The End of Bank Secrecy? An Evaluation of the G20 Tax Haven Crackdown

During the financial crisis, G20 countries compelled tax havens to sign bilateral treaties providing for exchange of bank information. Policymakers have celebrated this global initiative as the end of bank secrecy. Exploiting a unique panel dataset, we study how the treaties affected bank deposits in tax havens. Most tax evaders, our results suggest, did not respond to the treaties. A minority responded by transferring deposits to havens not covered by a treaty. Overall, the G20 tax haven crackdown caused a modest relocation of deposits between havens but no significant repatriation of funds: the era of bank secrecy is not over.

Working Paper, January 2012

ESMA outlines future regulatory framework for ETFs and other UCITS issues

ESMA publishes today a consultation paper (ESMA/2012/44) setting out future guidelines on UCITS Exchange-Traded Funds (UCITS ETFs) and other UCITS-related issues. The proposals cover both synthetic and physical UCITS ETFs and detail the obligations to come for UCITS ETFs, index-tracking UCITS, efficient portfolio management techniques, total return swaps and strategy indices for UCITS.

ESMA’s proposals therefore go wider than ETFs and cover such areas as the use of total return swaps by any UCITS, for which ESMA envisages additional obligations with respect to the collateral to be provided, or UCITS investing in strategy indices, where the requirements on eligibility of such indices have been tightened. The proposals also include placing an obligation on UCITS ETFs to use an identifier and facili-tating the ability of investors to redeem their shares, whether in the secondary market or directly with the ETF provider.

SEI Selected By Monsoon Capital To Provide Outsourcing Services For Newly-Launched UCITS Fund

SEI announced today that it has been selected by Monsoon Capital, a U.S.-based alternative asset manager focusing on emerging markets, to provide full fund administration and trustee and custodial services for the firm’s UCITS IV fund.

Given Monsoon’s systematic and quantitative trading approach, SEI’s technology, which delivers a straight-through, automated process for trade reconciliation, was a key factor in the manager’s decision to select SEI. Monsoon will also receive comprehensive data management, performance, and risk reporting via SEI’s Manager Dashboard. The online tool provides Monsoon with the flexibility to tailor reporting to better support the firm’s unique business decision-making process.

SEI’s comprehensive outsourcing solution encompasses fund administration, accounting, investor servicing, and Irish trustee and custody services. SEI’s systems provide aggregated views of data across multiple product lines from the fund or portfolio level down to the investment security level, and are accessible 24/7 via the web. The scalability and adaptability of SEI’s solutions allow for the long-term, consistent support of Monsoon’s requirements as they evolve.

Philip Masterson, Senior Vice President and Head of Business Development, Europe, within SEI’s Investment Manager Services division, commented:

“SEI has the technology, expertise, and track record to support high-frequency trading in a controlled environment, thereby reducing managers’ business risks. Some clients’ trading volume reaches peaks of 120,000 trades a day, and Monsoon found our process compelling. By providing automated and scalable technology from trade entry through back-end reconciliation, we enable Monsoon to focus on managing investments and creating a better experience for its investors.”

Gautam Prakash, Founder and Senior Managing Director of Monsoon Capital, added:

“SEI stood out for us as a strong partner due to its independence as an administrator, the quality of its technology, and its ability to provide flexible and tailored reporting to support our specific needs. We very much look forward to working with SEI as we continue to grow our asset base and add new alternative strategies in the UCITS format.”

Vodafone Special Focus

International Tax Review provides you will full coverage of the Vodafone Indian Supreme Court judgment, what it means for your business, key lessons to take from the ruling, and how to avoid becoming the next target of the Indian Tax Department.

Download report

IoM FSC: Consultation on proposals to amend the Financial Services Act and Collective Investment Schemes Act

The Isle of Man Financial Supervision Commission has published a consultation seeking views on a draft Financial Services (Miscellaneous Amendments) Bill that will amend the Financial Services Act 2008 and Collective Investment Schemes Act 2008.

Comments on proposals are welcomed from all interested parties – in particular those who may be affected by proposals.

The consultation is open until 23 March 2012.

Mauritius: FSC launches Global Business Guide

A Global Business Guide aimed at facilitating and improving the licensing process for global business application was launched yesterday by the Financial Services Commission (FSC) at its seat in Ebène.

Present on the occasion, the Vice-Prime Minister and Minister of Finance and Economic Development, Mr Xavier-Luc Duval, reiterated Government's full commitment to the financial services industry. According to him, the financial services has become one of the country's success stories which has resulted in the creation of some 2 200 jobs and with nearly 28 000 global business companies operating in this sector with a yearly turnover of around Rs 5 billion. Mr Duval said that the Government is working closely with the FSC and the Board of Investment to increase Mauritius' visibility on the international financial market by maintaining the country's clean financial reputation.

As regards the economy, Vice-Prime Minister Duval cautioned that the Mauritian economy will be affected with the gloomier outlook of the world economy in the wake of the financial crisis especially in Europe where a lower growth rate than forecasted that is, 0.3% instead of 1.8%, has been registered. In view of this situation, Mauritius is revising its growth rate forecasts, he said.

For her part the Chief Executive of the FSC, Ms Clairette Ah-hen, recalled that the global economic crisis has intensified the debate about the role of International Finance Centres. The challenge for the financial service in Mauritius, she said, is to ensure that its regulatory standards are at par with the international standards and that its reputation is not infringed by identification with financial crime. The Global Business guide will serve as a working tool which will be updated as and when new processes are introduced, she added.

The Global Business Guide provides guidance to investors and service providers with a proper understanding of the requirements for applying for a global business license as well as to remove bottlenecks in the application processes. It also aims at contributing to enhance the competitiveness of Mauritius as an international financial centre of substance.

JFSC: Register of Recognized Auditors

The Register can be viewed by clicking here

Jersey introduces new scheme to enhance its fund regime

Jersey has extended its funds regime through the introduction of the Private Placement Fund to widen the choice available to investors.

Private Placement Funds are closed ended funds available to a limited number of sophisticated institutional or professional investors. Similar in scope to the existing COBO (Control of Borrowing Order) private funds, the new fund offering is designed for ‘fast track’ approval, usually within three business days.

Private Placement Funds will sit within the COBO framework and will complement the existing Expert Fund regime which also provides a streamlined approval process and has helped position Jersey as a leading European centre for alternative funds business.

Geoff Cook, chief executive, Jersey Finance Limited, commented:

“Even in these testing economic conditions, Jersey has seen increasing levels of business in the alternative funds sector during 2011 and our latest figures show 10.5% year on year growth in the net asset value of funds being administered in Jersey.

“With Jersey’s funds industry already well positioned to secure alternative funds business and with signs of further growth evident, it is an appropriate time to offer an even wider choice of sophisticated fund vehicle to meet international demand. The introduction of the Private Placement Fund scheme demonstrates that Jersey is determined to not only remain competitive in the funds arena but will also continue to provide innovative solutions within its range of fund services.”

