A clarifying statement agreed by the UK's HM Treasury and Ministry of
Justice about Guernsey's position within the OECD has emphasised
the Island's attractiveness as a fund domicile.
Representatives of Guernsey's government, the regulator and
industry bodies have been working together to inform EU and EEA
authorities of Guernsey's position in the OECD.As a result, on
23 June 2015 the States of Guernsey issued this statement agreed
with the UK authorities: "The OECD Convention was extended to
Guernsey on 20 July 1990.This means that the OECD Convention
applies to Guernsey and it is part of UK's membership of the
OECD. OECD decisions and recommendations apply to the same extent
to Guernsey as they do to the UK."
The announcement and clarification has been made as whether or
not a fund's domicile is in the OECD has become increasingly
important to the investment funds sector in order to meet the
requirements of certain market regulators. For example, in some
jurisdictions there are prohibitions on the marketing of funds
which do not originate from an OECD country.
Guernsey is within the OECD but this fact has not always been
apparent as Guernsey is included through the UK's membership of
the OECD. This clarification helps reinforce Guernsey's
position as an internationally compliant and reputable
jurisdiction, and strengthens the attractiveness of Guernsey as a
Guernsey Finance Chief Executive Dominic Wheatley said:
"The statement once again emphasises our quality and standing
in the international funds environment. Those working with or in
Guernsey's funds industry have always known that Guernsey is
within the OECD, but for those less familiar with the Island that
has not necessarily been the case. This statement removes any doubt
about our position and reinforces the fact that Guernsey is a
leading international finance centre."
Investment Fund Association (GIFA) Chairman Andrew Whittaker
said: "As the OECD, G20 and European Commission continue to
work on the implementation of tax transparency measures to tackle
corporate tax avoidance, investment managers and investors are
becoming increasingly concerned with the tax status of their
funds' domiciles. The clarification of Guernsey's position
in the OECD is good news for Guernsey."
Another GIFA spokesperson, Paul Wilkes, added: "This
membership represents a great opportunity and advantage for
Guernsey funds over some of its offshore rivals. The Island's
unique position as an offshore domicile with OECD membership
provides comfort to our clients and their investors. This is
another example of Guernsey's commitment to tax transparency
and best international practice."
Many people are baffled by trusts, the purpose of which they don't fully comprehend. Some even regard them with suspicion, as tools of of opaque tax evasion strategies of a type favoured by wealthy individuals.
We were recently instructed by a Bank in relation to a regulatory matter. The Bank had made a suspicious activity report to the Financial Investigation Unit ("FIU") due to their concerns about the potential source of funds in an account.
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