STEP Geneva Conference
ABOUT THE REVIEWERS: Julien Dif TEP is a Partner
at Bonnard Lawson in Geneva and Branch Chair of STEP Suisse
Romande, and Cécile Civiale Vuillier TEP is Managing Director of
Bedell Trust Suisse SA and Vice-Chair of STEP Suisse Romande
STEP’s Geneva Conference took place on 7 May 2012, when
Switzerland was at the centre of several major international
controversies in the wealth-management industry. Despite this, more
than 140 delegates attended the conference, which was held at the
Hotel President Wilson in Geneva.
Expert speakers included Richard Hay (Stikeman Elliott),
Jean-Philippe Krafft (Rhône Trust and Fiduciary Services), Xavier
Isaac (Investec Trust Jersey), Judith Chatoo (Coutts and Co),
Prosecutor Deputy Dario Zanni and Geneviève Berclaz (BRP Bizzozero
and Partners).
Richard Hay opened the show with a dissection of the new wave of
global tax regulation, particularly so-called tax transparency and
the push for automatic disclosure. Switzerland’s success in
financial services is bound to expose it to scrutiny, he said, but
is it just a Trojan horse invented by rival jurisdictions to create
a commercial advantage for their own financial sectors?
Hay pointed out, for example, that the US receives capital
flight from Latin America without asking whether tax has been paid
on it, while the untracked ownership of limited companies in
Delaware and other states is a scandal. Switzerland must respond,
he said, by protecting its tax neutrality while keeping pace with
applied global standards.
Jean-Philippe Krafft explained the complexity of Switzerland’s
new withholding tax agreements with Germany, Britain and Austria.
The variety in clients’ circumstances means that special cases and
exceptions abound.
It is likely that few people outside Switzerland knew that the
country’s criminal prosecution system underwent sweeping changes
this January, with the abolition of investigating magistrates in
favour of an all-powerful Public Prosecutor’s office. One of its
senior staff, Dario Zanni, briefed conference delegates on how this
will affect prosecutions involving trusts – 90 per cent of which
are money laundering cases. He warned attendees of the office’s
extensive powers. Its authority cannot be challenged and it cannot
be sued for damages.
Zanni said Switzerland ‘absolutely needs’ foreign cooperation,
and in return the Swiss authorities generally collaborate with
international criminal assistance requests. For trusts, the most
frequent requests are for freezing of bank assets, seizure of bank
documents, and searches of a bank or fiduciary company
premises.
And according to Zanni, reports of the death of Swiss banking
secrecy have been exaggerated. It is still a Swiss public right
protected by law, and can only be breached if it is necessary to
detect a crime where specific indications to investigate already
exist. ‘No fishing expeditions’ remains the Swiss mantra in this
context.
Geneviève Berclaz described how the Swiss financial regulator
FINMA has adapted to the recent international attack on banking
secrecy, which culminated in US Department of Justice proceedings
against UBS and Crédit Suisse. FINMA has had to steer a course
between requiring banks to protect themselves against these legal
and reputational risks, and not being seen to apply foreign law in
Switzerland. So it has imposed a stricter risk-mitigation regime on
banks, whose management must now control the risks they run when
conducting business in foreign jurisdictions. If they fail, said
Mme Berclaz, they will violate FINMA’s fit and proper person
requirement.
Panel discussions with experts Stella Mitchell-Voisin (Summit
Trust International), Benjamin Mushokoza (Favona SA), Michael
Wells-Greco (Maitland), Luc Thévenoz (University of Geneva),
Stéphanie Jarrett (Baker & McKenzie), Adrian Escher (Kendris)
and Tracy Tepper (Lombard Odier Darier Hentsch Trust Bermuda Ltd)
offered practical solutions in patrimonial structuring and answered
questions on regulation of trustees, fiscal responsibility,
exchange of information, judicial cooperation and professional
liability. The debate is to be continued, and we look forward to
seeing you on 29 April 2013 for the next episode.
The conference was a tremendous success, which we dedicate to
and share with those who supported us and helped to obtain such
results: organiser VisionCompliance SA and sponsors Hottinger Group
(presenting sponsor), Ace International (gold sponsor), Gam (silver
sponsor), AP Executive (coffee-break sponsor) and Swiss Life
(cocktail sponsor). We also would like to thank Genève Place
Financière and Banque & Finance magazine for their
support.
