Seizing opportunities amid uncertainty: insights from the Jersey Finance Private Wealth Conference

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This year’s Jersey Finance Private Wealth Conference in London was themed “Beyond the Permacrisis: Taking Advantage of Change and Opportunity.” The event offered thought-provoking sessions and engaging networking opportunities, with insights that are invaluable for navigating the current landscape. James Michel, Director in Private Wealth, summarises the key themes covered at the event.

Geopolitics and the new world order

Keynote speaker Tim Marshall set the tone with a captivating presentation on the “multipolar world” we now live in, emphasizing the role of geography in shaping global politics. He also touched on the modern “space race” and left the audience with a powerful reflection, quoting, “there is nothing new under the sun,” suggesting that history often repeats itself, but with greater understanding each time. During an interactive Q&A, Marshall shared his prediction that Argentina could emerge as a major player in the next 20 years, sparking conversations about future growth regions.

Strategic wealth management in a volatile world: key panel insights

The panel discussions centred around how private investors and families can successfully navigate a world marked by geopolitical volatility.

  • Strategic investing in turbulent times: The panellists emphasised the importance of thinking strategically about investing amidst geopolitical risk. Collaboration among advisers is critical to understanding and navigating economic cycles, which, as mentioned, can last up to 30 years.
  • Global families and wealth management: As clients become increasingly multi-jurisdictional, wealth advisers must adapt to the complexities of managing assets and family affairs across borders. The rise in global mobility has resulted in families maintaining multiple residences, businesses, and investments in different jurisdictions, each with its own legal, regulatory, and tax implications. This shift demands greater flexibility in wealth structuring, as traditional approaches often fall short in accommodating the modern, borderless lifestyle of high-net-worth individuals.

    Advisers must craft bespoke solutions that not only address the diverse requirements of these global families but also account for evolving regulations and geopolitical uncertainties. This includes managing cross-border tax compliance, mitigating risks associated with different legal systems, and ensuring a seamless transfer of wealth across generations. Additionally, there is an increasing focus on the professionalisation of wealth management, as family offices look for more sophisticated governance models, operational efficiency, and a broader suite of services to support their global aspirations.

    With a growing demand for holistic, internationally adaptable strategies, wealth advisers must collaborate more closely with global legal, tax, and financial experts to ensure that structures are robust, future-proof, and responsive to the dynamic needs of modern global families.

  • Philanthropy at the forefront: Philanthropy is increasingly important to high-net-worth families, particularly in regions like the GCC, where philanthropic donations are estimated at $210 billion annually. This shift represents a significant change from tax being the primary driver of wealth management conversations in the past.
  • Embracing change and technology: Technology was a major theme, with AI and fintech emerging as transformative forces within the wealth sector. While there is still misinformation surrounding AI, it was acknowledged that AI is here to stay and offers significant efficiencies. However, governance and regulation will be essential in mitigating its risks. Although there was some debate that AI could erode jobs, most panellists agreed it is more about reshaping how we work and integrating AI tools into our day-to-day processes, not replacing human talent.

Looking ahead: opportunities for family offices

The conference concluded with a dynamic Q&A session discussing how jurisdictions can attract family offices—entities set up by high-net-worth families to manage their wealth. A key theme was the “ease of doing business,” encompassing streamlined regulatory frameworks, tax incentives, and administrative efficiency. Family offices seek jurisdictions that offer straightforward processes, allowing them to focus on strategic planning rather than compliance burdens.

The panelists also emphasised the importance of stability and predictability in governance, with family offices favouring locations known for political and economic security. Furthermore, jurisdictions must embrace innovation and provide access to advanced fintech and bespoke services that cater to the unique needs of family offices, including impact investing and philanthropy advisory.

Overall, the Jersey Finance Private Wealth Conference offered valuable insights into the challenges and opportunities presented by today’s global landscape. From navigating geopolitical risks to embracing the AI revolution, the event highlighted the importance of strategic thinking and adaptation for the future of wealth management.

At Belasko, our private wealth services are designed to protect, grow, and transition wealth while navigating complex legal and regulatory environments. We offer tailored solutions across four key pillars: philanthropy, next generation, entrepreneurship, and sustainable investing. If you’re interested in exploring our private wealth services in Jersey, please reach out to James Michel ([email protected]).