He added: “Industry representatives led by Mike Lombardi at Ogier and Ben Robins at Mourant Ozannes have consulted closely to help fashion this new fund regime, taking into account the evolving needs of international investors and the changing nature of global regulation.”

Key features are:

• The fund is restricted to less than 50 sophisticated, professional investors
• It is closed ended and has a minimum investment or commitment level of £250,000 or currency equivalent
• A fast track approval process is available provided that the offer document conforms to the applicable content rules and sponsors meet the suitability requirements contained within the Private Placement Fund guide
• Each Fund requires a mandated licensed Jersey administrator approved by the Jersey Financial Services Commission
• The Offer Document is obliged to include an appropriate form of investor warning.

Jersey will continue to operate its COBO regime also for those specialist private funds which do not fall within the scope of the new Private Placement offer. The new Private Placement Fund is effective and available to investors from Thursday, January 26.

Nigel Strachan, Chairman of the Jersey Funds Association, added:

“Jersey’s funds industry, together with the Jersey Financial Services Commission, has been working really hard to create this new Private Placement funds regime, so it’s excellent news that it can now be unveiled. Specifically geared towards limited numbers of professional or sophisticated investors, this flexible regime will offer, provided the fund satisfies certain conditions, a fast track, streamlined authorisation process that we believe will add to the strength and range of fund products in Jersey and provide speed and certainty to launch for investors – essential in today’s market, where arrangers need to react quickly to new market opportunities. With its appropriate regulatory oversight, we expect the regime to be attractive across the alternative asset classes, including real estate, private equity, mezzanine, cleantech and emerging market funds.”

Jersey launches Private Placement Fund

The Jersey Financial Services Commission (the "Commission") has today published a Guidance Note on a new Private Placement Fund product that will be given consent under the Control of Borrowing (Jersey) Order 1958.

The Private Placement Fund will be aimed at professional and sophisticated investors and approved on a fast track streamlined authorisation process – developed in consultation with the Jersey Funds Association and Jersey Finance.

The streamlined authorisation process will be achieved through a self certification application by the Designated Service Provider to the Fund who is registered as a Fund Administrator under the Financial Services (Jersey) Law 1998.

The Commission’s Director General, John Harris, said, “The Jersey Private Placement Fund is a significant new business opportunity for Jersey. The Funds Industry has identified a need for a private fund product aimed at professional and sophisticated investors where speed to market is critical. The self certification process is a new approach for the Commission and requires our registered Fund Administrators to certify to the Commission that the promoters of the Private Placement Fund are of good standing.

It will be possible to issue consent within 72 hours on receipt of a complete application subject to the application meeting the criteria set out in the Jersey Private Placement Fund Guide.”

Principales dispositions de la législation fiscale à l'île Maurice

I - L'IMPOT SUR LES SOCIÉTÉS

A. Imposition des sociétés résidentes

1) Territorialité

Les sociétés résidentes de l'île Maurice sont imposables sur leur bénéfice mondial, comprenant les résultats des établissements stables à l'étranger.

Sont considérées comme résidentes de l'île Maurice les sociétés créées dans cet Etat ou qui y ont leur siège de direction ou de contrôle.

Les sociétés non résidentes de l'île Maurice sont soumises à l'impôt dans cet Etat à raison de leurs bénéfices de source mauricienne.

Les sociétés précédemment dénommées « Offshore Companies », actuellement désignées sous le terme de « Category 1 Global Business Licence companies (GBC1) » sont désormais soumises à l'impôt de droit commun. Depuis 2010, elles sont autorisées à exercer une activité sur l'île Maurice, à être en relation d'affaires avec des résidents de l'île Maurice ou avec des « Category 2 Global Business Licence companies (GBC2) » (voir ci-après) et à détenir des participations dans des sociétés résidentes de l'île Maurice. Ce sont généralement des sociétés holdings d'investissement.

En revanche, les « Category 2 Global Business Licence companies (GBC2) », anciennement dénommées « International Companies », ne sont pas considérées comme résidentes de l'île Maurice et ne peuvent bénéficier de son réseau conventionnel. Les GBC2 sont exonérées d'impôt sur l'île Maurice. Elles ne sont pas autorisées à être en relation d'affaires avec des résidents de l'île Maurice ou à détenir des comptes bancaires en roupies mauriciennes.

2) Taux d'imposition

Le taux d'imposition est de 15 % depuis le 1er juillet 2008.

Un impôt minimum doit être acquitté lorsque l'impôt sur les sociétés dû est inférieur à 7,5 % du bénéfice comptable de l'exercice. Le montant de l'impôt est égal à 7,5 % du bénéfice comptable ou à 10 % des dividendes déclarés pour l'exercice si ce dernier montant est inférieur à 7,5 % du bénéfice comptable. L'impôt minimum n'est pas dû par les GBC1, les sociétés exonérées et celles qui n'ont pas distribué de dividendes au cours de l'exercice.

Depuis le 1er juillet 2007, les banques sont redevables d'une taxe spécifique, égale à 3,4 % de leur bénéfice comptable et à 1 % de leur profit d'exploitation. A compter du 1er janvier 2012, les taux seront respectivement de 1,7 % et 0,5 %.

Les opérateurs de télécommunications sont redevables d'une taxe de solidarité égale à 5 % de leur bénéfice comptable et à 1,5 % de leur chiffre d'affaires pour les années 2009, 2010 et 2011.

3) Produits exonérés

Sont exonérés :

• les bénéfices perçus par certaines entités telles que les fonds d'actions, les GBC2, les trusts, les entités charitables et certaines organisations internationales ;
• les dividendes distribués par une société résidente ou une société coopérative ;
• les dividendes distribués par les GBC2 ;
• les plus-values de cession d'actifs autres que les actifs immobiliers.

B. Imposition des sociétés non résidentes

1) En présence d'un établissement stable

Les bénéfices réalisés par les établissements stables de sociétés non résidentes sont imposés au taux de droit commun de l'impôt sur les sociétés (15 %) à raison de leurs bénéfices de source mauricienne.

2) En l'absence d'établissement stable

Les dividendes ne sont pas soumis à imposition.

De même, tout paiement effectué par une GBC2 est exonéré d'impôt (redevances, intérêts, loyers...).

Les intérêts reçus pas les non résidents doivent faire l'objet d'une déclaration et sont soumis à l'impôt de droit commun au taux de 15 %. Par exception, sont exonérés :

• les intérêts versés par une société GBC1 à un non résident n'exerçant pas d'activité industrielle ou commerciale sur l'Ile Maurice ;
• et les intérêts versés à un non résident par une banque agréée, en application de la Loi sur les Banques de 2004, dans la mesure où les intérêts ou redevances proviennent de bénéfices tirés de relations bancaires avec des non résidents ou des GBC1.

