From new airline routes launching to another successful Funds Forum in London, it’s been another busy month for Guernsey’s finance sector. Here is our monthly newsletter with all of the top stories from the industry and our member organisations.
Don’t forget to follow @GIBAGuernsey on Twitter for updates and news throughout the month.
From leadership changes at GIBA to cybersecurity under the spotlight, it’s been a busy month for Guernsey’s finance sector; here is our monthly newsletter with all of the top stories from the industry and our member organisations.
Don’t forget to follow @GIBAGuernsey on Twitter for updates and news throughout the month.
GIBA NEWS
GIBA Announces Leadership Changes
GIBA has appointed a new Chair and Deputy Chair; Tony Mancini takes up the position of Chair, while Paul Hodgson has been appointed as Deputy Chair.
Tony, a Tax Partner at accountancy firm KPMG, has previously sat on the GIBA Executive Committee as Deputy Chair. He has also served on the Guernsey International Fund Association (GIFA) Executive Committee and been a member of the Guernsey Society of Chartered and Certified Accountants (GSCCA) tax sub-committee.
Paul, Managing Director of Butterfield Trust (Guernsey) Limited, has also previously sat on the GIBA Executive Committee and is the current Chairman of the Guernsey Associations of Trustees (GAT). An experienced finance professional, Paul is also a Non-Executive Director of the Guernsey Training Agency (GTA) and was previously a non-States member of Guernsey’s Public Accounts Committee.
David Oxburgh now stands down after two years in the role of GIBA Chair and he will remain on the Council. GIBA would like to thank David for the tremendous work he has done for the finance industry during his time as Chair.
GIBA Issues Joint Statement on Runway Extension
GIBA, the IoD and Chamber of Commerce have issued a statement calling on the island’s Deputies to support a policy letter lodged by the Policy & Resources Committee authorising funding for a full cost-benefit analysis of the two runway extension options recommended in the PwC report on air and sea links.
GIBA Discusses Why Collaboration is Key to Island’s Finance Industry Success
Guernsey’s finance industry is built on a bedrock of collaboration. The close working relationships between the various sector associations, industry bodies, the government and the regulator support the success of the many firms based in the island.
Read more in our article, which originally appeared in the Guernsey Chamber of Commerce’s Contact magazine.
Minutes and Technical Update
March GIBA Council minutes are now online in the members’ section of our website. You can find them here.
BUSINESS NEWS
Guernsey Introduces World’s First ILS Hybrid Vehicle
The world’s first hybrid vehicle for use in the insurance-linked securities (ILS) sector will lead to increased simplicity and efficiency for ILS fund managers, according to Carey Olsen Partner Christopher Anderson, who created the concept with the support of the GFSC.
The new launch means ILS managers will no longer have to ‘rent’ cells of protected cell or segregated account companies to act as Special Purpose Insurers (SPIs), which are often established in a different jurisdiction and operate entirely separately from the ILS manager’s fund.
GUERNSEY GREEN FUND
First London-listed Investment Company Gains Guernsey Green Fund Accreditation
In a landmark move, a first London-listed investment fund has successfully received Guernsey Green Fund accreditation.
Bluefield Solar Income Fund has invested in more than 80 UK-based solar assets, one of the largest diversified portfolios of solar assets in the UK, targeting long-life solar energy infrastructure expected to generate stable renewable energy output over a 25-year asset life.
Read more
CIISF Hosts Inaugural Guernsey Cyber Security Conference
The Channel Islands Information Security Forum (CIISF) held its inaugural Annual Guernsey Cyber Security Conference this month. A host of top cyber-security experts presented to local professionals from all business sectors.
Organiser Arthur Mainja, Cyber & Digital Advisory at KPMG, said: “It was great to see such a large turnout, which was a testament to the community’s interest in and regard for security. We believe the conference proved to be a valuable platform for education, awareness and collaboration for our security community in the Channel Islands.”
Butterfield Buys ABN AMRO
Butterfield Guernsey has announced it is buying the Channel Islands banking business branch of the Dutch-owned ABN AMRO, in a deal worth around £161million.
An agreement has been reached but the transaction should be finalised during the third quarter of 2019, when the ABN AMRO Channel Islands business and employees will all be integrated into the existing Butterfield Guernsey operations and operate under the Butterfield name.
Agilisys Announced as Preferred Bidder to Deliver Future Digital Services Programme
A two-year procurement process has reached a key milestone with Agilisys Limited, a leading UK-based technology and transformation company, being appointed as the preferred bidder for the digital transformation and future delivery of the States’ IT services.
