I look forward to carrying out this role alongside my responsibilities as Treasury lead, particularly at this crucial time where we are preparing to debate our Tax Review recommendations."

The Policy & Resources Committee also formally agreed that Deputy Bob Murray, who was recently elected as the newest member of the Committee, would lead in the areas of Corporate Services and the Government Work Plan.

Economic & Financial Crime Bureau now enshrined in Law

The Economic & Financial Crime Bureau and Financial Intelligence Unit [Bailiwick of Guernsey] Law 2022 has now come into force, meaning the organisation is a legally independent and autonomous law enforcement authority.

The new Law establishes the Office of the Director of the Economic & Financial Crime Bureau (EFCB) and clarifies the role and the functions of both the Bureau and the Financial Intelligence Unit to tackle money laundering and terrorist financing.

The EFCB was established in June 2021 by the Committee forHome Affairs and approved by the States of Guernsey to strengthen the island's response to financial crime. The FIU, formerly part of Bailiwick Law Enforcement, now falls under the umbrella of the EFCB though retains its operational independence.

Deputy Rob Prow, President of the Committee for Home Affairs, said:

"In 2024, Guernsey will be evaluated once again by MoneyVal. This inspection will for the first time assess the effectiveness of our AML/CFT systems and the measures that we as an island take to tackle money laundering and terrorist financing. We have for some time been preparing for this evaluation to ensure that our response to financial crime reflects modern practices and we are fully supportive of the EFCB and its Director in the measures they are taking.

This is not just about the inspection, however. We are always looking at ways to strengthen our defences against financial wrong-doing and the creation of the Bureau was the natural next-step for us to take."

The EFCB has been operating successfully since June 2021 under administrative provisions, however the new Law provides clarity around its role and functions.

Update on the Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022

In July 2022, the Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022 (the “Law”) was approved by the States of Guernsey, the States of Alderney and the Chief Pleas of Sark. A Commencement Ordinance, was passed on Friday 25 November, which confirmed that the Law will come into effect in two stages.

Various provisions come into effect from 1 January 2023 which will allow the Commission to put in place its own Rules and guidance, and to invite applications for licensing. The Law will then come into full effect from 1 July 2023.

The new Law covers several different areas:

• It introduces consumer protection and the regulation of credit provision and home finance across the Bailiwick for the first time;

• It replaces the existing registration regime for non-regulated financial services businesses (“NRFSBs”), with licensing and regulation requirements;

• It introduces the regulation of virtual asset service providers (“VASPs”) which brings the Bailiwick into line with international standards; and

• Finally, it requires peer to peer and crowdfunding platforms in the Bailiwick to be licensed and regulated.

   

Please click the button below for more information regarding the purpose and scope of the Law, and what it will mean for individuals and firms conducting activities covered by the Law, as well as consumers in the Bailiwick.

Commission Fees for 2023

The Commission plans to increase licence fees paid by firms from 1 January 2023 by 8.0% with the agreement of the Policy & Resources Committee.

On 20 July 2022, the Commission issued a consultation paper on the fee rates and administrative penalties to apply from 1 January 2023, which contained the following proposals:

• an overall proposed increase in fees of 9%;

• application and annual fees in respect of our increased responsibilities for firms licensed under the Lending, Credit and Finance legislative framework;

• fees for consent requests to incorporate a non-regulated Protected Cell Company or Incorporated Cell Company;

• fast track fees for additional elements to open-ended fast track funds;

• updates to the returns in scope of late filing penalties; and

• the creation of an explicit administrative penalty regime for returns submitted to the Commission that are materially inaccurate.

   

The consultation period ran for eight weeks, until 14 September 2022 and the Commission’s response to the feedback received as part of the consultation is available on the website, or in the GAT website "Members' Area".

The Commission decided to proceed with a lower fee increase of 8%, rather than the 9% on which it had consulted because of the success which it has had over the past few months in recovering more of enforcement costs through the collection of the fines made under the enhanced fining powers granted to it by the States in 2017.

The fact that they have been able, over the last twelve months, to recover more enforcement costs through fines, means that vast majority of firms which work hard to comply with the Bailiwick’s laws do not need to have their fees increased so much. De facto, they are receiving a rebate as a result of the Commission’s success collecting recent enforcement fines.

Cancelled Sustainable Finance Week GAT Luncheon

Please find a recording via the button below of a session with Alex Cooper from the Commonwealth Climate and Law Initiative who was due to present at the Members' Luncheon which was scheduled to take place on Monday 19th September and was cancelled due to the funeral of Her Majesty Queen Elizabeth II.