Les redevances non exonérées sont imposées par voie de retenue à la source au taux de 15 % libératoire de l'impôt sur les sociétés. Sont exonérées :

• les redevances versées à un non résident par une GBC1 dès lors que ces intérêts sont tirés des revenus de source étrangère de la GBC1 ;
• les redevances versées à un non résident par une banque agréée en application de la Loi sur les Banques de 2004 dans la mesure où les intérêts ou redevances proviennent de bénéfices tirés de relations bancaires avec des non résidents ou des GBC1 ;
• et les redevances versées par les trusts.

C. Incitations fiscales

Le 1er juillet 2006, la plupart des incitations fiscales ont été supprimées.

Toutefois, en application de la loi de finances pour 2010, les sociétés opérant dans les zones franches de l'île Maurice (Mauritius Freeport) bénéficient d'une exonération d'impôt jusqu'au 31 décembre 2013.

Par ailleurs, les petites entreprises et entreprises artisanales peuvent bénéficier d'une exonération d'impôt durant quatre exercices.

II - L'IMPOT SUR LE REVENU

A. Impôt sur le revenu des personnes physiques résidentes

1) Territorialité

Les personnes physiques résidentes de l'île Maurice sont redevables de l'impôt mauricien à raison de leurs revenus de source mondiale. Les personnes non-résidentes sont imposables dans cet Etat à raison de leurs revenus de source mauricienne.

Les personnes résidentes sont celles qui ont résidé à l'île Maurice pendant plus de six mois au cours de l'année fiscale ou au moins 270 jours cumulés pendant l'année fiscale en question et les deux années précédentes.

2) Revenus exonérés

Sont exonérés d'impôt les dividendes distribués par les sociétés mauriciennes, les intérêts de dépôt bancaire et d'épargne ainsi que les plus-values de cession de biens.

Par exception, le budget 2011 a introduit :

• une imposition au taux de 10 % des plus-values de cession de biens immobiliers au-delà d'un montant exonéré de 2 millions de roupies;
• une taxe de solidarité au taux de 10 % sur les intérêts et dividendes exonérés pour les particuliers dont les revenus (revenus exonérés compris) excèdent 2 millions de roupies.

3) Taux d'imposition des revenus

Le taux de l'impôt est de 15 %.

B. Impôt sur le revenu des personnes physiques non résidentes

Les personnes physiques non résidentes sont redevables de l'impôt sur le revenu à raison de leurs revenus de source mauricienne au taux de droit commun (15 %). L'impôt est prélevé par voie de retenue à la source libératoire (au taux de 15 % également) pour les intérêts et redevances. Les dividendes ne sont pas soumis à imposition.

L'impôt sur la fortune et les droits de mutation à titre gratuit n'existent pas sur l'île Maurice.

IMF: Statement at the Conclusion of the 2012 Article IV Consultation Mission to Mauritius

An International Monetary Fund (IMF) mission led by Martin Petri visited Port Louis during January 11–25, 2012 to conduct the discussions for the Article IV consultation with Mauritius. The mission met with The Honorable Prime Minister Dr. Navinchandra Ramgoolam, The Honorable Vice Prime Minister and Minister of Finance and Economic Development Xavier-Luc Duval, Governor of the Bank of Mauritius Rundheersing Bheenick, other senior government officials, as well as representatives of the National Assembly, the private sector, and civil society.

At the conclusion of the visit, Mr. Petri issued the following statement today in Port Louis:

“The Mauritian economy has performed reasonably well in 2011 with real growth at market prices estimated at 4.1 percent. This reflects in part the authorities’ long record of prudent macroeconomic policies and their comprehensive policy response to the ongoing global crisis. The challenge for 2012 and beyond will be to maintain growth through increased public and private investment and productivity advances, while continuing medium-term fiscal consolidation to reduce economic vulnerabilities. Taking account of the slowdown in the world economy and a moderately expansionary fiscal stance, economic growth is projected to decline moderately to somewhat less than 4 percent in 2012.

“The recent developments in inflation are mainly due to administered prices and one-time exogenous factors that should not result in sustained inflationary pressures with the appropriate monetary policy response and wage restraint. Year-on-year inflation in 2012 is expected to be 5 percent. The monetary policy stance appears broadly appropriate at this time with future rate adjustments depending on economic developments. The Bank of Mauritius (BOM) had to remove excess liquidity from the market during 2011 with negative effects on its income position, a situation likely to persist in 2012 and that is necessary from a macroeconomic perspective. Coordination between BOM policies and the government’s financing strategy should contribute to a smooth operation of the money and debt markets. The banking sector appears robust, and the financial system has proved resilient.

“With the 2012 budget, the government intends to keep Mauritius on a sustained growth path. Compared to 2011, the overall fiscal deficit is projected to increase mainly on account of capital investment and spending from special funds. Implementation constraints could result in lower than intended spending as happened during 2011. With a small output gap estimated for Mauritius in 2012, the mission recommends a cautiously expansionary fiscal stance with careful execution of capital spending, tight financial controls on public enterprise finances, and improvements in the targeting of social benefits. The authorities’ medium-term fiscal consolidation plans are welcome to reduce fiscal and external vulnerabilities.

“Structural reforms implemented steadily over the years have contributed to raising Mauritius’ competitiveness, but more can be done to raise standards of living further. Maintaining the reform momentum to (i) reduce critical structural bottlenecks in infrastructure; (ii) build human capital through education; (iii) improve the targeting of social benefits; and (iv) to reform the parastatal sector will further strengthen Mauritius’ ability to compete in the world economy, including as an international financial and services center.

“The IMF stands ready to assist the authorities in the implementation of their economic program, including through the provision of technical assistance, and looks forward to continued fruitful policy dialogue in the period ahead.”

Mauritius: Presentation of the Global Business Guide

The Global Business (‘GB’) Guide was presented at the FSC House on 25 January 2012 in the presence of the Hon. Xavier-Luc Duval, G.C.S.K, MP, Vice-Prime Minister, Minister of Finance and Economic Development. Mr. Duval highlighted in his address that the GB Guide “is an important tool to ensure greater compliance and the smooth process for the creation Global Business Companies”. The Minister of Finance commended FSC’s initiative and the effective collaboration between the regulator and industry partners to promote the sector.

He spoke on the importance of creating more substance in the financial services sector to consolidate the position of Mauritius as a gateway for investment into Africa. Mr. Duval also stressed the need for the Mauritius IFC to establish more substance, and the role of all the different partners of the sector to ensure the safeguard of the reputation of the Mauritius as a clean jurisdiction.

Ms. Clairette Ah-Hen, the Chief Executive of the FSC explained in her welcoming address the main objectives of the GB Guide which are to:

• provide guidance to investors and service providers;
• remove bottlenecks to the application process;
• strengthen the continuous and efficient collaboration between the FSC and Management Companies; and
• contribute to enhancing the competitiveness of Mauritius as an international financial centre of substance and as a preferred destination for starting a business

She said that the Guide is a dynamic working tool which will be updated as the FSC develops new products, improves its processes. Ms. Ah-Hen also announced that that training sessions and seminars will be conducted for industry partners to ensure common standards of practice. The Chief Executive stressed the importance of joint efforts between the industry and regulator for a smooth implementation of the process and concluded: “I am convinced that 2012 will see a fruitful collaboration between the FSC and the Industry as well as with other stakeholders”.