As the proposed strategic partner for the States’ Future Digital Services Programme, Agilisys will help to deliver a dramatic improvement in technology, giving the community better and easier access to public services while enabling efficiencies and long-term cost savings. Furthermore, the partnership will see a significant investment in Guernsey’s digital economy.
FINANCE IN THE COMMUNITY
The charitable work done by Guernsey’s finance sector continues to support many individuals, groups and services in the community. Follow our Twitter feed and the hashtag #GsyFinance4Community, here are just a few examples:
Chicken Run Takes Flight for PPBF
Running group distance.gg organised a new fun run for the Easter weekend. The Bedell Cristin Chicken Run was a 5km fun run open to athletes of all ages and abilities, beginning and ending at Pembroke.
Participants were given a chicken hat to wear during the run to celebrate the Easter weekend, with profits being donated to the Priaulx Premature Baby Foundation.
Saffery Champness Gives Helping Hand to Bright Beginnings Children’s Centre
A team of volunteers from Saffery Champness has revamped the baby and toddler gardens at Bright Beginnings Children’s Centre in preparation for the summer months.
The clear-up, organised by Audit Manager Lindsey Dean and Children’s Centre Manager at Bright Beginnings, Teresa Bott, saw a team of 10 volunteers from the audit and tax department with their family and friends assist with planting flowers and herbs, weeding, pruning, painting and giving the garden area a general tidy up.
30/30 Cycling Challenge is Back
The annual 30-day cycling challenge in aid of Les Bourgs Hospice is back, with a number of riders set to take to the roads over the coming weeks.
Organised by business partners Ian Brown and Paul Brehaut, the event has raised almost £700,000 for the charity-funded hospice over the last 12 years.
If you have a corporate team taking part, do tweet and tag @GIBAgsy so we can share your involvement.
MAY DIARY DATES
STEP Conference Early Bird Rates
STEP Guernsey Branch invites attendees to the annual STEP Conference at Beau Sejour on 20 June 2019.
STEP Guernsey’s flagship event, sponsored by Carey Olsen, allows delegates to meet, network and gain important knowledge and technical updates from outstanding speakers in the industry.
Book on or before 20 May 2019 to benefit from the following preferential early-bird rates:
Guernsey Funds Forum
Thursday 16th May – London
12:00pm to 5:00pm
The 10th edition of the Guernsey Funds Forum, titled ‘Restart’, will explore the narrative for the future and how Guernsey can be the ideal location for investment funds in 2020 and beyond.
23rd April 2019 – GIBA responds in a joint statement to Policy & Resources’ latest airlinks proposition.
The Guernsey International Business Association (GIBA) has appointed a new Chair and Deputy Chair.
Tony Mancini, a Tax Partner at accountancy firm KPMG, takes up the position of Chair. Tony has previously sat on the GIBA Executive Committee as Deputy Chairman. He has also served on the Guernsey International Fund Association (GIFA) Executive Committee and been a member of the Guernsey Society of Chartered and Certified Accountants (GSCCA) tax sub-committee.
Tony has recently worked with the States of Guernsey on their work on the island tax regime in relation to the EU Code of Conduct Group’s economic substance requirements. Over the years he has assisted the States with the formulation of tax policy and administration in a number of areas. He is also a member of the British Venture Capital Association (BVCA) Tax Committee in the UK.
Paul Hodgson, the Managing Director of Butterfield Trust (Guernsey) Limited, takes up the position of Deputy Chair, having also previously sat on the GIBA Executive Committee. Paul is also the current Chairman of the Guernsey Associations of Trustees (GAT).
An experienced finance professional, Paul is also a Non-Executive Director of the Guernsey Training Agency (GTA) and was previously a Non-States Member of Guernsey’s Public Accounts Committee. He is a Chartered Accountant, Fellow of the Chartered Institute for Securities and Investment and a Member of STEP.
David Oxburgh now stands down after two years in the role of GIBA Chair and he will remain on the Council.
GIBA has a membership consisting of the associations representing all the major financial institutions and professional firms on the island and, as such, is the representative body of the financial services industry in Guernsey.
Tony Mancini says: ‘The financial services industry and the island currently face both challenges and opportunities. To meet these challenges and opportunities, it is vitally important for the different sectors and associations to work together and GIBA’s role in facilitating cooperation between the sector associations and presenting the industry view to the government is arguably more important than ever.