STEP South Africa Conference
ABOUT THE AUTHOR: Harry Joffe TEP is Head of Legal
Services at Discovery Life and branch secretary of step
johannesburg
The first STEP conference to be held on the African mainland was
eagerly awaited. In the end, 150 delegates attended, which gave
much hope for the future development of STEP in this region.
The conference began with an entertaining keynote address by
Judge Zulman, with his comments on the Supreme Court of Appeal
judgment in the Badenhorst case. This was followed by Prof
V D Westhuizen giving a detailed review of common errors in South
African trusts, looking at South Africa’s system of Roman Dutch
law. Two of STEP’s most accomplished and frequently heard speakers,
Nick Jacob and Richard Pease, then spoke on trusts and divorce, and
tax information exchange treaties. The delegates were taken to
lunch by a brief panel discussion on case studies illustrating good
reasons for setting up trusts, by Mervin Messias, Harry Joffe and
Prof V D Westhuizen.
After lunch there were successive breakout sessions on
Mauritius, Seychelles, the UK and the Channel Islands, and the
first day was completed with a summary of STEP Worldwide’s
activities and upcoming plans. One of the highlights of the first
day was the inspirational after-dinner talk by Yusuf Randera-Rees
on how the poor of South Africa have great talent, which is being
developed into successful businesses by his ‘incubator’
company.
Day two was begun by Prof Michael Honiball, who went into detail
on the tax dangers South Africans face when emigrating to the US,
particularly when they have trusts. He was followed by Harry Joffe,
who looked at six recent South African trust court cases,
illustrating the nuances of South Africa’s Roman Dutch legal
system, particularly when applying to changing of beneficiaries and
attempting to hold a trust to a contract signed by its trustees.
Nick Jacob and Richard Pease then gave an entertaining talk on
practical war stories on trusts, to which everyone could relate.
Assad Abdullatiff got everyone through to lunch with a
well-researched roundup of some of the most interesting offshore
trust court cases from the past year.
After lunch, breakout sessions on STAR and VISTA trusts,
foundations and sham trusts were well attended, and the conference
concluded with a fascinating presentation by Steve Watson on the
positive predictions for African growth in the next decade and the
case for investment in Africa. Sponsors AFRASIA, CIM and Bedell
kindly handed out prizes in a business card draw.
The conference gave the many foreign delegates an insight into
the unique nature of South Africa’s trust law, and, with many
delegates staying on for an extra day, a brief glimpse into the
workings of Johannesburg, Africa’s richest city. It also provided
local delegates with an opportunity to update their knowledge on
both South African and international trust matters, as well as
giving all present an excellent opportunity to network.
Delegates were delighted to hear that due to the success of this
conference, it will become a regular event, and next year’s
Southern African conference will be held in Mauritius in March
2013.
STEP Pacific Rim Conference
ABOUT THE REVIEWER: M Katharine Davidson TEP is a
Partner at Holland & Knight LLP and branch programme officer of
step los angeles
The fifth annual STEP Pacific Rim Conference was held on 3-4 May
2012 in Santa Monica, California, produced by the West Coast
branches of STEP USA. The conference featured experienced and
knowledgeable speakers from jurisdictions with an impact in and
around the Pacific Rim, and drew participants from around the
world.
The two-day conference began with a panel discussion on marital
property regimes in France, England and Wales, India, the US and
under Shariah law. The panel highlighted differences that often
arise in civil-law, common-law and community property
jurisdictions, as well as nuances for the Hindu undivided family
and interests under Shariah law. The now yearly ‘Inside the
Beltway’ session provided a technical update and explored
developments in international tax enforcement. Other panels
addressed family business succession, and planning and compliance
for individuals with dual nationality. This year featured two
workshops on cross-border planning for private clients and their
businesses, focusing on China, Hong Kong, India, Mexico, Latin
America and the US. Two technical clinics were also offered: the
use of income and estate tax treaties, with the Canadian, UK and
Japanese treaties as illustrations; and an analysis of US income
tax issues addressing foreign trust distributions and PFICs. Two
roundtable discussion groups were held on the last day of the
conference; one featured Thomas Collins, Group Territory Manager,
Internal Revenue Service, on a panel covering the IRS Global High
Wealth Industry Group and the scope and approach of its audits, and
the other examined FATCA withholding.
