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 is on Thursday 25th November, with Annabel Mackenzie and Rachel Holdsworth from our sponsors Ruffer LLP presenting "Making Sense of the Inflationary Environment." Further information and booking is available below.

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

Enjoy your October 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

Population and Immigration Review gathers pace

Work on one of government's top priorities for this States term is progressing with the first meeting of the cross-Committee steering group reviewing the island's population and immigration policy.

Terms of Reference for the Population and Immigration Policy Review were published on 15th October and can be viewed via the button below.  They outline the scope and objectives for the review - identified as a priority by the States during the Government Work Plan debate.

The review's purpose is to ensure Guernsey has a population management regime that can respond quickly to the island's changing economic, social and environmental demands and support recovery.

Committee for Home Affairs introduces further changes to Population Management policies in support of businesses

The Committee for Home Affairs has made additional changes to Population Management policies as it further demonstrates its commitment to support businesses.

These changes include the extension, until the end of 2022, of two temporary policies designed to help businesses retain staff who would otherwise have been due to leave the island as their employment permit expired.

• The Employment Permit Extension Policy allows all roles that are included in the Employment Permit Policy (all jobs that would currently receive a short-term employment permit or medium-term employment permit) to be extended from the previous maximum length of five years to seven years,
• The current three-month break exemption, allowing individuals on a 9/3 pattern and approaching their three-month break to be allowed to remain in Guernsey, without being deemed to have broken their residency pattern.

In addition to extending these two policy changes until the end of 2022, which are aimed at supporting employers to retain good staff who want to remain in the island, the Committee has also introduced a temporary fee exemption for new arrivals coming to the island to work on a short-term employment permit. This will be in place until 31st December 2022.

Digital Framework published to provide strategic direction for digital policy

The Digital Framework 2021-2025 has been published by Digital Guernsey, providing the strategic direction and practical coordination for the Bailiwick's digital policy for the current political term across government, industry and the community.

The Framework outlines three strategic goals:

• Enabling Infrastructure
• Developing Digital Skills & Pathways
• Innovation, Transformation & Entrepreneurial Growth

Under these three goals are nine 'action areas', within which are outcomes and tangible next steps. Over the coming months these will be further developed, in consultation with internal and external stakeholders.

OECD Inclusive Framework meeting - Guernsey remains supportive of establishing a global solution

The OECD has been working to establish a global solution to reform the international corporate tax framework, impacting how large multinational enterprises are taxed around the world.

That framework is based on two broad work streams, Pillar 1 relating to the proposal for partial re-allocation of taxing rights and Pillar 2 which proposes to introduce an agreement that large multinational enterprises pay a minimum effective rate of tax on their profits. These proposals seek to address issues that are linked to the increasing globalisation and digitalisation of the economy.

2022 Budget: Economy outperforms COVID forecasts but challenges remain

On Tuesday 5th October the Policy & Resources Committee published the 2022 Budget, following an extraordinary year which has continued to see the pandemic affect many aspects of Island life and the economy.

However, the latest figures indicate that Guernsey's economy has weathered the predicted impacts, and quickly set about a very strong recovery. Forecasts last year estimated a contraction in Gross Value Added (GVA) of 6% to 8% in 2020.  

But the expectation now is that the contraction was less than 5%, and 2021 is forecast to see all of that recovered.  Other indicators also point to a strong economy with the housing market continuing to see very high demand and unemployment currently at pre-COVID levels of less than 2%.

Revised rules, codes and guidance

On Wednesday 6th October the Commission published the finalised draft revised rules, codes and guidance that accompany the introduction of the revised principal laws dealing with the regulation of financial services business in the Bailiwick as part of the Commission’s Revision of Laws project.

The new rules, codes and guidance will come into effect on Monday 1 November 2021, on the same day as the new and amended regulatory laws.

