by Paul Bannier | Sep 27, 2016 | News
Figures released recently by the Guernsey Financial Services Commission show that Guernsey funds performed strongly in the first half of 2016, despite notable volatility in some markets in the first couple of months of the year. Open ended funds saw a total NAV increase of approximately 6.6% in Sterling terms taking the total net asset value of funds authorised and registered on the Island to over GBP 41 bn. Closed ended funds saw an even more impressive 9 % increase with a total reportable NAV of GBP 153 bn at mid year end. Whilst acknowledging the favourable impact of exchange rates on the numbers, the statistics indicate that Guernsey continues to prove attractive to promoters looking to launch new investment vehicles on the Island – and in some cases have management or administration provided by specialist firms on-Island although the funds themselves may be domiciled elsewhere. During the first six months of 2016, 42 new open ended funds (cells of umbrella structures) were launched although overall, the total number of authorised and registered schemes was largely unchanged. The position was similar in the closed ended sector – possibly due to the fact that although new funds continue to be launched, a number of private equity funds established in the mid-2000s are reaching the end of their fixed...
by Paul Bannier | May 3, 2016 | News
On 27th April 2016 the Cayman Islands passed legislation introducing a Limited Liability Company regime. These hybrid vehicles are corporate bodies with separate legal personality which offer members a high level of flexibility in the management and operation of the LLC. As with US –style LLC’s, a Cayman LLC enables each member to have a capital account and for the profits and losses to be allocated and distributed to members as those members may agree amongst themselves in the LLC agreement. The new vehicles, which complement the existing company and limited partnership regimes, are expected to be popular particularly for hedge funds and private equity structures. For further information please contact...
by Paul Bannier | Apr 14, 2016 | News
The following article by Sara Bourne, Head of Corporate at the Carey Group and Chair of ICSA’s Guernsey Branch is reproduced courtesy of the Guernsey Press. Good Governance key to Guernsey’s international standing “There is increasing recognition of the vital role that corporate governance plays in keeping the economy, and the businesses that underpin it, in robust health. However as the environment within which businesses operate becomes ever more complex, corporate governance arrangements are increasingly being put to the test. Stripped back to its simplest sense, corporate governance is about having the right people, processes and structures in place to achieve an organisation’s objectives efficiently and effectively. It is not simply a box-ticking exercise. Done well, it means that businesses can ensure sustainability without stifling creativity. Contemporary governance challenges include the fight against cyber crime, the management of intellectual property, board-level responsibilities for the development of strategy, succession planning and the embedding of socially responsible practice. All have an impact on a company’s reputation. With reputation one of the most powerful drivers of business success and trust and transparency crucial to long term success, implementing and maintaining a culture of trust and transparency is key. This is where governance professionals who steer boards and businesses in the right direction fulfil a vital role. Improving business conduct through the implementation of good governance is a key way of managing potentially destructive reputational risks. With offshore jurisdictions vilified by politicians in the ongoing debate over tax avoidance and the regulation of financial services stricter than it has ever been, corporate governance and the professionals who manage it are under the spotlight...
by Paul Bannier | Apr 8, 2016 | News
Chief Minister writes to Prime Minister As the fallout from the leakage of the “Panama Papers” rumbles on, Guernsey’s Chief Minister has recently written to the UK Prime Minister, David Cameron pointing out that Guernsey has demonstrated its “active and practical commitment” to the international anti-corruption agenda. The letter points out to the Prime Minister that Guernsey was one of the first financial centres in the world to regulate its fiduciary and corporate services providers, and that the Island has worked in a “timely and effective” manner to comply with global standards. A recent evaluation report by the Council of Europe’s monitoring group Moneyval, showed that Guernsey has in place a range of measures to facilitate various forms of international cooperation and plays host to authorities and financial institutions that are highly competent, knowledgeable and aware of their obligations. The move by the Chief Minister appears to be in line with that being taken by several other Crown dependencies and British overseas territories to raise awareness of the factual position in relation to transparency and international cooperation and to counter criticism of these jurisdictions by uninformed...
by Paul Bannier | Jan 29, 2016 | News
On 26th January 2016 the regulations providing for the automatic exchange of information in relation to tax – otherwise known as the Common Reporting Standard on Automatic Exchange of Financial Account Information – were laid before the meeting of the States of Guernsey and are thus deemed to have come into effect on 1st December 2015. As is the case with those other jurisdictions which have signed up to this OECD – developed framework, the CRS regulations require financial institutions who are subject to the regulations, to implement due diligence procedures in respect of financial accounts which they maintain. These procedures are required in order to ensure that the financial institutions are able to identify and report certain information to the Tax Authority in Guernsey thus enabling the Tax Authority to forward the information to the appropriate overseas tax authorities. The first exchange of information takes place in 2017 and relates specifically to 2016 data. A copy of the regulations together with draft Guidance Notes and the OECD’s implementation book, are available on the government’s website, www.gov.gg, or from Icorserv...
by Paul Bannier | Jan 26, 2016 | News
According to statistics recently published by the Cayman Islands Monetary Authority, the total number of Mutual Funds in Cayman fell slightly in the fourth quarter of 2015 relative to the numbers recorded in the mid half of the year – although at 10,940, the total number remains higher than that reported at the end of the first quarter. The number of Administered and Licensed funds was broadly constant throughout the year with the reduction seen in the number of Registered and Master funds. Speaking at a Fund Forum event in Cayman at the end of last year, Cindy Scotland, the Managing Director of CIMA commented that the industry remained strong and is expecting continued growth. Full details can be found on CIMA’s website;...
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