Transferring a trust to a new trustee: A strategic option for HNWIs

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An essential wealth transfer tool for any high net worth family is ensuring the effective management of a family trust, preserving your legacy, and ensuring that future generations benefit from your foresight. However, there may come a time when the trustee originally appointed is no longer the best fit for your evolving wealth management needs. Transferring a trust to a new trustee can be an efficient and strategic move to ensure that your assets are managed in line with your objectives.

In this article, Andy Bailey, Head of Private Wealth, explores why and how to transfer a trust to a new trustee, the benefits it offers, and what high net worth individuals (HNWIs) should consider throughout the process.

Why transfer a trust to a new trustee?

Trusteeship is an integral part of managing complex wealth, and while trustees are bound by a fiduciary duty to act in the best interests of the beneficiaries, circumstances often change. Whether due to shifting financial goals, personal relationships, or the evolving complexity of wealth management, HNWIs may find it beneficial to appoint a new trustee. Here are some common reasons:

  • Sophistication and expertise in asset management

HNWIs often have diverse portfolios that include not only liquid assets like stocks and bonds but also real estate, private equity, art collections, or even family businesses. The expertise required to manage these assets effectively can be highly specialised. If the current trustee lacks the necessary skills or experience, especially in global investments or niche assets, it may be time to seek out a trustee with more appropriate expertise.

  • Better personal service and engagement

Trustees are not just financial managers; they play a significant role in stewarding wealth for future generations. For HNWIs, having a trustee who understands their unique financial goals and family dynamics is critical. If the current trustee lacks responsiveness moving to a trustee who provides a more personalised, high-touch service can lead to greater satisfaction and trust in the management of the assets.

  • Jurisdictional and regulatory advantages

With the global mobility of HNWIs, you or your beneficiaries may have moved to a new country with different tax laws and regulatory frameworks. Transferring your trust to a trustee who understands jurisdictional obligations when it comes to tax and regulation and can help simplify compliance with local laws can be hugely advantageous.

  • Changing family or business circumstances

As families grow and their financial needs evolve, trustees must adapt to new circumstances. If your family has expanded or there are new business ventures to consider, the existing trustee may no longer be the best fit. A trustee with experience in intergenerational wealth transfer or managing family-owned businesses might offer better solutions for your family’s evolving financial landscape.

  • Market consolidation and continuity concerns

The trust market is seeing significant consolidation, with many trustees being acquired by larger firms, leading to disruptions in service quality and a loss of personal relationships. For HNWIs seeking stability and consistent service, moving to a trustee that is independently/family-owned can provide long-term continuity and a more personalised relationship management approach. These trustees often have a vested interest in maintaining strong, lasting client relationships.

The process of transferring a trust is easier than expected

For HNWIs, the prospect of transferring a trust may seem like a complex endeavour, but the process can be straightforward, especially with the right advisors. Here’s how it generally works:

  1. Review the trust deed and legal requirements: Consult the trust deed to understand the terms governing trustee replacement. Most trust deeds include provisions that outline the process for appointing a new trustee. Some may require the consent of beneficiaries or a protector, while others may provide broad discretion to the settlor.
  2. Consult advisors and stakeholders: Before making any decisions, it is essential to consult with your legal, tax, and financial advisors. They will help assess any potential legal or tax implications of moving the trust to a new trustee, particularly if the transfer involves cross-border assets or multi-jurisdictional considerations.
  3. Appointing the new trustee: Choosing a new trustee is arguably the most important step. For HNWIs, the decision should be based on a trustee’s ability to manage complex asset structures, their understanding of global markets, and their approach to family governance and succession planning. Boutique trust companies are often preferred by wealthy individuals because they offer a higher level of service and a bespoke approach.
  4. Prepare the legal documentation: Once the new trustee has been selected, a Deed of Retirement and Appointment will need to be drafted to formalise the transition. This document specifies the outgoing trustee’s resignation and the appointment of the new trustee. Your legal advisors will ensure that all documentation is in order and compliant with the trust deed and local laws.
  5. Transferring assets: Transferring the trust’s assets to the new trustee may require coordination with financial institutions, asset managers, or other parties to ensure a seamless transfer. Additional steps may be required if assets are in different jurisdictions to comply with local laws or regulations.