India: Post Vodafone verdict, government to clamp down on Mauritius deals

The Economic Times:

Rattled by its defeat in a $2.2-billion tax dispute with Britain's Vodafone Group, the government is examining the possibility of scrapping a rule that makes it incumbent upon India's tax authority to recognise so-called the tax residency certificates (TRCs) issued by the Mauritius tax office. The TRC is considered to be proof that an investor is a resident of Mauritius and thus entitled not to pay capital gains tax under the Indo-Mauritius tax treaty.

Vodafone Indian Supreme Court judgment

Read the full ruling here

PwC India: Removing the fences - Looking through GAAR

General Anti-avoidance Rule (GAAR) is a concept which generally empowers the Revenue Authorities in a country to deny the tax benefits of transactions or arrangements which do not have any commercial substance or consideration other than achieving the tax benefit. Denial of tax benefits by the Revenue Authorities in different countries, often by disregarding the form of the transaction, has been a matter of conflict between the Revenue Authorities and the taxpayers. Traditionally, the principles regarding what constitutes an impermissible tax avoiding mechanism have been laid down by the Courts in different countries, with a series of decisions of the English Courts starting from the Duke of Westminster’s case. In India also, the ruling of the Supreme Court in McDowell’s case was a watershed. This ruling itself has been interpreted by different courts including the Supreme Court in various subsequent decisions. In its recent ruling in the famous Vodafone case, the Supreme Court has stated that GAAR is not a new concept in India as the country already has a judicial anti-avoidance history.

Removing the fences - Looking through GAAR

Mauritius: Limited Partnerships - Application for a Category 1 Global Business Licence

The Financial Services Commission (the “Commission”) has issued a Circular Letter following the enactment of the Limited Partnerships Act 2011 (the “LPA”).

The Circular Letter sets out the requirements for Limited Partnerships applying for a Category 1 Global Business Licence (“GBL 1”) pursuant to section 71 of the Financial Services Act 2007 (the “FSA”).

1. Registered Agent

According to Section 2 of the LPA, registered agent includes a Management Company, where the Limited Partnership holds a GBL 1. In this respect, the Commission shall require that a Limited Partnership holding a GBL 1, maintains at all times, a Management Company as its registered agent.

2. Conduct of Global Business

It is to be noted that Section 71 (1) of the FSA allows a Limited Partnership to apply for a GBL 1. In considering such an application, the Commission shall have regard to whether the conduct of business will be or is being managed and controlled from Mauritius in accordance with Section 71 (4) (a) of the FSA.

In relation to a Limited Partnership applying for a GBL 1, the Commission shall have regard to whether -

(a) at least one Partner of the Limited Partnership is:

(i) resident in Mauritius, where the partner is a natural person; or

(ii) incorporated, formed or registered under the laws of Mauritius, where the partner is not a natural person;

(b) the Registered Agent of the Limited Partnership is resident in Mauritius;

(c) the Limited Partnership will maintain or maintains at all times its principal bank account in Mauritius;

(d) the Limited Partnership will keep and maintain or keeps and maintains, at all times, its accounting records at its registered office in Mauritius; and

(e) the Limited Partnership prepares or proposes to prepare its statutory financial statements and causes or proposes to have such financial statements to be audited in Mauritius.

3. CDD Requirements for Limited Partnerships

Management Companies have the obligation to undertake effective customer due diligence (CDD) measures, and risk profiling procedures when establishing business relationships and throughout such relationships (the obligation being a continuing one). When an Applicant for Business is a Limited Partnership registered under the LPA, the Management Company must identify and verify the identity of the principals or proposed principals of the Limited Partnership, i.e. the General Partner(s) and the Limited Partner(s).

3.1 Submission of documents

3.1.1 Documents to be submitted for the application of a GBL 1

When a Limited Partnership is applying for a GBL 1, the Management Company must submit the following documents to the Commission:

(a) the Partnership Agreement;

(b) CDD Documents on the General Partners, and CDD documents on the significant Limited Partners of the Limited Partnership;

(c) documents as provided under Rule 12 of the Financial Services (Consolidated Licensing and Fees) Rules 2008; and

(d) any other documents as may be required by the Commission.

3.1.2 In addition, where the Limited Partnership holds another Licence under any of the relevant Acts, it shall comply with the requirements set out in the respective relevant Acts.

Air France and Air Mauritius extend their partnership in the Indian Ocean

Starting on 1st February 2012, Air France will be commercializing daily flights operated by Air Mauritius under an Air France flight number between the two airports in Reunion Island (Saint-Denis and Saint-Pierre) and Mauritius.

This commercial partnership comes within the framework of the agreements signed between the two airlines in 2008, which already enables Air Mauritius to use its code on Air France flights from the hub at Paris-Charles de Gaulle in Metropolitan France and to several destinations in Europe.

This code-share agreement increases capacity to Reunion Island and Mauritius by creating new travel opportunities via Mauritius and via Reunion Island. Moreover, Air France enables its customers to earn miles between Reunion Island and Mauritius.

Air Mauritius operates up to 7 daily frequencies on departure from Mauritius to Reunion Island, Roland Garros and Pierrefonds airports.

Air Mauritius and Air France together operate up to 18 weekly flights to Mauritius at peak periods on departure from Paris-CDG airport. Air Mauritius operates up to 9 weekly flights by Airbus A340-300 and Air France operates up to 9 weekly flights by Boeing 747-400.

Air France operates up to 12 weekly flights to Reunion Island by Boeing 777-300ER at peak periods on departure from Paris-Orly airport.

IOSCO publishes principles on suspension of CIS redemptions

The Technical Committee of the International Organization of Securities Commissions (IOSCO) has published its final report, Principles on Suspensions of Redemptions in Collective Investment Schemes, which contains principles regarding the suspension of redemptions for open-ended collective investment schemes (CIS).

The principles reflect a common level of approach and provide standards against which both regulators and the industry can assess the quality of regulation and industry practices concerning suspensions of redemptions.

Principles for Suspension of Redemptions of Collective Investment Schemes

The principles, which are based on the CIS responsible entities’ basic duty to manage CIS liquidity on an on-going basis so as to avoid suspensions to the extent possible, generally cover all types of openended CIS which offer a continuous redemption right, and apply irrespective of whether they are offered to institutional or retail investors. They are addressed to those entities responsible for the overall operation of the CIS and in particular its compliance with the legal/regulatory framework in the respective jurisdiction and thus for the implementation of the principles. The delegation of activities may not be used to circumvent the principles and there should be compliance with the principles, whether activities are performed directly or through a third party.

Management of liquidity risk

1. The responsible entity should ensure that the degree of liquidity of the open-ended CIS it manages allows it in general to meet redemption obligations and other liabilities.

