News

in the NEWS

JERSEY TAX COMMENDATION

Jersey has received the highest rating available in an assessment of its practical implementation of the Common Reporting Standard (CRS).

A report from the OECD’s Global Forum on Transparency and Exchange of Tax Information reviewed how well 99 jurisdictions had implemented the CRS. Jersey was among a few to receive the highest rating possible of being ‘on track’ for every aspect reviewed, with an overall rating of ‘on track’.

The CRS requires jurisdictions to collect and exchange tax information on financial assets held in Jersey by non-residents. In 2022, Jersey exchanged this information with the

tax authorities of 74 other jurisdictions.

The review examined whether jurisdictions have the necessary law, processes and systems in place to ensure that their financial institutions are complying with the standard.

It also looked at whether jurisdictions were properly collecting and exchanging the information collected.

Jersey, which committed itself to introducing the CRS in 2014, was one of the early adopters of the standard. Financial institutions have been reporting information since 2017.

The Minister for Treasury and Resources, Deputy Ian Gorst, said: “This rating reflects the seriousness with which Jersey takes its commitments to international tax cooperation and transparency.

“I am pleased that the significant investment of time and resources by Jersey’s financial institutions and Revenue Jersey has been recognised by the OECD.”

GUERNSEY LENDING LAW

The Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022, approved by the States of Guernsey, the States of Alderney and the Chief Pleas of Sark in July 2022, will come into effect in two stages in 2023.

Various provisions come into effect from 1 January, which will allow the Guernsey Financial Services Commission to put in place its own rules and guidance, and to invite applications for licensing. The legislation will then come into full effect from 1 July.

The law covers several areas: • It introduces consumer protection and the regulation of credit provision and home finance across the bailiwick for the first time. • It replaces the existing registration regime for nonregulated financial services businesses with licensing and regulation requirements. • It introduces the regulation of virtual asset service providers, bringing the bailiwick in line with international standards. • It requires peer-to-peer and crowdfunding platforms in the bailiwick to be licensed and regulated.

The Commission is working through responses to its consultation on its rules and approach for regulating the sectors covered by the law.

It plans to issue a feedback paper, together with the finalised rules and guidance, ▼

Done Deals

Jersey law firm Edward Scott and Co has advised Fifty-Eight Capital on the sale of London mixed-use building Holborn Gate to Hoi Hup Realty. Holborn Gate, next to Chancery Lane station, comprises 159,000 sq ft of office and retail space. Edward Scott and Co’s team advised on the Jersey aspects of the sale and worked with Dentons (English counsel) and Moore Stephens (Jersey corporate administrator). A team from Ogier’s Jersey office advised Hoi Hup Realty on the acquisition, working alongside English counsel at Mayer Brown.

Mourant has advised Aristata Capital on the launch of its debut impact litigation fund, Aristata Impact Litigation Fund, domiciled in Jersey. Aristata was attracted to the island by the Jersey Private Funds regime and its scope for ESG-focused investment strategies. The fund is seeking to finance commercial litigation and arbitration that will generate positive and measurable social and/or environmental impact across a global portfolio of claims. Working with lead onshore counsel Reed Smith, as well as Fairway Group, the fund’s Jersey administrator, Mourant LP Partner Alistair Horn led the transaction for Mourant, supported by Counsel John MacFeeters and Associate Kieran Sharman.

Ogier’s corporate and funds advisers in Guernsey have assisted longstanding client Hipgnosis Songs Fund with a financing of $700m. Hipgnosis, which launched in 2018, is a Guernseyregistered investment company listed on the FTSE 250 Index. It is the first UK-listed investment company offering investors a pure-play exposure to songs and associated musical intellectual property rights. Working with onshore counsel Herbert Smith Freehills, the Ogier corporate and funds team provided Guernsey law advice on various aspects of the financing, which will be used to refinance the previous facility and for working capital. Partner Tim Clipstone led the team, assisted by Managing Associate Michelle Watson Bunn and Senior Associate Diana Collas.

Walkers’ Jersey banking and finance team has advised Rothesay on providing a 10-year senior term loan to Lendlease for the acquisition of 21 Moorfields in the City of London. The development, bought for £809m and expected to be completed in Q1 2023, comprises about 564,000ft of retail and commercial office space. The Walkers team, working with instructing counsel at Clifford Chance, was led by Group Partner Jon Le Rossignol and included Senior Counsel Louise Hamilton and Associate Rebecca Lever. They advised the lender on the Jersey law elements of the financing of the new office development, which will become Deutsche Bank’s new home in the City. n

Follow us @blglobalnews Follow our company page BL Global Sign up for email updates at www.blglobal.co.uk

MERGERS AND ACQUISITIONS

Mourant has acquired Luxembourg law firm LexField and its affiliated governance services business, FideField. The transaction, subject to approval, is expected to complete in Q1 2023. LexField, a boutique corporate and tax practice, specialises in private equity, investment funds, M&A and private wealth, while FideField provides entity management services to corporate and financial services clients.