Key considerations for High Net Worth Individuals

As with any significant financial decision, there are several important factors to keep in mind when considering a transfer of trusteeship:

  • Legal and tax implications: A transfer can trigger tax liabilities, especially in cross-border cases, so consult tax professionals to plan accordingly.
  • Trustee reputation: Ensure the new trustee has the expertise and reliability to manage large estates as well as a consistent and responsive approach to relationship management.
  • Long-term flexibility and stability: You want a trustee who can evolve with your financial and family circumstances over time. Choose a trustee who can adapt to changing circumstances and family dynamics and have a solid ownership structure behind them.
  • Costs of the transfer: Weigh legal fees and transfer costs against the long-term benefits of appointing a more capable trustee. At Belasko, we can make the transition seamless, fill any gaps you’re experiencing with your existing trustee, at a competitive cost.

A strategic move for wealth preservation

For high-net-worth individuals, transferring a trust to a new trustee can be a strategic decision that enhances the management and protection of wealth. Whether you are seeking better expertise, more personalised service, or a trustee with jurisdictional reach, the process of transferring trusteeship is easier than many might think.

As an independently owned business, our private wealth team are reliable, experienced and provide continuity and longevity in building relationships. Our bespoke private wealth solutions draw on the many years’ experience of managing the needs of HNWIs. We collaborate with your advisors, act as professional trustees, and ensure effective management and administration of the trust. We can ensure a seamless and smooth transition of your trust, at a minimal cost, which will also be a valuable step toward safeguarding your legacy for generations to come.

If you’d like to discuss transferring your trust, get in touch with Andy Bailey ([email protected]).

Embracing Finovation: Key Takeaways

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Last week, Andy Bailey, our head of private wealth, attended the ‘Finovation: The Guernsey Edge’ conference, hosted by the Guernsey Financial Services Commission and Guernsey Finance. The conference focused on how Guernsey’s financial sector can leverage its agility, strong legal framework, and forward-thinking regulation to embrace emerging technologies and drive growth.

Below Andy highlights his key takeaways from the event.

  • Harnessing technology for growth: Guernsey’s financial services sector is positioned to benefit from technological advancements, including AI and quantum computing. These technologies offer potential improvements in efficiency, risk modelling, and fraud detection, and are seen as critical for maintaining Guernsey’s status as a leading international finance centre.
  • Mitigating cyber risks: Speakers stressed the importance of addressing cyber risks in the financial sector. They highlighted the need for robust cyber risk management and regulatory compliance to protect against breaches and ensure financial crime controls are effective.
  • Regulatory innovations and openness: The Guernsey Financial Services Commission (GFSC) gave a sneak peak in to their soon-to-be-introduced new authorisations portal. This portal will digitalise and streamline processes whilst offering more visibility which will fundamentally make Guernsey an even more attractive place, with a much easier process, for those wanting to do business in the island.
  • FinTech vs. traditional banking: While FinTech solutions are reshaping the banking landscape, there were discussions around the potential risks for individuals and organisations. Concerns include the reliability and security of digital-only platforms compared to traditional banks who offer stability and reassurance, as well as regulatory clarity and the longevity of FinTech providers. The private wealth sector particularly are still a way off utilising FinTech banking solutions as they need to carefully weigh the benefits of innovation against safely securing their wealth without any risks.
  • Openness to innovation in Guernsey: Panellists Alexis Augier, CEO at Vega, and Matt Ong, Founder and CEO at Ctrl Alt, praised Guernsey’s openness to cutting-edge financial innovations, including fund administration and structures like Private Investment Funds and Protected Cell Companies. They recognised that with tokenisation comes a lot of scepticism and unclarity but, with the GFSC’s clear guidance on tokenisation, businesses can benefit from better speed to market and cost-effectiveness when looking to innovate.

The ‘Finovation: The Guernsey Edge’ conference provided invaluable insights into the future of Guernsey’s financial services sector, highlighting the island’s strong position to benefit from emerging technologies. From AI and quantum computing to innovative regulatory practices, Guernsey is well-equipped to navigate the challenges and opportunities presented by the rapidly evolving financial landscape.

