The government recently approved the Private Funds Bill 2020 and an amendment to the Mutual Funds Law (2020 Revision). The legislation is the result of certain EU and other international recommendations and has been developed to align the Cayman Islands investment fund regulatory regime with those of other jurisdictions. This article summarises the key features of both pieces of legislation.
The States of Guernsey recently passed the Companies (Guernsey) Law 2008 (Insolvency) (Amendment) Ordinance 2020, making Guernsey an even more desirable forum for insolvency proceedings. The changes show that Guernsey is prepared to arm insolvency office holders with the necessary tools and powers to tackle, draw in and preserve the assets of an insolvent company for the benefit of creditors.
The Royal Court recently declared void certain actions of a trustee by which the assets of two Jersey law trusts had been transferred into a circular ownerless corporate structure, terminating the trusts. This case highlights the need for trustees to obtain detailed legal and tax advice when considering a restructuring of assets held in trust and is a helpful reminder that a trustee's duty to account is at the heart of the trustee-beneficiary relationship.
Under the Security Interests (Jersey) Law 1983, the powers of a secured party on enforcement were limited to a power of sale. The Security Interests (Jersey) Law 2012 changed the way in which security is created over intangible movables and introduced a wider range of enforcement powers. This article examines the enforcement of security interests in the event of default.
It has been more than a decade since blockchain – or distributed ledger technology – appeared on the financial services landscape. Yet, it is still capable of generating excitement as its value in transforming processes continues to develop. As blockchain increases its reach and its impact in specific industries grows, this will generate a need for suitable models of insurance. Cayman-based technology companies have expressed interest in buying insurance from local insurers.
A long-running Jersey fraud case illustrates the difficult task that the Channel Island courts sometimes have in comparing and distinguishing between developed principles of English law and foundational elements of the islands' customary law. The case tackles two Jersey law 'hot potatoes': the question of the rights between wrongdoers to claim an indemnity or contribution outside the scope of the limited statutory scheme between joint tortfeasors and the extent and nature of the doctrine of unjust enrichment under Jersey law.
A shift in Guernsey's corporate and individual attitude towards the misuse of data is now central to the Office of the Data Protection Authority's (ODPA's) future approach to governance and enforcement in Guernsey. This article rounds up the key issues which the ODPA has communicated and which will dictate its approach, including changes in workplace culture and the delayed introduction of the self-funded charging system.
The Cayman Islands is one of the leading jurisdictions in the world for the establishment of closed-ended investment funds. Funds are often formed as exempted limited partnerships (ELPs). While other types of Cayman vehicle can be, and are sometimes, used as fund vehicles depending on the circumstances, an ELP is by far the most common type of entity used. Consequently, this article focuses solely on subscription-secured financings with an ELP as the choice of fund vehicle.
The Taxation (Companies – Economic Substance) (Jersey) Law 2019 came into effect in January 2019 and applies to certain Jersey tax-resident companies which conduct one or more relevant activities. Family office structures which include Jersey tax-resident companies must consider whether those companies fall within the scope of the law. If they do, they must satisfy the three-stage test set out in the law or face a number of progressively punitive penalties.
Wealth is increasing exponentially among some of the world's richest families to the extent that, for many of these families, it makes commercial sense to set up their own bespoke family office to look after their key operations – and they are increasingly looking to Jersey as the place to do it. There are a range of factors as to why Jersey is becoming a jurisdiction of choice for families across the world looking to set up such an operation, including global economic shifts and Jersey's expertise and personnel.
Wealth is increasing exponentially among some of the world's richest families to the extent that, for many of these families, it makes commercial sense to set up their own bespoke family office to look after their key operations – and they are increasingly looking to Guernsey as the place to do it. There are a range of factors as to why Guernsey is becoming a jurisdiction of choice in this regard, including political stability and the fact that it has the expertise and personnel to manage family offices well.
The Jersey Court of Appeal recently handed down a long-awaited judgment in the Z Trusts case. The decision considers important questions regarding the equitable rights of former trustees and whether those rights have priority over the rights of other claimants to the assets of a trust (including successor trustees) whose liabilities exceed its assets. As such, trustees must consider the practical implications of this judgment and whether and how they should be mitigated.
The Jersey Royal Court recently ruled on the extent of its powers to restrict a party that withdraws proceedings to start afresh in a judgment that considered, for the first time, the implications of a 2014 English Court of Appeal decision on the public interest in there being finality in litigation. This is an important decision for maintaining the public interest in the finality of litigation and the efficient administration of justice.
This article has been removed at the request of the contributing firm.
It is well known that new investment company listings have been relatively sporadic of late – this is not entirely due to Brexit, but it is clear that Brexit has stalled a number of fundraisings which have gone out to market. Fortunately, once there is some clarity on the way forward, there may be a race to market. Data from the London Stock Exchange (LSE) to the end of January 2019 shows that Guernsey is home to more non-UK incorporated companies listed on the LSE than any other jurisdiction globally.
The first-ever challenge to a decision of Channel Islands Financial Ombudsman Douglas Melville has been heard by the Jersey Royal Court. The court upheld the ombudsman's decision that local mortgage broker and lender Future Finance pay two individuals more than £63,000 in compensation.
Two recent cases in the Guernsey Royal Court – one relating to the variation of a settlement and one relating to the winding up of a trust – demonstrate the complex trusts cases that regularly come before the court. The first case involved an application from two mothers on behalf of their children, whose father is a famous professional footballer. In the second, an investment firm, as the sole member of a discretionary class of beneficiaries, applied for a trust to be terminated and the trust fund to be distributed to it.
The Income Tax (Substance Requirements) (Implementation) Regulations 2018, as amended, came into effect on 1 January 2019 and apply to accounting periods commencing on or after that date. The new economic substance requirements apply to certain Guernsey tax-resident companies and have been passed in order to comply with the EU Code of Conduct Group on Business Taxation. This article summarises the current position relating to the substance requirements for fund management companies.
Anyone that has been refused planning or building permission or disagrees with a condition that has been attached to a planning or building permission or anyone that owns or occupies a building or land where a building, place or tree has been listed can appeal against a planning decision. However, Jersey planning appeals raise numerous questions regarding costs and the appeal process.
The Taxation Law 2019 has introduced new economic substance requirements which apply to certain Jersey tax-resident companies. The requirements were passed to comply with the EU Code of Conduct Group on Business Taxation for the purpose of demonstrating that the profits generated by Jersey companies which carry on certain specified geographically mobile activities are commensurate with their economic activities and substantial economic presence in Jersey.