2. Before and during any investment, the responsible entity should consider the liquidity of the types of instruments and assets and its consistency with the overall liquidity profile of the open-ended CIS. For this purpose, the responsible entity should establish, implement and maintain an appropriate liquidity management policy and process.

Ex-Ante Disclosure to Investors

3. The responsible entity should clearly disclose the ability to suspend redemptions in exceptional circumstances to investors prior to their investment into the CIS.

Criteria/Reasons for the suspension

4. Suspension of redemptions by the responsible entity may be justified only a) if permitted by law and in exceptional circumstances provided such suspension is exclusively in the best interest of unitholders within the CIS, or b) if the suspension is required by law, regulation or regulators.

Decision to suspend

5. The responsible entity should have the operational capability to suspend redemptions in an orderly and efficient manner.

6. The decision by the responsible entity to suspend redemptions, in particular the reasons for the suspension and the planned actions should be appropriately:

a. documented;

b. communicated to competent authorities and other relevant parties;

c. communicated to unit-holders.

During the suspension

7. During the suspension of the redemptions, the responsible entity should not accept new subscriptions.

8. The suspension should be regularly reviewed by the responsible entity. The responsible entity should take all necessary steps in order to resume normal operations as soon as possible having regard to the best interest of unit-holders.

9. The responsible entity should keep the competent authority and unit-holders informed throughout the period of suspension. The decision to resume normal operations should also be communicated as soon as practical.

However, it should be noted that not all principles would necessarily be appropriate for, or apply to, specific non-retail CIS which are not offered to the public and are not subject to approval/registration but instead are subject to specific rules under their national applicable law and regulation.

Implementation of the principles may vary from jurisdiction to jurisdiction, depending on local conditions and circumstances.

Guernsey sees 50%+ rise in insurance licenses issued

The number of insurance licenses issued in Guernsey last year rose more than 50% compared to the previous 12 months.

Figures show that the Guernsey Financial Services Commission (GFSC) licensed 72 international insurers during 2011, which is a 53% increase from the 47 approved during 2010.

This has helped push the net number of international insurance entities licensed in Guernsey up by 12, from 675 at the end of 2010 to 687 at the close of 2011.

Fiona Le Poidevin, Deputy Chief Executive of Guernsey Finance – the promotional agency for the Island’s finance industry, said: “The latest figures show that there have been far more licenses issued during 2011 than the immediately preceding years and this is across the range of entities from conventional captive insurance companies, PCCs [Protected Cell Companies], ICCs [Incorporated Cell Companies] and in particular, PCC and ICC cells.

“These additions significantly outweigh the number of surrenders during the same period and we are aware of several more entities which are being licensed during the very early part of 2012. These developments are expected to see the value of our international insurance sector rise yet further from the current strong position reached through growth in recent years.

“The new figures cement Guernsey’s status as the largest captive insurance domicile in Europe and among the top four the world. This is a message we are keen to reinforce as we continue to promote Guernsey’s risk management credentials to both London and wider introducer markets during 2012.”

The figures show that during 2011 there were 72 new international insurance licenses issued in Guernsey, comprising 6 companies, 12 PCCs, 40 PCC cells, 1 ICC, 7 ICC cells and 6 life policy cells.

This meant that at the end of December 2011 the net total number of licensed international insurance entities stood at 687, made up of 255 companies, 68 PCCs, 267 PCC cells, 5 ICCs, 15 ICC cells and 77 life policy cells.

Towards the end of 2011 there has been notable media interest in two particular new schemes with links to Guernsey. Broking firm Acumus has launched the Guernsey-based Igloo Insurance PCC Limited. Three UK housing associations have joined the scheme by taking cells in the PCC to insure property risks while avoiding market volatility and a number of other associations are expected to join during 2012. It is managed by Heritage Insurance Management Limited.

The Jardine Lloyd Thompson Group (JLT) has announced that its Guernsey office will play a key role in a new mortgage indemnity insurance scheme being introduced in the UK. The Home Builders Federation (HBF) and the Council of Mortgage Lenders (CML) have created the scheme, which will see mortgages on new build homes underwritten by house builders and the UK Government. By insuring the risk of default losses, the scheme allows lenders to offer 95% loan to value (LTV) mortgages on new homes.

Martin Le Pelley, Chairman of the Guernsey International Insurance Association (GIIA), said: “It is extremely encouraging for Guernsey’s insurance market that we are seeing such positive trends at a time when an economic and political storm is engulfing the rest of Europe.

“In fact, the uncertainty created by the credit crunch and subsequent recession emphasise how important proper risk management is within companies operating in the European market and elsewhere. Guernsey has been well-placed to assist companies in this regard due to our breadth of experience and reputation for quality.

“As a result of the decision not to seek equivalence with the proposed European regulatory regime, Solvency II, our internationally compliant insurance regulations continue to provide the local industry and also our current and potential clients with certainty and clarity regarding the regulation of insurance business in Guernsey. This has, no doubt, contributed to the growth of the market during 2011.”

GFSC information shows that 63% of licenses issued in 2011 were to entities with parents in the UK but there was also new business from other parts of Europe, North America, the Caribbean and Asia. The GFSC has also released data for 2010 which shows that the Guernsey international insurance industry had gross assets of £21.4 billion, a net worth of £8.5 billion and premiums written totalling £4.1 billion.

Jersey Finance: Statement in response to comments by Ed Miliband regarding action against the Crown Dependencies

Sirs,

We have noted with disappointment the comments made by the leader of the opposition, Ed Miliband over the weekend, in which he urges action by the EU against British Crown Dependencies, including Jersey.

It is disappointing when political leaders choose to make inaccurate accusations about Jersey which do not reflect the positive contribution that Jersey and the other Crown Dependencies make to the broader UK economy. Once again the confusion between the terms “tax avoidance” and “tax evasion” creates a false impression of Jersey’s co-operative, well-regulated offshore financial centre.

Tax evasion is illegal in Jersey and it is a criminal offence – not a civil one –to facilitate or engage in tax evasion. The majority of Jersey’s activities are focussed on the pooling of and structuring of international funds that have already been taxed.

The last Labour Government commissioned the Foot Review in December 2008. The report highlighted the value that Jersey provided to the UK during the banking crisis in the form of hundreds of billions of pounds of liquidity. That contribution continues to this day.

Furthermore, the report concluded that the amount of tax avoided by UK corporates using British Crown Dependencies and Overseas Territories was “significantly lower than estimates produced by previous studies have suggested.” Therefore, the Foot report and most recent analysis from the HMRC (September, 2011), both suggest that tax avoidance is considerably lower than the wildly inflated figures produced by self-appointed lobby groups such as the Tax Justice Network.