Alex discusses what the risks are that climate change poses to companies and investments, and how these considerations could be applied in Guernsey with reference to the updated Code of Corporate Governance. This practical and simple outline of fiduciary duties and climate risk is hoped to be of use to members.

Should you have any questions about the content, or would like an introduction to Alex and the Commonwealth Climate and Law Initiative, please contact Stephanie Glover, Head of Strategy and Sustainable Finance at Guernsey Finance.

Guernsey Named European Domicile of the Year

Guernsey’s captive insurance sector has been crowned European Domicile of the Year at the 2022 Captive Review European Awards. The award tops off an excellent year for Guernsey’s captive sector, which this year marked 100 years since the first captive company was established.

The European Captive Review Awards recognise the top providers and professionals of captive insurance products and services in the captive insurance market and celebrate innovators, creative minds and customer service professionals who have outperformed their competitors and demonstrated the highest levels of excellence over the past 12 months.

Collecting the award at a gala evening in Luxembourg, Malcolm Cutts-Watson of Cutts-Watson Consulting, said:

“Coming on the back of celebrating the centennial of the first captive in Guernsey, this award reinforces the island’s success as the preferred captive domicile. Accepting the award on behalf of the whole Guernsey captive community in front of my peers was an honour and recognition that the island’s captive offering remains relevant and popular.”

Guernsey International Insurance Association Chair Mark Elliott added: “Captives are the bedrock of the insurance sector on the Island and this award is a fantastic endorsement and reflects the hard work and innovation from everybody involved in the local sector.”

EVENTS

Members are warmly invited to the next GAT Luncheon taking place on Tuesday 6th December at 12.30pm in the Conservatory at Moores Hotel.

Natasha Kapp, partner in Carey Olsen's trusts and private wealth group, will present an informative talk on The UK's Register of Overseas Entities and what is vital for Trustees to take into consideration to avoid sanctions and/or fines due to incorrect applications.

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 final STEP Lunchtime Lecture of the year is taking place on Monday 12th December, presented by Sarah Brehaut and Helena Lavin of Walkers.

Sarh and Helena will guide you through the Supreme Court's decision in BTI 2014 LLC v Sequana SA and others which held that creditor duty is firmly established under English Law.

With an amusing analogy to the Three Little Pigs, they will consider when the duty arises and what it entails to round off this season's STEP talks with a light-hearted but informative session.

A selection of December and January Courses through the GTA

Minute Taking Masterclass 
This course aims to look at how you can prepare in advance for meetings, develop confidence during meetings and use information gathered to prepare a set of minutes. 

Cost: £195
Date: 8 December 2022
Venue: GTA University Centre
Times: 09:00 to 12:30
Further details and registration here.

STEP Advanced Certificate in UK Tax for International Clients

The course deals with what a private client expert needs to know to understand the impact of UK Tax on three particular client groups: a non-UK domiciled UK resident individual; trustees, settlors and beneficiaries of a non-UK resident trust, and participators in a non-UK holding company. 

Cost: £845
Start Date:  Enrol by 16 January 2023
Delivery: Online
Times: 4 months
Further details and registration here.

Demystifying Finance
This comprehensive course has been designed to provide those working in management from a non-accountancy background with all of the tools they will need to master the essentials of company accounting and bookkeeping. 

Cost: £553.50
Dates: 19 & 26 January and 2 February 2023
Venue: GTA University Centre

Times: 09:00-13:00 (3 days)
Further details and registration here.

Introductory Workshop: How to Recharge Your Health Battery

During this introductory workshop, experts will combine their expertise to discuss 4 vital interconnected pillars of health; breath work, movement, light exposure and connecting with nature.

Cost: FREE
Date: 20 January 2023

Venue: GTA University Centre
Times: 12:30-13:30
Further details and registration here.

STEP Certificate in International Trust Management

This qualification covers the most up-to-date developments in the industry, introducing you to the fundamentals of international trusts, trust operations and requirements in a global and local environment.

Cost: £1,575
Start Date: Enrol by 27 January 2023
Delivery: Online
Times: 6 months
Further details and registration here.

Introduction to Trust Law and Administration

This course will provide you with an overview of the Guernsey trust law and its application to trust administration. Although the theory will be covered the main emphasis will be on the practical application within the workplace.

Cost: £295
Date: 31 January 2023

Venue: GTA University Centre
Times: 09:30-16:00
Further details and registration here.

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

SPONSOR ARTICLES

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This month, Ruffer Investment Manager Jasmine Yeo looks at the opportunity at our fingertips. Read the article by clicking the button below.

Please contact Rachel Holdsworth if you have any questions.

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