With the GFSC’s openness to innovation and proactive stance on regulation, the island remains a competitive and attractive hub for businesses looking to capitalise on technological advancements. Guernsey’s agility and commitment to embracing innovation are critical to maintaining its status as a leading international finance centre.

If you’d like to discuss innovative solutions within private wealth, get in touch with Andy Bailey ([email protected]).

Navigating New Waters: Impacts of UK Government’s Non-Dom Tax Reform

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As the UK navigates changes in the non-dom tax regime, the new Labour government under the Treasury’s leadership is set to introduce several strategic updates. These updates are part of a broader effort to align the UK’s tax system more closely with international standards and maintaining stability.

The government will finalise policies in the upcoming Budget (30th Oct) but here we highlight some of the key proposed updates to the UK taxation for non-dom individuals that should be considered carefully[1].

Foreign Income and Gains (FIG)

  • Current system: Non-domiciled individuals in the UK are currently taxed on a remittance basis, meaning you are only UK taxed on income and gains remitted to the UK.
  • Proposed new system (from 6 April 2025): A shift to an internationally competitive residence-based system will be introduced meaning all worldwide income and gains will be subject to UK tax. However, a four-year relief period will be granted to new arrivals to ease the transition.

This change provides non-doms with a limited-time opportunity to remit foreign income and gains to the UK at a more favourable rate (12%), encouraging the reinvestment of global wealth into the domestic economy.

Inheritance Tax (IHT) rules based on residence

  • Current system: IHT is determined by domicile status, with UK-domiciled individuals liable for IHT on worldwide assets and non-dom individuals liable for IHT on UK assets only.
  • Proposed new system (from 6 April 2025): IHT liability will be based on residence rather than domicile. A new provision extends the scope of IHT to non-doms who have moved abroad, applying a 10-year window of liability. This measure ensures continued fiscal responsibility for those with substantial ties to the UK, even after they have relocated.

Trusts and Non-UK Assets

  • Current system: Under current rules, UK non-doms can establish excluded property trusts to shelter non-UK situs assets from UK IHT. These trusts have provided a means of protecting assets from IHT, thus serving as an essential tool for estate planning and asset protection.
  • Proposed new system: The Treasury has indicated potential grandfathering provisions for existing excluded property trusts. This potenitially means that trusts established before a specific date could retain their excluded property status, thereby exempting non-UK situs assets from IHT[2].

Settlor-Interested Trusts

  • Current system: These trusts often offer tax advantages to non-domiciled individuals.
  • Proposed new system: The preferential tax treatment for settlor-interested trusts will be gradually phased out, potentially leading to further tax obligations for settlors.

Strategic considerations for HNWIs and UHNWIs

With these updates, it’s crucial for non-domiciled HNWIs and UHNWIs to engage proactively with their advisors to navigate the evolving tax landscape and future proof wealth planning.

While the new government maintains continuity in many aspects of the non-dom tax regime, the introduction of specific measures marks a decisive shift towards a more inclusive and accountable tax system. Non-doms, particularly HNWIs and UHNWIs, must remain vigilant and informed to effectively manage their tax obligations and financial planning strategies.

Belasko’s proactive scenario-based analysis

At Belasko, we’re already proactively supporting our clients with scenario-based analysis to ensure they’re prepared and ready for any potential taxation impacts that will be put in place after the 30th October.

The scenario planning includes the mapping and analysis of a client’s investment universe, stress testing them against the potential changes that could be implemented by the UK government. This provides our clients with intuitive, cost-benefit analytics upon which families and their advisers can make informed decisions.

We’re experienced when it comes to optimising wealth across jurisdictions and generations and are ahead of the curve when it comes to navigating potential new tax and regulatory barriers.

Our private client directors all have 20+ years of extensive experience, leading a frontline administration and accounting service delivery team. We hold strong relationships with leading legal and tax advisors and deliver tailored solutions, while being truly dedicated to delivering client service excellence.

If you’d like to discuss how we can help you navigate new waters as a result of the new UK government, get in touch with Andy Bailey ([email protected]).