“The conference featured a sunset cocktail reception
overlooking the ocean”
Clifford Ng of Hong Kong, our luncheon speaker, gave an
educational presentation on private client planning in Asia, noting
the growth of high-net-worth individuals there. Clifford addressed
legal and practical issues to consider when advising residents of
Hong Kong, Singapore and China.
Once again, the conference provided time for attendees and
presenters to network and mingle with new and old acquaintances,
including a sunset cocktail reception overlooking the ocean.
We are grateful to our sponsors, whose generosity makes this
event possible.
We hope you will join us next year for the sixth annual STEP
Pacific Rim Conference.
STEP Cyprus Conference
ABOUT THE REVIEWER: Celia Pourgoura TEP is a
Barrister at Law and Director of CA Advocates (Pourgoura &
Aspri LLC)
Limassol was the city chosen to host the first STEP
international conference in Cyprus, on 10-11 May 2012. The two-day
event was sold out, with more than 180 professionals in attendance
from all corners of the world; a clear illustration of the growing
attraction of STEP conferences.
The STEP Cyprus Conference was an opportunity to hear
distinguished guests speak on issues such as the amended
international trust law in Cyprus, beneficial ownership, family
governance structures and tax planning for numerous jurisdictions,
including Israel, South Africa, India, Russia and the CIS.
A warm welcome by STEP Cyprus Branch Chair Peter Economides
opened day one of the conference. STEP Chairman Michael Young’s
presentation followed, welcoming the audience to Cyprus and
confirming once more that education lies at the heart of STEP.
Cypriot Minister of Finance Vassos Shiarlis delivered an
important message that Cyprus is and will remain an attractive
jurisdiction for inward and outward investments. The Minister
revealed that nearly 80 per cent of the gross domestic product of
Cyprus now comes from the provision of services, among which
finance plays a key role. ‘Not only will we preserve the tax regime
in Cyprus, but we will continue to improve and enhance it,’
Shiarlis said.
Peter Economides and leading lawyer and former MP Maria Kyriakou
gave comprehensive presentations about new developments and
amendments to the international trust law in Cyprus.
Other presentations included an analysis by Richard Pease of
Lenz & Staehlin of the survey of trusts in selected countries,
and Stephen Gray, Attorney and Counsellor, on citizenship and tax
programmes in the legislation of several countries.
Neophytos Neophytou from Ernst & Young stressed the
importance of substance where a Cyprus company has its control and
management in Cyprus. Nicholas Jacob of Lawrence Graham LLP
presented on the importance of family governance and adequate
implementation to accommodate the future in the protection of
private wealth.
Demetra Kalogirou, Chairwoman of the Cyprus Securities and
Exchange Commission, gave a thorough review of the law and
regulations of investment firms in Cyprus. Following this, a panel
discussion answered audience questions and presented a narrative
analysis of investment funds in Cyprus.
Drawing day one to a close, Leon Harris of Harris Consulting
& Tax Ltd delivered a speech on the economy and growth of
Israel and the importance of Israeli taxation.
Day two began with Panikos Tsiallis of PwC addressing the
benefits of Cyprus and giving examples of corporate structures,
followed by a panel discussion. It was evident from the discussion
that a Cyprus holding company is a preferred solution for
jurisdictions such as South Africa, India and CIS countries. Olga
Boltenko of Withers LLP gave an interesting analysis of the
protocol between Cyprus and Russia and amendments to the double-tax
treaty. The presentation also referred to the exchange of
information between Russia and Switzerland.
Geoffrey Shindler OBE, Consultant at DWF LLP, was the final
speaker of the conference and presented an analysis of recent trust
case law.
The conference in Cyprus was a success on all levels:
organisation, attendance and, most importantly, the participation
of such distinguished speakers.
A resounding success
The first STEP international conference to be held in Cyprus
surpassed all expectations.
It filled the room to capacity with leading professionals from
Cyprus and all over the world, and was addressed by an impressive
array of speakers who informed us, enlightened us, educated us and
entertained us.
And this is what STEP conferences are about: to make us stand up
and take notice. To show and tell. To tell and get told! To teach
and get taught. To learn and to further develop.
The conference was about people. It helped us extend and create
friendships. We networked, we socialised, we raised a glass to STEP
and celebrated professional and personal relations.
Note: Peter G Economides TEP was Branch Chair of STEP Cyprus at
the time of the conference