The new and amended regulatory laws will help to ensure that the Bailiwick is able to demonstrate its compliance with international standards helping to cement, maintain and improve the Bailiwick’s access to relevant international markets. The new and amended laws also aim to eliminate inconsistencies between the regulatory laws which should help to create efficiencies for industry and the Commission.

The Commission's consultation papers are available HERE. These detail the old version of the rules, codes or guidance and their replacement along with flagging any key amendments.

Private wealth can power the world towards a more sustainable future

"The Power of Capital" saw discussions on how to unlock private capital to help the world meets its net-zero targets. The afternoon examined the new taxonomy of ‘purpose led investing’ and also discussed some of the perceived barriers to adopting an ESG investment strategy.

The panel explored the intersection between sustainable investing and philanthropy. Partner and Head of Philanthropy at C. Hoare & Co, Rennie Hoare, emphasized the role that private wealth can play in the transition to net zero and the urgency of the situation.

“Being proactive with clients now is critical; it is happening but not at the pace we need,” he said. “Covid has driven an awareness of how interconnected our world is, and more of a willingness to invest for good. But even forward-thinking impact investors are facing slow progress. We need to re-start the progress that had been made but was diminished through the pandemic.”

The Guernsey Green Fund was cited as an example of the progressive approach needed to make an impact on the world’s environmental challenges. The jurisdiction’s advisers were also described as ‘motivated’ and having ‘proactive and confident conversations with their clients’ about the transition of private capital into impact funds or ESG investment strategies.

EVENTS

GAT Members' Luncheon - Thursday 25th November 

A bonus GAT Luncheon will take place on Thursday 25th November in the conservatory at Moores Hotel.

Our guest speakers will be Annabel Mackenzie and Rachel Holdsworth from our sponsors Ruffer LLP, who will be presenting "Making Sense of the Inflationary Environment." 

Annabel and Rachel will provide an update on the current extraordinary market backdrop and the outlook for investments in a more inflationary world. They will address how to respond in your clients’ portfolios and the challenge posed by what to do with cash.

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

The 2021/2022 series of STEP Lunchtime Lectures continues with the fifth event, presented by Catherine Moore of Ogier.

Catherine will present "For better or worse: considerations surrounding marriage or divorce in a private client and trust context" and will cover the following topics:

• The effect of marriage and divorce on Guernsey law Wills
• Trust structuring and drafting considerations: from pre-nups to beneficial classes to divorcing beneficiaries
• Guernsey firewall legislation
• Pensions and divorce

The sixth STEP lunchtime lecture on Monday 15th November will be presented by Helen Cox of Fladgate LLP.

Helen will talk about "Offshore family investment companies: planning, pitfalls and opportunities" and will cover the following topics:

• How family investment companies (FICs) are structured
• The difference between onshore and offshore FICs
• How offshore FICs compare to offshore trusts as a succession planning tool
• Case study highlighting tax and practical considerations
• An update on HMRC’s stance on FICs
• When to recommend offshore FICs to your clients

CLIMATE CHANGE PENSION INVESTMENT: WHO CARES?

THURSDAY 4TH NOVEMBER 2021 
Les Cotils, 12.30pm - 1.45pm

Mark Colton from BWCI will discuss the impact of climate change on pension investments. A sandwich lunch will be provided.

If you would like to reserve a space for the meeting, please email Damian Wallen, the GAPP Secretary.

DATA PROTECTION DO’S AND DON’TS WITH A FOCUS ON PENSION BUSINESS

FRIDAY 26TH NOVEMBER 2021
Les Cotils, 12.30pm - 1.45pm

The Office of the Data Protection Authority will discuss data protection do's and don'ts with a focus on pension business.  The ODPA would welcome any up front questions to help focus the presentation. A sandwich lunch will be provided.

If you would like to reserve a space for the meeting (or submit up front questions), please email Damian Wallen, the GAPP Secretary.

