STEP’s Special Interest Groups under the spotlight

SIG Spotlight Sessions 2017The end of November saw STEP Special Interest Groups’ (SIGs’) annual day of conferences, the ‘Spotlight Sessions’, held at the Montcalm Hotel in London and attracting over 300 international delegates.

The day started early with a breakfast-time Philanthropy Advisors SIG session. Outgoing chair Suzanne Reisman TEP welcomed attendees and contributed to a panel discussion, which also included Keyvan Ghavami of Act On Your Future, Jacqueline Lazare TEP of Royds Withy King and Julie Wynne TEP of Froriep. A lively discussion ensued, the takeaway point being that advisors are missing a business opportunity if they do not at least raise the issue of charitable giving with their clients.

The International Client SIG session began with Joseph Field TEP of Withers Bergman LLP delivering the keynote lecture on the changing landscape for international clients, quipping that events move so fast, that if you miss the news for 15 minutes, you can get completely behind. Tony Pitcher TEP of LGL Trustees Limited moderated a discussion on tax regimes, which included contributions from Luxembourg, Cyprus, the US, the UAE, Italy and Switzerland.

Bill Ahern TEP of Ahern Lawyers, David Russell QC TEP of Outer Temple Chambers and Wendy Martin of EY – Channel Islands discussed ‘attacks on intermediaries’ and practical issues in relation to the Common Reporting Standard (CRS). Wendy said that implementing CRS was a massive challenge, and depended hugely on how you interpret the law. She asked what might happen to all the data required, and what could go wrong, before pointing out the gaping contradiction with data protection legislation that mandates privacy. David expressed his concern that regulatory requirements are making it increasingly difficult to open a bank account and many entirely legitimate people are being excluded from the banking system, and Bill noted that in a number of countries there were very good reasons for not wanting the government to know about your financial affairs, not least personal security.

The day marked the official launch event of the newest of STEP’s SIGs, the Digital Assets SIG. Leigh Sagar TEP of New Square Chambers gave an introduction to digital assets and the issues they present for estate planning and administration. Together with the panel, he presented the audience with some quite alarming scenarios which left not a few squirming in their seats. If someone has your computer password, they could empty your bank account. If you let someone else use your Facebook account, you’ve committed an offence. If a family member dies, you may not be able to read their emails, or access their accounts. If your relative left online gambling debts that needed to be paid, but you didn’t have the passwords, you would not be able to settle their estate. The panel discussed a number of ways of ensuring passwords stay secure and yet are accessible to those who need them. One of the simplest ideas was to keep a list in a sealed envelope. The session concluded with discussions on electronic signatures and wills and the important, and growing, subject of cryptocurrencies and their taxation.

This year saw the Mental Capacity SIG and the Cross-Border Estates SIG partner on connecting sessions looking at cross-border capacity. Drawing the largest attendance of all the sessions, the panels comprised speakers from 12 jurisdictions providing a round-up of existing and new laws in each, followed by an active panel discussion.

The Business Families SIG session then explored the unique considerations an advisor must consider in an advisory position to a family business wishing to sell, as opposed to non-family entities. The audience heard first-hand accounts from family business owners Ian McKernan of Molecular Products Group and Alex Scott of Sandaire, alongside experts from the advisor community.

The final session was presented by the Contentious Trusts and Estates SIG and focused on the rules against self-dealing, fair dealing, no conflicts and their exceptions, considering the rules in light of recent decisions. Their session welcomed speaker Vicki Ammundsen TEP, who had come all the way from New Zealand.

Joanna Pegum, STEP PR & Media Executive

STEP puts CRS, transparency and public registers under the SIG spotlight

SIG Spotlight Session Nov 2016STEP hosted its annual Special Interest Group (SIG) Spotlight Sessions on 14 November in London, a day comprising six conference streams. SIGs provide opportunities for members to connect and advance their focused area of practice.

I attended the International Client SIG session, which focused on the needs of practitioners serving international clients with complex planning needs. The presentation was entitled ‘Moving Out, Moving In and Moving On: Key Movements for International Clients’. STEP members John Riches, William Ahern and Dr Angelo Venardos spoke on the topical issues surrounding CRS, transparency and public registers.

The Common Reporting Standard (CRS) continues to cause confusion in some key areas, and STEP is seeking clarification on a number of points surrounding settlors, beneficiaries, protectors, what constitutes a trust, controlling persons that are entities, charitable trusts and private trust companies. William Ahern and Dr Angelo Venardos discussed how CRS is being applied in Hong Kong and Singapore, and they touched upon the inconsistencies in the legislation compared to the UK, for example, anti-avoidance legislation, which is not as comprehensive as the UK’s.

Automatic exchange of tax information on a wide basis will unleash a deluge of confidential and highly sensitive personal financial information for transmission around the world. Differing jurisdictions may have differing issues to consider under these circumstances. Some jurisdictions may also need to consider if their data-protection laws are consistent with the commitments they have made with respect to CRS implementation. Conversely others may have to consider if the confidentiality obligations contained in their trust and banking laws are consistent with their CRS commitments.

The emergence of many corporate and non-corporate trust registers across the globe has caused privacy and compliancy concerns among most practitioners, although the recent non-constitutional ruling of the French trust register may have an influential outcome across Europe in that respect. We continue to wait and assess the new challenges as they arise in this upcoming new era of transparency.

However, the consistent theme across most jurisdictions is the urgent need to consider which jurisdictions are fit and proper to be granted access to an individual’s financial details.

About STEP’s Special Interest Groups

STEP’s SIGs focus on some of the more complex issues families face in planning for their future, including international families, protection of vulnerable people, family businesses and philanthropic giving.

The groups aim to benefit the practitioner, their area of specialisation, the clients they serve, and the industry at large. They are also open to professionals who are not STEP members.

The SIGs are:

• Business Families
• Charities
• Contentious Trust and Estates
• Cross-Border Estates
• International Client
• Mental Capacity
• Philanthropy Advisors

Please see this page for more details: www.step.org/sigs

 

Emily Deane TEP, STEP Technical Counsel