The characterisation of Jersey as a “tax haven” fails to recognise the regular endorsements that the island has received from the OECD and IMF. Moreover the accusation made today that Jersey is not co-operative with the HMRC is quite simply wrong: Jersey has signed both a Tax Information Exchange Agreement (TIEA) and a Double Taxation Agreement (DTA) with the United Kingdom. Jersey has very clear, open and transparent lines of communication with HMRC and is fully co-operative on tax matters. We also work alongside the UK in fighting financial crime and tax evasion.

Ian Gorst, the Chief Minister of Jersey has today extended an invitation to Mr Miliband to visit the island to learn first hand how Jersey actually operates as a stable, reliable and responsible international financial centre.

Economic Freedom: Mauritius Ranked 1st in Sub-Saharan Africa

The 2012 Index of Economic Freedom, published annually by The Wall Street Journal and The Heritage Foundation, ranks Mauritius first out of 46 countries in the Sub-Saharan African region, with an overall score of 77 which is well above the world average. For Mauritius, it is the first time in the top 10 and the first time ever that a Sub-Saharan African country has been so highly rated. Botswana and Rwanda take the 2nd and 3rd place respectively.

With a score of 77.0, Mauritius is ranked as the 8th freest in the world in the 2012 ahead of Ireland (9th), the United States (10th), the United Kingdom (14th), Japan (22nd), Germany (26th) and France (67th). Improvements were observed in property rights, monetary freedom, and the management of government spending, says the Index of Economic Freedom.

According to the report, Government’s continued commitment to structural reforms and policies that promote integration into the global marketplace has positioned the island economy as a world leader in economic freedom. On this score, Mauritius becomes the first Sub-Saharan African country ever to advance into the top 10 in the rankings.

The Index further shows that the Mauritian economy’s impressive progress hinges on a sound and transparent legal framework that strongly upholds the rule of law. The competitive tax regime and an efficient regulatory environment have encouraged broad-based and diversified economic development. It is also reported that open-market policies that support dynamic trade and investment have bolstered productivity and competitiveness. Following the adoption of policies that encourage flexibility and empower individuals, Mauritius has achieved economic prosperity, says the report.

In terms of enforcement of laws regarding intellectual property rights, Mauritius obtains a score of 65.0. As per the report, the judiciary is independent, and trials are fair and the legal system is generally non-discriminatory and transparent. Mauritius is also viewed as one of Africa’s least corrupt countries.

Mauritius-Turkey conclude talks on a Trade and Economic Cooperation Framework Agreement

Mauritius and Turkey yesterday concluded discussions on a Framework Agreement on Trade and Economic Cooperation. The Agreement will be signed at the end of February 2012 in Mauritius during the visit of the Turkish Minister of Economy, Mr. Caglayan.

The Framework Agreement will provide an appropriate platform to bolster trade between Mauritius and Turkey. The Framework text is an umbrella agreement which will allow cooperation and trade in various areas such as agriculture, fisheries, textiles, services including tourism, SME development as well as promote a higher degree of interaction between private businessmen of both countries through joint ventures and trade promotion activities.

The Turkish delegation was led by Mr Hakan Karabalik, Head of Department of the Ministry of Economy. The Mauritian side was headed by the Secretary for Foreign Affairs, Ministry of Foreign Affairs, Regional Integration and International Trade, Mr Anand Neewoor.

In his closing remarks, the Secretary for Foreign Affairs said that the successful outcome of the talks mark another milestone in Mauritius-Turkey’s maturing trade relationship, opening up the possibility of a gradual network of Memorandum of Understandings or agreements that can be envisaged in different sectors. According to Mr Neewoor, the Framework Agreement is designed in a way which will offer both an individual and collective economic boost, and allow businesses to draw on the benefits of the Mauritius-Turkey Free Trade Agreement (FTA) signed in September 2011.

For his part, Mr Karabalik, noted that concluding the Framework Agreement is the second step that has been taken after the signature of the FTA and this has been done rapidly. Mauritius is the first country in sub-Saharan Africa with which Turkey has signed an FTA and due to this fact Turkey attaches great importance to this FTA, he said. ‘For sure in our experience, it will help to boost trade and economic relations as well as investments between both countries’, Mr Karabalik stressed.

It is recalled that Mauritius and Turkey signed a Free Trade Agreement (FTA) in September 2011 and the Framework Agreement concluded will provide the necessary platform to tap the benefits of the FTA once it enters into force.

Mauritius-Turkey: A Trade and Economic Cooperation Framework Agreement under discussion

A two-day meeting between Mauritius and Turkey to start discussions on a Framework Agreement on Trade and Economic Cooperation opened this morning in Port Louis.

The Turkish delegation is being led by Mr Hakan Karabalik, Head of Department of the Ministry of Economy. The Mauritian side is being headed by the Secretary for Foreign Affairs, Ministry of Foreign Affairs, Regional Integration and International Trade, Mr Anand Neewoor, and comprises representatives from relevant Ministries and the private sector including the Mauritius Chamber of Commerce and Industry and MEXA.

Discussions during the meeting will also focus on preparations for the proposed visit of the Turkish Minister of Economy Mr. Zafer Caglayan, to Mauritius scheduled tentatively for end February 2012. It is proposed that the Framework Agreement be signed during the visit of the Turkish Minister.

The objective of the Framework Agreement is to enhance economic cooperation as well as foster trade between Mauritius and Turkey. It covers different areas of cooperation including Agriculture, Education, Science and Technology as well as provisions on trade facilitation and trade promotion. The Agreement will provide a platform to identify areas of investment and create greater economic synergies between both countries.

It is recalled that Mauritius and Turkey signed a Free Trade Agreement (FTA) in September 2011 and the Framework Agreement being discussed will provide the necessary platform to tap the benefits of the FTA once it enters into force.

In his opening remarks, the Secretary for Foreign Affairs, Mr Neewoor, said that economic relationship with Turkey is very important and is growing rapidly. ‘Turkey is an ascending economic power and is ranked 17th among the world’s top 20 economies. With a population of 74 million, half of which is under 29, Turkey is a strategic platform of access to Europe, Caucasus, Central Asia, the Middle East and North Africa’, he stated.

According to the SFA, last year when the two governments met in Istanbul during the signing of the FTA, they concurred that both countries should go beyond the market access dimension of the FTA and engage cooperation on a broad range of trade and economic issues. ‘It is in this context that the need for a Framework Agreement becomes relevant and our two governments have therefore agreed to work on a text that will become the Framework Agreement on Trade and Economic Cooperation’, he added.

For his part, Mr Karabalik, highlighted the importance that Turkey attaches to the FTA signed with Mauritius. In addition to the FTA, he said, and so as to develop and strengthen the trade and economic cooperation, another step to be taken is to sign an Agreement on Trade and Economic Cooperation. Mr Karabalik expressed hope that in light of the Agreement, a Joint Economic Council (JEC) will be set up at Ministerial level which shall meet upon the requests of either party, alternately in Ankara and Port Louis.