Zedra has announced the acquisition of two companies that provide professional trustee services to UK corporate pension schemes – AAA Trustee and Trustee Matters. The acquisition, which follows those of Inside Pensions and PTL in 2021, as well as Caledonian Trustees and Clear Pen Solutions earlier in 2022, enhances Zedra’s presence in the UK pension services sector. AAA and TML will sit alongside and report through Zedra Governance (formerly PTL) and rebrand as Zedra in due course.

The Highvern group, which has offices in Jersey, Guernsey, Ireland, Switzerland and the UK, has expanded into the Cayman Islands with the acquisition of Genesis Trust & Corporate Services. Genesis, which serves the private capital and funds governance markets, will complement Highvern’s private wealth, funds and corporate services offerings. Director Paul Drake and CEO Roger Priaulx will remain with the business. Roger has also joined Highvern’s Executive Committee. Naomi Rive, Group Head of Private Wealth at Highvern, has joined the Cayman board.

JTC has completed its acquisition of New York Private Trust Company (NYPTC), a Delaware-chartered non-deposit trust company. NYPTC offers a range of fiduciary services, including trusts, estate administration and white-label platforms to highnet-worth individuals, family offices and corporate clients based in the US and around the world. NYPTC joins JTC’s existing private client services operations in the US, which now include offices in Delaware, Miami, New York and South Dakota.

Stonehage Fleming has acquired Rootstock Investment Management, based in South Africa. On completion, Stonehage Fleming will acquire all the operating activities of the business, including the Rootstock SCI Worldwide Flexible Fund and the Rootstock Global Equity UCITS Fund. Subject to approval, Rootstock Global Equity UCITS Fund will be amalgamated with Stonehage Fleming’s Global Best Ideas Equity Fund. Rootstock SCI Worldwide Flexible Fund will be renamed the Stonehage Fleming SCI Worldwide Flexible Fund. Rootstock founder Thys du Toit will join Stonehage Fleming as a Partner. n a list of exemptions from the requirement to apply for and hold a licence, and frequently asked questions, by the end of January. Information on the application process will be published alongside the final rules, and the licence application window will open at that time.

Early submissions will be encouraged, with discounted application fees to allow applications to be processed ahead of the commencement of the law. From 1 July, firms without a licence may not operate until the appropriate licence is in place.

DIRECTORS OF THE YEAR

The 2022 IoD Jersey Director of the Year Awards winners have been announced (pictured above), celebrating leadership across a range of sectors and organisations in Jersey.

Ten awards, as well as the discretionary Chair’s Award, were announced at a presentation event at the Royal Yacht Hotel. The judges included Kevin Keen, Heather MacCallum, Dan Hare, Helen Hatton, Kate Wright, Kate Nutt and Chris Ambler. • Director of the Year, Large

Business – Paul Murphy (Onogo) • Director of the Year, SME

Business – Chris Le Masurier (Jersey Oyster Co) • Family Business Director of the Year – Gerald Voisin (Voisins) • Start-up Director of the Year – Rob McCombie (TCA Digital) • Third Sector Director of the

Year – Donna Abel (Jersey

Cheshire Home) • Public Sector Director of the Year – Amy Taylor (Digital Jersey) • Young Director of the

Year – Nathan Nicholls (Switch Digital) • Director of the Year, Equality,

Diversity and Inclusion –

Julia Warrander (Affinity

Private Wealth) • Director of the Year,

Sustainability – Mark

Brandon (SunWorks) • Non-Executive Director of the Year – Alan Merry (Jersey Post) • Chair’s Award – Lisa

Springate (Head of Legal and

Technical, Jersey Finance).

BUSINESSLIFE ROUNDTABLES

Businesslife has announced a series of roundtable debates for 2023. The virtual discussions will bring together top business leaders from across the islands to discuss the hot topics facing the business world – and will be tied to the magazine’s key themes for the year: • February/March – Wealth • April/May – ESG • June/July – Future of Financial Services • August/September – Funds • October/November – Trends and Disruptors.

Following each discussion, a write-up of the key messages from the debates will be produced for the magazine – offering readers insights into the minds of the islands’ leading figures.

To take part in the continued ▼

Deloitte publishes TMT predictions for 2023

Deloitte’s technology, media and telecommunications (TMT) practice has announced its predictions for the sector for 2023. These include:

Advertising video on demand

Deloitte predicts that by mid-2023, all major video subscription services will have launched an ad-funded tier alongside ad-free offerings in Europe.