[1] https://www.gov.uk/government/publications/2024-non-uk-domiciled-individuals-policy-summary/changes-to-the-taxation-of-non-uk-domiciled-individuals#:~:text=The%20government%20envisages%20that%20the,scope%20for%2010%20years%20after

[2] https://www.gov.uk/government/publications/2024-non-uk-domiciled-individuals-policy-summary/changes-to-the-taxation-of-non-uk-domiciled-individuals#:~:text=The%20government%20envisages%20that%20the,scope%20for%2010%20years%20after

Maximising Wealth Management: The Advantages of Using the Channel Islands for Private Trust Companies

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Recent legislative changes have made private trust companies (PTCs) in Jersey and Guernsey increasingly attractive and easier to establish. PTCs are particularly appealing to families who appreciate the use and flexibility of trusts but prefer to retain more clearly defined powers. These powers can be exercised by the board of directors of the PTC, rather than relying on individual or institutional trustees with whom they may not have had a prior relationship.

PTCs have become increasingly popular among high-net-worth private clients as they often prefer to establish their own PTC to act as the trustee of their family trusts, rather than transferring assets to an offshore professional trustee company. Andy Bailey, Belasko’s head of private wealth, explores the advantages and potential issues of utilising Jersey and Guernsey as hubs for PTCs.

  1. Control: Trustees must act in accordance with the terms of the trust deed and comply with governing legislation. Often, trustees have wide discretionary powers in the administration of trust assets. Typically, the trustee is a professional corporate entity, potentially remote from the family. A PTC enables family members or trusted advisers to participate directly by sitting on the board or as consultants and advisers. This structure allows the family to retain greater influence over the management of trusts through the PTC than they might otherwise have.
  2. Transferability: Having a PTC as the trustee of family trusts avoids the need for future changes of trusteeship. Instead, only the management agreement between the PTC and the licensed administrator needs to be terminated and a new agreement entered into with a new licensed administrator. The previous licensed administrator’s PTC directors (if any) would then cease to be on the board of the PTC.
  3. Confidentiality: Ownership of the PTC structure can remain confidential when structured with the use of, for example, a purpose trust. This level of confidentiality is particularly appealing to HNWIs and families seeking discretion in their financial affairs.
  4. Trustee Liability: Professional trustees are always aware of their liability and the risk of being sued by beneficiaries or third parties. As a result, they are often reluctant to take ownership of assets or participate in ventures with substantial risks. PTCs, due to the composition of their boards, can provide for riskier investments to be included in the structure, offering greater flexibility and opportunity.
  5. Philanthropy: PTCs can make confidential philanthropic payments while ensuring the person managing the structure understands the thought process behind supporting such causes. This ability allows families to support charitable initiatives discreetly and effectively.
  6. Flexibility: A PTC is likely to be more flexible and quicker in dealing with trust assets. The direct involvement of family members or trusted advisers can expedite decision-making processes and adapt more readily to changing circumstances.
  7. Legal and Regulatory Framework: Both Jersey and Guernsey boast well-developed legal systems and stringent regulatory frameworks providing familiarity and reliability for trust structures. In addition, the trust laws in the Channel Islands are among the most advanced globally. They allow for a variety of trust structures, including discretionary trusts, reserved power trusts, and purpose trusts. This flexibility enables the tailoring of trusts to meet specific needs, whether for succession planning, asset protection, or charitable purposes.
Potential Issues
  • Management and Control: The residency of a trust typically depends on where it’s administered and where the majority of trustees are resident. It’s crucial that the PTC isn’t considered resident in an unfavourable jurisdiction, as this could lead to the trusts being deemed resident there, resulting in adverse tax consequences. To avoid this, most of the directors should be in the jurisdiction where the PTC has its registered office. Additionally, directors must properly discharge their duties, understand their roles, actively participate in meetings, and be aware of the company’s business.
  • The Sham Argument: To prevent the structure from being attacked as a sham, there must be clear evidence that the settlor and the PTC intended to establish a legitimate trust structure. This structure should be managed as such, with proper documentation and administration. Using a licensed administrator to oversee the general administration of the PTC and its underlying trusts can help mitigate the risk of a sham accusation.
  • Liability of Directors: Directors of PTCs have a duty to act in the best interests of the company. If they breach this duty, the general rule is that their obligations are owed to the company, not the shareholders. Consequently, the company would need to take action against the directors.