In the first ten months of 2011, the volume of trade between Mauritius and Turkey reached 43.2 million USD. During this period, Turkey’s exports increased by 117.4% that is from 16.9 million USD to 36.8 million USD. Similarly, Turkish imports rose by 21.7% from 5.2 million USD to 6.4 million USD.

Singapore: Key conclusions and recommendations of the Expert Panel on Drainage Design and Flood Protection Measures

The Expert Panel on Drainage Design and Flood Protection Measures was appointed by the Ministry of the Environment and Water Resources on 30 Jun 2011 to review flood protection and risk management measures that will be implemented in Singapore over the next decade. Over the span of 6 months, the Panel reviewed the Public Utilities Board’s' (PUB) drainage planning assumptions and parameters; identified innovative and cost-effective solutions; and proposed improvements to ensure public resilience to floods.

The Executive Summary presents the key conclusions and recommendations of the Expert Panel Report.

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EXECUTIVE SUMMARY

(I)         Singapore’s achievements in flood management and prevention

1.         The Panel noted that much good work has been done by PUB in managing the drainage and flood situation in Singapore over the past 30 –40 years, despite the rapid urbanization. In terms of storm drainage, Singapore compares well with other metropolitan areas.

(II)         Rainfall intensities have increased over the past few decades, and are likely to increase in the future

2         In Singapore, heavy rainfall events impose varying constraints on its drainage systems. Extreme discharges can result from events ranging from high intensity storms lasting less than an hour to prolonged rainstorm events with moderate rainfall intensities.

3         Based on the rainfall intensity records over the past 30 years, there is strong evidence of a trend towards higher rainfall intensities and frequency of intense rains. These uptrends are consistent with the Intergovernmental Panel on Climate Change (IPCC) Fourth Assessment Report and could add further strain on Singapore’s existing drainage infrastructure. This evidence challenges past assumptions and, as such, there is the need for PUB to conduct further studies and review its drainage design considerations to account for these observed changes in rainfall trends.

4         However, the Panel recognises that the occurrence of 3 extreme events in the Orchard Road area in an 18 month period is primarily part of the random nature of rainfall patterns.

(III)         Impact of Urbanisation

5         Urbanisation has undoubtedly led to an increase in storm water runoff in Singapore. There is therefore a strong argument for introducing measures to mitigate the effects of such urbanisation.

6         However, the effects are often complex and require further modelling and analysis, supported by higher resolution data. The additional analysis should include an assessment of whether run-off coefficients traditionally used in Singapore are appropriate given the high intensity of rainfall, compared with the areas where the run-off coefficients were derived.

(IV)         The Stamford Canal does not have the capacity to drain away the surface runoff generated by the storms on 16 Jun 2010 and 5 Jun 2011

7         The Panel concluded that the floods at the Orchard Road area on 16 Jun 2010 and 5 Jun 2011 were mainly due to higher rainfall intensities leading to a volume of surface runoff that overwhelmed the conveyance capacity of the Stamford Canal. The Panel noted that the Stamford Canal had been designed to the standard in place at that time rather than standards more typical of today.

8         From the 5 Jun 2011 event, it was also noted that the raising of Orchard Road has reduced the flood risk for a large part of the Orchard Road area, although more detailed studies are needed to determine whether the road raising has moved the flood risk from one location to another.

9         The Panel does not believe that the whole-scale upsizing of the Stamford Canal is the best long term solution to addressing flood risk in the Orchard Road area. A better approach would be to reduce and delay runoff from the upstream catchment, complemented with a diversion of any excess flow to an adjacent catchment.

(V)         The Marina Barrage did not contribute to the recent floods at Orchard Road

10         The Panel noted that the Marina Barrage was designed primarily as a flood alleviation scheme –to remove the influence of high tides on the low-lying areas of Singapore, as well as release excess storm water from the catchment. From the evidence provided, the Marina Barrage has not contributed to the flooding in Orchard Road on 2010 and 2011, as its influence does not go that far upstream.

(VI)         Singapore now needs to move towards a more integrated risk-based approach based on dynamic modelling and comprehensive monitoring

11         PUB should develop appropriate standards for future assessment and design that reflects both the likelihood and consequence of flooding.

12         Modelling tools are essential in simulating flows and water levels in drainage systems. With recent advances in instrumentation, information technology and modelling capabilities, PUB should move comprehensively towards a dynamic modelling approach in order to fully understand drainage system performance and the effect of future interventions.

13         This will require more flow monitoring and other data collection to verify that models truly replicate actual system performance. This would include the comprehensive collection of digital elevation data.

(VII)         A wider range of interventions is required to help Singapore secure a more adequate drainage system for the future

14         As part of the drainage planning process, PUB should consider a wider range of drainage solutions, or interventions. By implementing a range of appropriate measures that covers every spectrum of the drainage system from its source (e.g. local storage tanks and ponds, green roofs, rain gardens, porous pavements, etc), pathways (e.g. drain capacity improvements, diversion canals, regional detention, etc) and receptors (e.g. urban flood plains, raised platform levels, flood barriers, etc), flood risk within the drainage catchment can be more significantly reduced and effectively managed.

15         The Panel recognises that any drainage system, whatever the standards, has a finite capacity. From time to time, intense rainfall will overwhelm the system, and there will be residual risks that need to be managed. This applies not just to Singapore. Drainage planning should be backed up by flood risk mapping so that any residual flood risk from extreme events can be effectively managed.

(VIII)         Improved engagement of stakeholders and the general public

16         There is an opportunity to further enhance public resilience towards floods through active engagement. PUB should develop and implement a strategic public outreach programme to educate and involve the general public proactively in its drainage and flood management approaches, so as to enhance public awareness and preparedness towards floods.

17         PUB should enhance its flood warning systems so as to provide the public with better information and allow them to make informed decisions should a flood occur in their vicinity.

(IX)         Flexible and adaptable systems to manage future uncertainty

18         Singapore needs to plan for the consequences of future megatrends, e.g. climate change, extreme storms, extended droughts, water scarcity, land scarcity, energy costs, resource scarcity and food production. Drainage systems will therefore need to cope with future uncertainty. Solutions that avoid high energy costs, deliver multiple benefits and can be phased in over a period of time are likely to be more successful.

19         This will involve regularly reviewing design parameters, enhancing rainfall and drainage performance modelling and monitoring capabilities, identifying new systems-level interventions, as well as regularly checking on the adequacy and performance, as part of drainage system master planning.

Understanding Investor Due Diligence

The investor due diligence process has evolved with the growth of the hedge fund industry. What was once a short and rather perfunctory process has grown into one which today is highly quantitative and detailed. While there is no one-size-fits-all formula for investors, one certainty is that managers who understand the components of the due diligence process will have an easier time meeting the requests of investors.

This paper, based on numerous conversations with investors, seeks to identify and describe the components of a professional due diligence process – from simple annual return figures to detailed attribution analysis. The end goal is to provide a basic roadmap that can help fund managers understand the depth and breadth of this process and ultimately to help them achieve their fundraising goals.