November courses from the GTA

Developing and Communicating your Value Proposition
Your value proposition is what gives you your competitive advantage.  It tells your clients why they would want to buy from, or work with, your company instead of a competitor.  The development of a value proposition is a vital part of a company’s business strategy and now, post pandemic, it is the perfect time to reinvigorate your value proposition, get back on track and strengthen your offering for the future.  Join executive coach Chris Atkinson on this half day course to see what you can learn.

Cost: £250
Enrol by: 2 November 2021
Venue: GTA University Centre
Times: 09:00 to 12:00

Further details and registration here.

Getting it “Write”
This half day course aims to provide the practical tools to ensure that written communications are of a high standard.  Delegates will learn what is involved in accurate and clear writing, including a focus on common errors in spelling and grammar, and the importance of plain English.

Cost: £195
Enrol by: 9 November 2021
Venue: GTA University Centre
Times: 09:00 to 12:30

Further details and registration here.

Company Law and Administration – Intermediate Course
This full day course is designed for those wishing to build on basic knowledge of Guernsey company law and administration by introducing some more complicated concepts and giving guidance in respect of the requirements of other offshore jurisdictions.  This course is an ideal follow on for those who have attended the popular Introduction to Company Law and Administration who wish to add to their basic understanding.

Cost: £295
Dates: 11 November 2021
Venue: GTA University Centre
Times: 09:30 to 16:00

Further details and registration here.

STEP Certificate in International Trust Management
The STEP Certificate in International Trust Management offers candidates a detailed insight into the creation and administration of trusts in an international context and increases knowledge of the practical and academic issues arising in the industry.  This popular certificate remains the flagship qualification for those looking to advance their career in the international trust industry.

Cost: £1,575
Begins: 19 November 2021
Venue: Online Learning and Examination
Length: 4 months

Further details and registration here.

Three Brain Leadership: How to lead with courage, enhance connection and develop wisdom
This one day course with Andre Duquemin explores the power of modern neuroscience. Neuroscience provides an increasingly powerful view into how the mind and body can work together and its importance in the way we teach leadership skills.  Modern neuroscience shares the load between three main nervous centres – the gut, the heart and the head, in effect not one brain but three.  Three Brain Training will help delegates integrate this understanding and allow them to develop key skills in building trust, enhancing connection and developing grit, focus and motivation.

Cost: £325
Dates: 23 November 2021
Venue: GTA University Centre
Times: 09:00 to 17:00

Further details and registration here.

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

SPONSOR ARTICLES

Cyber security and resiliency - are you aware of the risks?

The Pandemic has accelerated businesses move to digital business models often moving vast volumes of ‘big data’ to the Cloud and embracing hybrid-working models in order to operate more efficiently and competitively.  The speed of the digital transformation has opened up many businesses to new cyber security risks due to the complexity of technology that has been implemented, the lack of knowledge and awareness particularly where reliance is placed upon Cloud Services Providers (“CSPs”).

Our Head of Operations and Cyber Security, Sarah Sarre, is well known to our clients for assisting them develop effective policies, procedures & controls in order to meet their regulatory obligations.

Read Sarah’s insightful piece on cyber security and resiliency by clicking on the button below and get in touch if you require assistance in developing and implementing your cyber security programme.

Equities: a false sense of security

For the current generation of investors, equity markets have been remarkably happy hunting grounds. There have been crashes, bangs and wallops in recent years but, so far, central banks have ensured any pain was short-lived.

As interest rates have fallen, investors have chased stocks up the page and global equity markets are now more highly valued than ever.

Click the button below to read why these halcyon days may be coming to an end.

Please contact Rachel Holdsworth if you have any questions.

Carey Olsen confirmed as the leading Channel Islands law firm in Chambers UK rankings

Carey Olsen leads all Channel Islands law firms after securing eight Band One rankings in the 2022 edition of Chambers UK – two more than its nearest competitor.

The highly respected legal directory, which ranks law firms and their lawyers based purely on client feedback, has awarded Carey Olsen four Band One rankings in both Guernsey and Jersey. In addition, 45 lawyers from across the firm's Channel Islands and London offices have been individually recognised.

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