AIMA and IFIA launch revised Sound Practices Guide For Hedge Fund Administrators

The Alternative Investment Management Association (AIMA) – the global hedge fund industry association - in conjunction with the Irish Funds Industry Association (IFIA) has published the revised edition of the AIMA Guide to Sound Practices for Hedge Fund Administrators.

The revised Sound Practices Guide deals with the main functions typically carried out by hedge fund administrators, and outlines how administrators contribute to the overall management and administration of a hedge fund. It provides guidance to hedge funds, investors and other service providers as to how sound practice has emerged in the field of hedge fund administration.

The AIMA Guide to Sound Practices for Hedge Fund Administrators, which was originally published in 2004, has been updated to reflect various industry developments in areas such as valuations, tax and anti-money laundering.

It covers a hedge fund’s start-up phase; how administrators interact with a fund’s investors; how the net asset value is calculated; the additional services that administrators offer; and the support functions they provide. It is not jurisdiction-specific but is relevant to practitioners around the world.

The section on valuation – one of the most heavily discussed subjects in the investment funds industry – includes key extracts from the recent AIMA Guide to Sound Practices for Hedge Fund Valuation. The recommendations outlined represent a significant step forward in providing a roadmap to industry professionals - and comfort to investors - in recommending governance, control and risk mitigation processes in this area.

The Guide to Sound Practices for Hedge Fund Administrators expands AIMA’s substantial, international body of work developed over the last 10 years including guidelines on Managers; Valuation; Administration; Governance; Business Continuity; Due Diligence for Managers and Service Providers; Anti-Money Laundering; and Funds of Hedge Funds.

Andrew Baker, Chief Executive Officer of AIMA, said: “AIMA is very pleased to offer the latest guidance in hedge fund administration sound practices to the global hedge fund industry and all interested parties. The guide also represents the latest contribution by AIMA to the continuous development of industry standards that will benefit the entire investment community.”

Gary Palmer, Chief Executive of the IFIA, added: “As the leading jurisdiction for the servicing of alternative investment funds, the Irish industry, once again, is very pleased to include the industry’s acknowledged expertise and experience in this valuable project whose objective is to contribute to the advancement of hedge fund industry practices.”

AIMA and IFIA expressed their gratitude to all those who volunteered their time to produce their guide.

Mauritius: Association of Leasing Companies - Leasing: Fuelling The Economy

Seminar by Sudhir Amembal on 6, 7 and 8 October 2009

Labourdonnais Waterfront Hotel, Port-Louis, Mauritius

Seminar Outline

1. LEASING OVERVIEW

a. Types of leases

b. Varied players and competitive dynamics

c. How independents can compete against banks

d. Current market turmoil



2. DRIVERS AND MOTIVATORS

a. Proper infrastructure for leasing’s growth

b. The four pillars

c. Strategic value disciplines



3. MANAGEMENT GOALS AND OBJECTIVES

a. Strategic

b. Financial

c. Operational



4. UNDERSTANDING AND SELLING THE BENEFITS

a. Varied types of lessees

b. Reasons for leasing

(i) Financial

(ii) Cash management

(iii) Tax

(iv) Financial reporting

(v) Technology

(vi) Convenience

c. A simple approach to increasing volume



5. LESSOR BENEFITS

a. Leverage

b. Tax

c. Residual



6. LEASE FINANCE

a. Present value

b. Internal rate of return

c. Varied applications



7. THE EQUIPMENT ACQUISITION PROCESS

a. Investment decision

b. Financing decision

c. Lessor selection



8. CONVINCING CUSTOMERS TO LEASE

a. Lease versus purchase

b. Present value after tax approach

c. Convincing lessees that cash is always more expensive

d. Lease versus loan – leasing could be cheaper



9. COMPETITIVE ANALYSIS

a. Qualities of the ideal lessor

b. Lease versus lease analysis

c. Strategies to win the deal



10. PREVENTING LEASING FROM BECOMING A COMMODITY

a. Identifying a buyer’s market

b. Ideas to prevent margin compression

c. Product differentiation



11. LEASE ACCOUNTING

a. IAS

b. Criteria distinguishing finance and operating leases

c. Impact on lessee/lessor

d. The best of both worlds



12. PRICING AND STRUCTURING

a. The dynamics of pricing

b. How to arrive at pre-targeted IRR.