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TIFA: 5th Council Meeting to be hosted in Mauritius

Mauritius will host the 5th Trade and Investment Framework Agreement (TIFA) Council meeting on 16 and 17 January 2012 at the Inter Continental Hotel, in Balaclava.

At a joint Press Conference held today in Port Louis, the Secretary for Foreign Affairs, Ministry of Foreign Affairs, Regional Integration and International Trade, Mr A. P Neewoor, and Mr H. Jimenez, Economic/Commercial Officer of the US Embassy elaborated on the TIFA Council meeting, on TIFA as a whole as well as its Work Plan, and on AGOA which is one of the key issues to be discussed at the Council meeting.

A high level US delegation led by Ambassador Demetrios Marantis, Deputy United States Trade Representative (USTR) is expected for the Council meeting. Representatives of the US Department of State, USTR Office and USAID East Africa Trade Hub will also be part of the US delegation. The Secretary for Foreign Affairs will lead discussions on the Mauritian side.

The TIFA Council is an important process that helps to pave the ground for bilateral cooperation. It addresses a wide range of trade and investment issues that include, but are not limited to, trade capacity building, intellectual property, labour, environmental issues and enhancing the participation of small and medium-sized enterprises in trade and investment. Mauritius is among the few African countries having signed a TIFA with the US.

Technical work pertaining to the TIFA has been carried out on the basis of a Work Plan agreed between Mauritius and the US. The Work Plan consists of 14 areas of cooperation namely trade and investment promotion in competitive sectors, enhancing private sector linkages, coordinating on AGOA implementation, promoting Intellectual Property Rights (IPR), enhancing trade in services, trade in fish and seafood sectors, and, strengthening agri-business linkages, amongst others.

It is recalled that the Mauritius-US TIFA was signed on 18 September 2006 in Washington. The TIFA includes provisions for the establishment of a bilateral Trade and Investment Council that will meet annually to monitor trade and investment relations, identify opportunities for expanding trade and investment, and identify important issues and challenges that the two countries need to address. The first official meeting of the TIFA Council took place on 5 and 6 February 2007 in Mauritius.

The Governments of both Mauritius and US are called upon to meet, at least once a year, at the level of the TIFA Council alternately in Port-Louis and Washington. The purpose of the TIFA Council meeting is to review progress in the implementation of TIFA Work Plan and set the agenda of work for the coming year.

TIEA a landmark for Jersey in year of increasing marketing activity in India

Jersey Finance has undertaken further promotional activity in India this month following the signing of the Tax Information Exchange Agreement (TIEA) with India in November, which was seen by Jersey as a landmark in helping develop closer commercial ties with Indian companies and investors.

No fewer than 10 Jersey firms joined Jersey Finance representatives at the recent International Taxation Conference at the ITC Maratha Hotel in Mumbai where Jersey Finance was a gold sponsor. As part of its sponsorship, Jersey Finance had a speaker session within the conference schedule and Richard Teather, a senior lecturer at Bournemouth University and offshore academic, spoke on the implementation of GST in Jersey and how such a model might be adopted by India also. He was joined by Patrick Crowley, Head of ABN AMRO Bank in Jersey, whose presentation was on wealth management opportunities for Indians, and Sean Costello, Jersey Finance’s regional head of Business Development for India, who highlighted Jersey’s role as a tax neutral centre for structuring investments.

Alongside participation in the conference, Jersey Finance sponsored a networking dinner and had the opportunity to man an exhibition stand throughout the three day event where according to Sean Costello there was ‘overwhelming interest’ in the products and services Jersey can provide with particular interest in structuring investments and wealth management.

The annual event, one of the premier taxation conferences in the world, is organised by the Foundation for International Taxation, a registered educational charitable trust in India established to promote the knowledge and understanding of international taxation. This year nearly 500 international delegates attended, a record for the event, now in its 17th year.

In New Delhi recently, Jersey Finance welcomed more than 30 guests to a formal reception to mark the signing of the TIEA. Sean Costello, who hosted the event, added:

‘The guests were led by an important Indian Finance Ministry official, Kamlesh Varsney, Director of Foreign Tax and Tax Research, Department of Revenue, at the Ministry of Finance. There were also many leading Delhi based finance professionals, who were invited to the occasion and it proved an ideal opportunity to cement our growing contacts in the city.’

Geoff Cook, chief executive, Jersey Finance Limited, said:

‘We are making significant strides in developing the profile of Jersey in the key cities of Mumbai and New Delhi where Jersey Finance now has a permanent representative team and these two events were the culmination of an increasing marketing drive during 2011.’

Jersey is experiencing business growth from India. While there are no specific Jersey figures available, the Reserve Bank of India estimates that in bound direct investment from the Channel Islands was US$ 516 million in 2010, more than ten times the figure a year earlier.

Many Indian real estate, infrastructure and private equity funds have been established using feeder structures which are managed and administered in Jersey, while Indian residents are using Jersey companies to assist them in investing overseas, particularly into real estate. Jersey legal and finance professionals are also engaged in the formation of offshore funds and transactions dedicated to investment in India, mainly focused on acquisitions, financings and listings.

Casa Forma Acquired by Mauritius Based Group

Casa Forma, the UK based luxury property development, architectural design and interior design firm, has been acquired by a large Mauritius based group with sales of £1 billion in January 2012.

This acquisition allows Casa Forma to develop its own properties as £20 million of investment has been allocated to develop properties in super prime locations of London, UK including Mayfair, Belgravia, Knightsbridge, and Chelsea.

“Rather than do architectural and interior design for third parties, it will be financially beneficial for Casa Forma to invest in its own properties and realize the capital gains from London's increasing property prices as well as from improving the layout and functionality of a space,” Faiza Seth (CEO of Casa Forma) adds.

According to Hamptons, the international UK residential property service, London property prices have increased by 36% since February 2009 and are likely to finish up 13% for the year. Prices are also expected to continue growing in 2012 due to international demand for London properties, since London is seen as a cultural and financial capital of the world. Prime London property values are expected to defy the wider economic downturn as demand from overseas buyers continues to boost prices.

Casa Forma has a track record of enhancing a property by both providing an improved layout that increases functionality, and then supplementing this with luxury interior design which increases the value of a property both intrinsically and commercially.

Casa Forma is an international luxury design firm that has a track record of designing 50 luxury properties since its inception that has provided architectural and interior design for residential, hospitality, and commercial properties. Their experienced team of London interior designers and architects is led by world class experts from the fields of decorative and structural design.

Casa Forma was founded in 2007 by CEO Faiza Seth to develop properties in super prime locations of London and also offers its interior and architectural design services to third parties. It is an award winning architectural and interior design company that has an international team of 15 architects and interior designers based in London. Their international practice provides a comprehensive interior design and architectural design service for residential, commercial and hospitality properties. Their experienced team of interior designers and architects is led by world-class experts from the fields of decorative and structural design placing absolute importance on understanding the particular needs and wishes of their clients for a professional service delivered to an uncompromisingly high standard.