A welcome return to STEP Canada to attend the 21st National Conference

Canada student winnersIt was an absolute pleasure to be back in Toronto, Canada for the 21st National Conference, the STEP Canada Board meeting and AGM. I had visited in February, early in my tenure, given the importance of the region to STEP overall and to learn more about how we operate in different parts of the world.

I was joined on this trip by Simon Morgan TEP, our worldwide Chair and Jim Walkinshaw, COO Finance and HR, from the London office.

We met the Canada Board on the first day, and then attended the AGM and Board meeting. It was great to meet the incoming and outgoing board members and get the opportunity to update the Canada Board on what we are working on in the worldwide office to further the vision and mission of the society.

In the evening we moved on to a reception which included Simon Morgan and STEP Vice Chair Nancy Golding TEP presenting Prof Albert Oosterhoff with Honorary Membership of STEP. Prof Oosterhoff became the second Canadian to receive such an honour and is one of only 11 worldwide.

The next morning saw the conference open and 784 delegates converge on the Metro Toronto Conference Centre. After the formalities, we were into the first session of the day with Richard Hay TEP leading us through a masterclass thought-leader piece on the effects of globalisation on the tax collection of nation states. The question of whether we could be headed toward a central taxing authority that imposes globally-coordinated taxation may not be so far-fetched; how would we have reacted to the current disclosure rules ten or 15 years ago?

Alongside the many important technical sessions the two other stand-out pieces for me (as a non-practitioner) were the lunchtime sessions. On Thursday we listened to S Jay Olshansky from the University of Illinois looking at ageing and longevity; some of the ‘markers’ for that were surprisingly basic, eg the younger you look, the older you tend to live, and what impact that should have on planning for future health and finances. On Friday we had the equally thought-provoking Caron Croland Yanis sharing her experiences on the intersection of family values, sustainable governance and technical compliance in philanthropy.

Before heading off to dinner we were delighted to attend the Student Awards ceremony where the latest winners were recognised (pictured). I always enjoy these type of events and getting to meet the brightest of the new professionals coming through, and I’m confident that we saw some of the future leaders of the profession. Dinner that evening had to be the networking and social highlight of the two days – held at Arcadian Court, an historic and impressive art deco event space.

For me the barometer of a conference’s success is how many people are still actively engaged at the end of the event – and STEP Canada certainly set the bar high by having a varied and well thought-through programme that kept most of the delegates through to the final sessions.

It certainly met our mission statements of promoting high professional standards, educating professionals and connecting advisors. As ever with these events, the eventual success sits deep in the planning, and I saw first-hand during my visit back in February how detailed, focused and accountable that planning was. Based on that, the event was always going to a success!

Altogether it was a very informative and enjoyable few days. I genuinely learned lots, I have seen content and formats that we can use, and/ or adapt for the Global Congress in Dublin next year, and the networking was outstanding.

Huge congratulations go out to the whole STEP Canada conference programme committee led by Corina Weigl TEP (Chair), Brian Cohen TEP and Richard Niedermayer TEP (Co Deputy Chairs) and the fabulous staff team led by Michael Dodick and Janis Armstrong. What a formidable force to have behind the biggest conference event in the STEP calendar.

It’s always interesting to see what other conferences are on in a major venue. As I arrived in Toronto the hotel and centre was full of body builders at the 2019 Toronto Pro Supershow and EXPO, and as we left the cannabis industry had moved in for the 2019 Toronto Cannabis EXPO – it’s a booming market after it was legalised last year…

Mark Walley is CEO of STEP

What’s happening to dormant assets?

Post Office Savings Book

The UK government has recently formed the Independent Commission on Dormant Assets which is investigating a revised scheme in order to identify new pools of dormant or unclaimed assets.

The existing scheme was formed in 2008, after the Dormant Bank and Building Society Accounts Act 2008 was passed, which deems bank and building society accounts to be dormant after a lack of customer-initiated contact for 15 years. The intention of HMRC is to locate these abandoned assets and use them to benefit good causes.

The commission is pooling its resources from various finance and industry experts and intends to report its final analysis to the prime minster and the cabinet office by the end of 2016. It will analyse the following:

  1. Which dormant assets can be brought into an expanded dormant asset scheme, and how they can be identified by industry
  2. The projected size of the funding pot this could produce for good causes
  3. Whether with the potential increase of dormant assets being released by industry the current system is able to manage the burden; and
  4. Whether any new legislation should include a requirement for improved transparency from industry on disclosing the level of assets within their sector.

The government estimates indicate there could be more than GBP1 billion of untapped sources of dormant assets which may include stocks, shares, bonds and pensions. Since the Dormant Assets Scheme was initiated in 2008, approximately GBP750 million has been released from banks and building societies and most of the recipients have been charities across the UK.

The new scheme is intended to provide further momentum to pass the dormant funds onto those who really need them in the charity sector. Rob Wilson, the Minister for Civil Society states, ‘More than a billion pounds of assets, that might otherwise sit gathering dust, will go into funding for charities that make a real difference to people’s lives across the country. To build an even more caring and compassionate country we need to transform dormant resources and give the funds to those who need it.’

It is easy to understand how these assets are overlooked in the first instance, considering how common it is for people to manage their assets digitally (see below). Family members may be completely unaware of the existence of bank accounts or stocks or shares, let alone having access to the data and passwords.

Other possible scenarios might be moving home and not redirecting the post, changing names after marriage, mergers between banks and building societies or a general lack of paperwork. These accounts may be unintentionally abandoned for 15 years and later released to an obliging local charity, to the detriment of the unknowing beneficiaries.

However, there are common scenarios which do not give rise to dormant assets such as intestate estates. The rules of intestacy are activated when someone dies without making a will and they determine which surviving relatives will inherit the estate. In the event that there are no surviving relatives, after investigation, then the estate automatically passes to the Crown and will not be subject to the dormant asset rules.

In the event of a testate estate, and a missing beneficiary, the process becomes more arduous due to the fact that personal representatives and trustees (in the case of trusts) have clear fiduciary responsibilities to carry out the deceased’s wishes for their estate or trust. They are under a duty to protect the interest of the beneficiaries. Therefore, if adequate measures have been taken to locate a beneficiary unsuccessfully, it is deemed reasonable to assume they have died, and distribute the funds to other beneficiaries in accordance with the will.

The personal representative or trustee may seek an indemnity from the other beneficiaries to cover the funds, should the missing beneficiaries reappear. Alternatively they may seek a similar indemnity from an insurance company. Where significant funds are involved they may instead seek a ‘Benjamin Order’ from the court, allowing the trustees to assume that the missing beneficiary is dead. In any event, the funds will be distributed, rather than being held awaiting any contact from the missing person. Therefore, the assets will not linger, or be overlooked, and the estate can be promptly wound up, unless they have passed completely under the radar in the first instance.

  • STEP has recently set up a Digital Assets Working Group to address the emerging issues for practitioners in this field. Its purpose is to educate members and providing guidance and resources; and to campaign for greater clarity and uniformity in international laws and the T&Cs of internet service providers.

 

Emily Deane TEP is Technical Counsel at STEP