c. Benefits of structure

d. Techniques to structure



13. OPERATING LEASES

a. Unique benefits to lessees & lessors

b. Varied risks to lessors

c. Residual evaluation

d. Techniques to mitigate residual risk



14. LESSONS FROM MATURE MARKETS


Download the Seminar Brochure Here and Register

Seychelles gets its first public University

The University, the first independent, non-profit making higher education institution in the Seychelles, was formally established on the 17th September 2009 at a special Statehouse ceremony, which was attended by the President of the Republic of Seychelles Mr. James Michel. The ceremony included an exchange of formal documents between the Minister of Education, Mr. Bernard Shamlaye and the Chairman of Seychelles University Foundation, Dr. Rolph Payet. Fifty-five Seychellois students will be starting classes soon at the newly founded University of Seychelles.

President Michel was named the Chancellor of the University, and Dr. Payet is the Vice-Chancellor and President of the University. President Michel said: "History shows that all Seychellois have had to travel abroad to obtain a University education. Now the demand for higher education and the value of generating knowledge and securing a comparative advantage in the global market, has called for the development of a University in the Seychelles."

Dr Payet added: "Our long term aim is to offer a much wider range of qualifications in order to make education more accessible. In addition to the degree programmes, we are also offering a Foundation Studies Programme, which once completed successfully, will provide students with the required entry criteria to some of the undergraduate study programmes. The initial programmes being offered at the University are in the field of Business Administration, and Computing and Information Systems, however, the expansion of the University will see further programmes being added to the suite on offer."

The University of Seychelles project was announced by President James Michel during the 2007 national day speech. Two years later this has become a significant historic milestone, as one of the small nations on the planet invests in the creation of knowledge for sustainable development at a time when the planet faces a number of economic, environment and social challenges.

The University of Seychelles (UniSey) is the country’s first independent not-for-profit University offering degree and research programmes. With its main campus situated at Anse Royale the University offers both undergraduate and pre-undergraduate courses, initially in the fields of Business Administration and Computing and Information Systems in collaboration with the University of London. Further degree programmes, part-time studies and inservice opportunities will be launched as the university expands. A Foundation Studies programme will be offered in 2009, and is designed to help students who do not currently possess the required qualifications for undergraduate enrolment to obtain them.

Jersey Financial Services Foundation Degree Gets Award Recognition

A specialist financial services degree offered through the University of Plymouth and taught in Jersey at Highlands College has been short-listed for three awards.

The Foundation Degree in Financial Services features in three nominations in the University of Plymouth Enterprise Awards, which take place this evening, with the Highlands College team and Jersey’s finance industry also receiving recognition.

A major bank in Jersey has been nominated for the ‘Student Placement Provider of the Year’ award for hosting a student as part of the Degree programme, whilst the Highlands College Financial Services Degree team, which includes Bob McGinnigle, Jim Pearce and Michelle Gosling, has also been short-listed for the ‘Employer Engagement’ award.

In addition, Ed Sallis, Principal of Highlands College, has been nominated for the award for ‘Outstanding Contribution to the University’ in recognition for his work in strengthening the partnership between Highlands College and the University of Plymouth and for establishing a University Centre at Highlands College. Commenting on his nomination, Ed Sallis said:

‘I am honoured that the University of Plymouth has short-listed me for their Outstanding Contribution award but I am equally delighted about the recognition given to the Financial Services Degree and our Industry partners. This is a reflection of the work that the College and the Industry has done together to bring financial education to the Island. This partnership with Jersey Finance has proved an enormous benefit to students.’

The two-year degree programme, launched in 2008, is proving an attractive option again this year, with 15 students enrolled. They are currently following a three-day induction programme, facilitated by a number of financial services firms who will be talking to the new students about Jersey’s banking, funds and trust industries and how Jersey’s Finance Industry is regulated. Students will get another chance to talk to the firms at which they will undertake work experience as part of the Degree at an event on 24th September, at which Phil Austin, Chairman of the Education & Resources Group, will also be speaking.

Geoff Cook, chief executive of Jersey Finance, added:

‘Being nominated for three awards within a year of its launch is a fantastic achievement for the Foundation Degree in Financial Services, and this is testament to the hard work that has been put in by everyone involved with it thus far. As well as being delighted to support this initiative, I am also grateful that so many local firms have been willing to participate in it to make it a success. It is vital that Jersey continues to invest in the long-term education and training needs of its local workforce through initiatives like this.’