‘I am looking forward to supporting the industry in my new role, and on behalf of the GIBA Council, I would like to thank David Oxburgh for the tremendous work he has done in the last two years as our Chair.’
Guernsey’s finance industry is built on a bedrock of collaboration. The close working relationships between the various sector associations, industry bodies, the government and the regulator support the success of the many firms based in the island.
Much of this collaboration is done by volunteers sitting on industry association committees such as Guernsey Society of Chartered & Certified Accountants (GSCCA), Guernsey Investment Funds Association (GIFA), Guernsey Association of Trustees (GAT) and Guernsey International Insurance Association (GIIA).
The Guernsey International Business Association (GIBA) is the representative body of the island’s financial services industry and engages regularly with the government and civil servants on a diverse range of issues affecting the industry.
GIBA also collaborates with other business associations such as the Institute of Directors, and supports firms with technical updates and tools like the new PDF which shows prospective finance industry employees the advantages of working in Guernsey.
‘The level of work that goes on in the associations and their committees is significant,’ says David Oxburgh, Chair of GIBA. ‘This support structure cannot be underestimated, it is one of the many reasons that Guernsey has much to offer the global finance industry.’
The recent work on the Income Tax (Substance Requirements) (Guernsey) (Amendment) Ordinance, 2018 is typical of the collaboration seen in the island and presented the biggest challenge in over a decade to international finance centres like Guernsey.
‘Guernsey needs to comply with these standards to avoid effective “blacklisting” by the EU and OECD, which would be hugely damaging to the island’s finance industry and ultimately our economy,’ explains Antony Mancini, Vice Chair of GIBA. ‘However, in complying it is vital that, as far as possible, existing business models – which largely meet the standards in practice – can be sustained under the new standards.’
The new legislation was approved by the States of Deliberation on 28 November 2018 following extensive work by a group of industry representatives drawn from the various sectors of the finance industry, who continue to work with Guernsey’s Revenue Service on developing the island’s new economic substance law, regulations and guidance.
‘This work has drawn on the expertise of our working group to understand how affected businesses work, how the international requirements can accommodate those business models and how internationally acceptable law and guidance should be framed,’ says Mr Mancini.
The GSCCA worked closely with the substance working group and continues to play a vital role in checking that the proposed regime fits within the existing tax legislative framework and will be workable for the different industry groups. Chair of the GSCCA’s Taxation Sub- Committee Jo Huxtable says: ‘The sub-committee meets quarterly and comprises representatives from a range of local firms. Our remit is to consider local and international tax developments impacting Guernsey and to work collaboratively as a committee, and sometimes with government, to ensure that the law and published practice make sense and are business friendly.’
These new international standards apply globally and consistently. So the Crown Dependencies, with similar businesses and challenges, need to find a common framework. There is no competitive advantage to be gained from differing rules and it is important for Guernsey, Jersey and the Isle of Man to work together.
The Guernsey Investment Funds Association (GIFA) is another group that proactively supports the local industry. Christopher Jehan, Vice Chairman of the GIFA Executive Committee, explains: ‘Within GIFA we have a number of sub-committees covering education, technical issues and marketing Guernsey’s fund industry in the UK and beyond.
‘GIFA provides training events for our members which are free to attend and to which the presenters give their time freely.
‘Our technical committee responds to regulatory consultations, and may escalate actions to GIFA’s Executive Committee. We engage directly both with the regulator and with government – with civil servants and politicians – to give the issues we are raising a higher profile.
‘For example, the new AML/CFT Handbook involved meetings with senior civil servants and senior Guernsey Financial Services Commission (GFSC) representatives on the same day to highlight the industry’s view. The engagement that followed from the GFSC resulted in significant changes in some areas.
‘Our marketing committee engages with Guernsey Finance with regard to roadshows and events, however in recent years we have also teamed up with the Alternative Investment Management Association (AIMA) to put on events in London outside of the work done with Guernsey Finance. We are looking to extend this by working with other associations on events both in London and potentially further afield.’
‘There are many other examples of collaboration,’ says Mr Oxburgh. ‘The Financial Services Policy Framework was the result of the work done by the Committee for Economic Development alongside Guernsey Finance, local politicians such as Gavin St Pier and Lyndon Trott, and key civil servants and representatives from the GFSC and GIBA.
‘The States of Guernsey’s Brexit working group is yet another example of how we are able to draw upon our industry expertise, for the greater good of the island’s economy.
‘It would not be an overstatement to say that our economy, of which the bedrock is the finance sector, is greatly boosted by the many volunteer hours given so freely by many islanders.’