By the end of 2024, half of these providers will also have launched a free ad-supported streaming TV (FAST) service.

Additionally, about twothirds of consumers will use at least one advertising video on demand service monthly, 5% up on 2022. By 2030, most online video service subscriptions will be partially or wholly ad-funded.

Meanwhile, ad-funded tiers from subscription video on demand (SVOD) platforms will join existing ad-funded streaming services from broadcasters.

Shopping through social media

Deloitte predicts that spending on goods and services via social media will surpass $1trn (£820bn) globally in 2023 – representing a 25% increase year-onyear from $800bn (£650bn) in 2022 and $655bn (£540bn) in 2021.

This comes as a growing number of platforms offer e-commerce services, whether via content creators or brands.

Consumers are turning to new forms of online shopping to find the best deals.

Research published in 2022 showed that in the UK 53% of Gen Z consumers and 42% of Millennial consumers are influenced by social media personalities when they are making buying decisions.

Smartphone accessibility

Deloitte predicts that 2023 will see the launch of the first 5G smartphones to retail at less than $100. Although this will make up a small share of smartphone sales in 2023, it marks a move towards more accessible 5G devices for consumers across most markets.

A $99 5G phone would look and feel similar to that of a top-of-the-line model in size and design, but would consist of low-end displays, single-lens cameras, low-power processors and smaller storage capacities. The total sum of these components, plus shipping and assembly, could cost as little as $127.

The manufacturer, which could be a telecoms provider, could then subsidise the retail price of the device with additional revenue streams, such as pre-installed apps, and advertisements.

Virtual reality goes mainstream

Deloitte predicts the virtual reality market may generate almost $7bn (£6bn) in global revenues in 2023, a 50% increase on 2022’s estimate of $4.7bn (£4bn).

Headsets will generate almost all (90%) of revenue in 2023, with around 14 million units, averaging $450 (£370) each, expected to sell across the year.

Deloitte predicts that the number of actively in-use VR headsets worldwide will reach 22 million in 2023, almost 50% higher than the figure in mid-2022.

Consolidation of gaming sector

Deloitte predicts that in 2023, global deal volumes for game company mergers and acquisitions will increase by around 25%, up from 600 in 2021 and an estimated 750 in 2022. n

BUSINESSLIFE ROUNDTABLES (continued from p8)

roundtable discussions, business leaders are invited to email Editor Jon Watkins, setting out their suitability and the subject they would like to speak on – jon.watkins@ blglobal.co.uk.

The write-ups of the discussions will also provide sponsorship opportunities for businesses interested in promoting themselves around certain topics – with deals available alongside the magazine’s other exclusive advertising offer announced earlier in 2022: • An advertising slot in any three issues of Businesslife in 2023 • Advertisers that commit by 31 December 2022 can secure all three advertising slots for a combined price of £2,500 • Advertisers that book before 31 January 2023 can secure the deal for £3,000.

If you are interested in exploring these or other commercial opportunities in Businesslife throughout 2023, please contact Carl Methven on 07377 866779 or email carl.methven@blglobal.co.uk.

HSBC BALANCING ACT

A global study from HSBC has found that businesses face a balancing act of targeting international expansion and managing trade and supply challenges, with investment in digital platforms set to be a big driver behind that growth.

HSBC’s Business Balancing Act study surveyed CEOs and CFOs from more than 2,100 businesses across 14 markets around the world. It found that 64% of global mid-market enterprises – firms with a turnover of between $10m and $500m – plan to expand internationally in 2023.

The relative positivity shown by businesses, however, is set against concerns over inflation and the cost of living (38%), increased interest rates (32%) and, for many markets, political uncertainty (27%). The research, carried out for HSBC by polling company Toluna, also found that businesses expect technologydriven efficiencies and the expansion to new digital platforms and channels to be two of the major growth drivers, demonstrating business leaders’ continued emphasis on digital and innovation.

In addition, more than a third of those polled said increasing domestic demand and the ever-growing prioritisation of sustainability will play vital roles.

Aline Ayotte (pictured), Head of Commercial Banking at HSBC in the Channel Islands and Isle of Man, believes the Crown Dependencies have the capacity to play a key role supporting that growth.

“There are a number of indicators in this global survey that suggest the Channel Islands and Isle of Man are well placed to support the international growth objectives of businesses in 2023,” she said. “The islands have the capability to provide much needed access to financing for cross-border businesses looking to grow into new markets, while offering innovative digital solutions that can assist companies with streamlining operations.

“The islands have been successful in establishing themselves as centres for sustainable finance and, against the backdrop of market volatility, provide businesses with platforms of stability.

“That will be highly prized heading into 2023. It’s important that the islands continue to be robust and clear about delivering that message to the global commercial sector.” n