Guernsey: Our place in the world Guernsey Finance LBG
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Our place in the world
Membership of the WTO
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Commitment to the OECD
Our place in the world
Guernsey plays its part in the OECD’s success against tax evasion. Guernsey’s government was an early adopter of the OECD’s Common Reporting Standard (CRS). Since 1990 the convention applies to Guernsey
As a Crown Dependency, in 2019 Guernsey gained membership of the WTO through the UK. UK membership extends to Guernsey
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Relationship with the UK
Our place in the world Relations with the EU
Guernsey has never been, and is unlikely to ever be, a member of the EU. The island’s third country status remains unchanged. This includes unchanged access for services. Third country status to remain unchanged
Guernsey has a historic relationship as a territory of the Crown, part of the British Isles, but outside the UK. This remains unchanged after the UK leaves the EU. 800 years of constitutional autonomy
Our role in the world
Major investor in the American economy
According to 2020 research commissioned by Guernsey’s government, in mid-2019 Guernsey-domiciled funds enabled a capital flow of £41.6bn into the UK and £77.1bn into Europe. Guernsey routes capital into the UK and EU
Our role in the world
Facilitator of British and European investment
According to recently published research by Frontier Economics, Guernsey-domiciled funds enabled a capital flow of £43 billion into the USA in mid Guernsey funnels wealth into the US
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Enabler of greater returns
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Tax neutrality improves the welfare loss of taxation so the degree of economic efficiency. The greater the economic efficiency, the greater the Guernsey tax neutrality improves economic efficiency
Tax neutrality has been proven, by the likes of Dr Jason Sharma of Cambridge University, to improve the welfare loss of taxation by erasing the deadweight loss derived from a higher tax rate. Tax neutrality has proven advantages
Our role in the world
Proven economic efficiency
A brief history Continuing proven market access
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Access to US Guernsey’s access to the US also remains unchanged. The island has the highest number of funds sold in the nation, through Regulation D Private Placement.
Bridging UK, EU & US Markets for funds
Access to EU Guernsey has unchanged access to the EU following Brexit. Guernsey is the specialist leader of the European private equities market.
Access to UK Guernsey has unchanged access to the UK following Brexit. Guernsey is home to more non UK entities listed on the LSE markets than any other jurisdiction globally.
The Alternative Investment Funds Management Directive (AIFMD) leaves most AIFMs with two choices when marketing their products to EU investors, by either EU (AIFMD) passport or the National Private Placement Regime (NPPR).
Proven, smarter, faster access for funds
EU passport The passport is available to EU AIFMs marketing EU AIFs. It provides an EU state, such as Luxembourg, with access to other EU member states. Access to the EU market
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NPPR Guernsey has proven, smarter, faster access to investors in the EU through the NPPR. This agreement has remained following Brexit on 31 January, 2020.
Following the UK’s departure from the EU, the AIFMD faces uncertainty. No longer a member of the EU, most if not all EU Directives will have no jurisdiction in the UK. This means the likes of Luxembourg will not have access to market into the UK.
EU passport The passport has remained in place during the implementation period, for European funds marketing into the UK. However, following the end of the period, the passport faces uncertainty. Access to the UK investor market
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NPPR Guernsey and the UK signed a MoU regarding Article 42, stipulating that Guernsey funds will continue to have unchanged access to the UK market following the end of the implementation period.
Proven, smarter, faster access for funds
A brief history A substancecentreleadingof
OECD Whitelist Whitelisted in 2019. EU Whitelist Whitelisted by the EU review process in 2019. Substance legislation
Guernsey introduced Economic Substance legislation in 2019.
Commitment to economic substance
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OECD MLI/MCAA Guernsey signed the OECD’s Multilateral Instrument to implement tax treaty related measures and is a signatory of the Multilateral Competent Authority Agreement to share relevant information in relation to Country by Country Reporting.
FATF Compliant or largely compliant with Financial Action Task Force recommendations on AML and CFT.
Commitment to the BEPS agenda and AML
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Other BEPS actions Guernsey continues a programme of alignment with future BEPS initiatives.
Commitment to tax transparency
US FATCA In 2013 Guernsey signed a Model I agreement with the United States to implement Foreign Account Tax Compliance Act based reporting. OECD Whitelisted in 2009 and branded a co operative jurisdiction in 2015.
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OECD CRS Guernsey was an early adopter of the OECD Common Reporting Standard for the automatic exchange of information in 2014.
A leading global finance centre
of choice for family office 50
insurance
Global
Home to specialist insurance sector, providing alternative risk transfer solutions to sophisticated clients.
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Leader captive
retirement
Guernsey
Jurisdiction years experience in the servicing of private wealth. pensions specialist is home to legal, tax and actuarial advisers who specialise in international benefit schemes.
Global funds leader #1 leader in the European private equities market. A leading global finance centre
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Stability Guernsey is politically and economically stable an island of stability in a world of political upheaval and economic uncertainty.
Specialisms
Guernsey is a specialist finance centre for administering and managing alternative assets classes, providing bespoke structures for HNWs, and more.
Certainty Guernsey is a global finance centre with more than 50 years’ experience in providing specialist solutions to sophisticated clients.
Specialist jurisdiction of certainty and stability
WEAREGUERNSEY.COM Member of the UN Sustainable Insurance Forum Commitment to sustainability World-leading green products and services TISE GREEN, launched November 2018 ESG and Sustainable framework for ILS and Captive Insurance launching late 2020
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