Jersey and Guernsey are growing in popularity as strategic locations for establishing and managing PTCs. Both jurisdictions offer an unparalleled environment, for high-net-worth individuals and families, that supports the growth, protection, and smooth transfer of wealth across generations.

At Belasko, our team provides the professional, personalised support that’s needed to manage the needs of HNWIs, families and entrepreneurs. Drawing on many years’ experience, we offer tech-driven, optimised wealth solutions across a range of jurisdictions and generations. If you’d like to learn more about how we can help with establishing a PTC in the Channel Islands, get in touch with Andy Bailey at [email protected].

Belasko appoints new Group Head of Marketing

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Belasko is pleased to announce the expansion of its leadership team with the appointment of Alice Heald as Group Head of Marketing.

In her new role, Alice will leverage her extensive 10+years of financial services marketing experience to spearhead strategic marketing initiatives across Belasko’s core markets.

“We’re delighted to welcome Alice to our team,” said Ross Youngs, Chief Commercial Officer at Belasko. “We’re setting our sights on ambitious growth goals in the coming years and now, with Alice on board, she can lead the charge in strengthening our marketing strategy, pushing boundaries and elevating the Belasko brand to new heights”.

Prior to her role at Belasko, Alice has worked at companies including SS&C Technologies and Intertrust Group (now CSC), where she’s gained invaluable insights and experience into executing bespoke marketing campaigns tailored to the private capital funds and financial services sectors.

On her appointment, Alice said: “I’m thrilled to be joining the team at such an exciting time of rapid growth, change and evolution for this business. I’m here to challenge the status quo, redefine the way we do things and be bigger and bolder in our approach to really set ourselves apart from the masses. Most of all, I’m excited to be a driving force of growth and innovation that will help take Belasko to the next level. Let’s get started!”

Belasko sponsors BVCA Accelerate conference

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Belasko is proud to sponsor the BVCA Accelerate conference, taking place across 21-22 May 2024.

The two-day conference will cover key industry topics, including angel investors, venture and growth equity.

With the opportunity to connect with a wide range of other industry professionals, the conference promises two days of sessions covering the latest thinking on geopolitical economy and politics, cutting-edge technology, diversity, ESG, and more.

If you plan to attend the event and would like to meet our team, get in touch with our Group Commercial Director, Ross Youngs, to set up a meeting.

Contact Ross via email: [email protected].

Find out more about the conference here: https://www.bvca.co.uk/Calendar/Event-Details/DateId/2649

Belasko appoints new Associate Director in Guernsey

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Belasko continues the growth of its senior leadership team with the appointment of Alex Le Prevost as Associate Director.

In his new role, Alex will utilise his 18 years of experience in the private wealth sector and oversee the Guernsey fiduciary team and drive growth initiatives within the business. 

Andy Bailey, Group Head of Private Wealth at Belasko, said: ‘We are pleased to welcome Alex to the team. We look forward to supporting him drive new initiatives and continue the business’ chapter of growth across all jurisdictions of operation. His experience and knowledge of off-island markets complements our existing team.’ 

Alex has a strong background in the South African market and is eager to share his knowledge of client relationships with the team.  

On his appointment, Alex said: ‘I’m very excited for the opportunity to be a part of Belasko’s exciting future and join what is already an energised senior management team. I look forward to working across our jurisdictions to continue delivering excellent client services.’

Belasko acquires Jersey-based family office

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Belasko has acquired Jersey-based family office business, BKS Family Office Limited, to complement and expand Belasko’s existing family office and private wealth offering.

The deal increases the experience and capacity across the group in Jersey, Guernsey, Luxembourg and the UK.

Paul Lawrence, Group Managing Director at Belasko, said: ‘We’re delighted to have come to this agreement with BKS which will build the scale of our operating model in Jersey whilst continuing to deliver outstanding client service. The acquisition of BKS delivers critical scale to our Jersey business but also enhances our private wealth and family office services across all of our operating jurisdictions. This acquisition cements our commitment to Jersey and our continued innovation in the family office sector.’

Chris Bevan, Managing Director at BKS, added, ‘We were looking for the right partner to help BKS in the next chapter of its growth whilst supporting succession goals for our leadership team. The personal relationships with Paul and the entire Belasko team gave us the confidence that we could do this whilst continuing to look after our clients and all members of the team.’

The combined Jersey business will relocate to the existing BKS offices on New Street with 35 highly experienced private wealth practitioners, another milestone for the Belasko Group.

The Future of Family Wealth

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Andy Bailey, Head of Fiduciary at Belasko

A recurring theme of WE ARE GUERNSEY’s 2022 Private Wealth Forum was that Guernsey is a safe harbour for private wealth. It’s a stable jurisdiction with a stable government and legal system, and first-class financial services.  

With ongoing economic, social and political tensions, the island is a calm port in a storm. With so much uncertainty, Guernsey can bring a high degree of comfort and security to international families looking for a service provider in a stable jurisdiction that can look after their best interests.  

This sentiment is reflected in the enquiries that we’re getting at Belasko. We have clients who have structures in Caribbean jurisdictions, for example, who are now struggling to bank those structures, so they are looking to migrate those companies into the Channel Islands. They are moving to different administrators in a jurisdiction with a positive profile and global regulatory bodies such as FATF and OECD, which have good links to the banking and investment intermediary market. This point was echoed by the panel at the Private Wealth Forum.   

Another key theme the panel discussed was how families bring the second generation into succession, investment, ESG, philanthropy and family governance discussions. The traditional model of a matriarch or patriarch keeping tight reins on wealth management, distribution and succession is gradually being replaced with a more open approach. 

What we are seeing much more now is that families want to get the next generation involved earlier. Sophie Ward, Head of Charities & Education at HSBC, agreed, explaining that implementing good governance earlier helped to mitigate the risk of disputes.   

I’d agree; disputes often arise when the matriarch or patriarch passes away and the younger family members, all with different viewpoints, visions of wealth solutions and causes close to their hearts, start to get involved in decisions and discussions about how the family’s assets should be maintained and/or distributed.  

We encourage early involvement from the wider family on the vision for the family wealth. When this happens, there is a greater chance of asset transfer through the generations.   

This increasing next-gen involvement also ties into a great ambition amongst high-net-worth families to have a clear purpose for their money. As a result, wealth creators are now looking more closely at what impact they want their money to have in the long term.   

Having a clear vision is very important. Involving the younger family members in formulating that vision is more commonplace, which is another reason we see more involvement in ESG-type initiatives and philanthropy. So, it’s essential to have a flexible structure so that it can be utilised for any of those family ambitions.   

We find that the second and third generations are highly educated; they want to be more involved and make a positive impact on the world.    

Another key trend picked up by the panel at the Private Wealth Forum was technology. We’re already seeing more interest in investments in FinTech initiatives, whether digital assets or the financial technology services market.  

Belasko’s technology solutions are designed to make our clients’ lives easier. We are their eyes and ears; we’re there to help them take the friction and stress out of their life by being a point of reference for them.  

Our clients know that we’ve got the day-to-day management of their wealth covered for them, and they can concentrate on strategic investment decisions and the wider purpose and legacy of their investments.  

Astronaut Tim Peake started the session by discussing how people work together as a team to achieve a common objective. The theme of people working towards a shared goal continued throughout the afternoon, and Russell Clarke of Carey Olsen closed the session by saying: ‘What sets Guernsey apart is its people.’ It was clear from the panel’s discussions that Guernsey’s high calibre of professionals is one reason the island is seen as a leading financial services centre.   

Families are turning to a variety of structures to preserve, enhance and transfer wealth to future generations. From traditional trust and private trust company (PTC) arrangements to family investment companies (FICs) and private investment funds (PIFs), Belasko has experience in a wide variety of structures and family scenarios and will be happy to discuss the best option with families and their advisers. 

If you’re interested in finding a bespoke approach to wealth management, contact Andy on: [email protected] or find more information on Belasko’s offering here: https://www.belasko.com/private-wealth/