Sally Dewar addresses FSA Asset Management Sector conference

Sally Dewar, managing director of Wholesale Markets at the Financial Services Authority (FSA), today set out how the EU Alternative Investment Fund Management Directive could be made more workable for the industry and why a risk-based and global approach to regulating fund management is needed.

Speaking at the FSA’s Asset Management Sector conference, Sally Dewar said that there is much in the Directive that the FSA can support and stated that "most of us can see value to the European and global capital markets, and the wider economy, in sensible and proportionate harmonisation of regulatory standards in the areas under discussion".

She added, however, that there remain four key areas that need to be addressed to make the Directive more effective for the funds it covers:

• Correct identification of the weaknesses in the present regulatory arrangements and addressing them in a proportionate way
• Differentiation between types of alternative investment fund management
• Adoption of a risk-based approach – the scope and thresholds of the Directive need to strike the correct balance between imposing additional costs and enabling regulators to identify and mitigate systemic risks
• The need to take a global approach that recognises the global nature of the sector and does not impose unjustifiable geographical restrictions on firms' business models that would significantly restrict investor choice

Full text of the speech

One-day conferences in Jersey & Guernsey to concentrate on funds

Ogier has joined forces with Offshore Professional Conferences to stage the 3rd annual Investment Funds Update Conferences in Jersey and Guernsey.

The one day events will provide a unique insight as to the position of Jersey and Guernsey regarding the latest challenges and expectations of the investment management industry. It will feature a top line-up of speakers comprising both leading local industry figures and UK speakers, which includes Stephen Moverley Smith QC, who has acted in relation to the liquidation of a Madoff investment fund.

The conferences takes place on 23rd November 2009 at L’Horizon Hotel, Jersey and on 24th November 2009 at St Pierre Park Hotel and will carry six hours of Law Society CPD accreditation.

Chairing the proceedings in Jersey will be Ogier Partner, Tim Morgan, and in Guernsey, Ogier partner, William Simpson.

A strong line up of speakers will take part presenting on many relevant and interesting topics. Both Jersey and Guernsey has recently reformed its regulatory regime and the conferences will cover a lot of ground in one day.

To download the complete programme please click here

FSA and SEC discuss approaches to global regulatory requirements

Hector Sants, chief executive of the UK Financial Services Authority (FSA) and Mary Schapiro, chairman of the US Securities and Exchange Commission (SEC), today announced plans to explore approaches to reporting and other regulatory requirements for key market participants such as hedge funds and their advisers.

In particular, they agreed to identify a common, coherent set of data to collect from hedge fund advisers/managers to help the SEC and FSA identify risks to their regulatory objectives and mandates. This announcement came out of a meeting of the SEC-FSA Strategic Dialogue, through which SEC and FSA leaders meet periodically to discuss areas of mutual interest. Other issues discussed at the meeting included over-the-counter derivatives markets and central clearing; accounting issues; regulatory reform; credit rating agency oversight; short selling; and corporate governance and compensation practices.

FSA chief executive, Hector Sants said,

"The global crisis has underlined how intertwined financial markets and institutions are and regulators around the world have to work together to ensure appropriate oversight. We are all working alongside the Financial Stability Board and other international regulatory committees to drive forward global financial reforms. The strategic dialogue with the SEC is a valuable component of the discussions around these reforms, particularly in areas of joint interest and in identifying potential regulatory gaps.

SEC chairman, Mary Schapiro, said,

"As the regulators of two of the world's major market centres, the SEC and the FSA have a strong interest in collaborating with respect to OTC markets and hedge funds, credit rating agencies and other market participants with cross-border operations. Only through strong cooperation can we achieve coherent oversight of global actors and limit opportunities for playing the regulatory seams. I look forward to continuing this successful dialogue between the SEC and FSA."

The FSA and SEC have worked together closely to address the recent financial crisis, both on a bilateral basis as well as in international organizations, such as the International Organization of Securities Commissions. Recently, the SEC and FSA have worked to promote the use of central counterparties (CCPs) for the clearance of credit default swaps and are actively cooperating in the oversight of CCPs.

This was the fourth meeting of the SEC-FSA Strategic Dialogue, which began in June 2006. The purpose of the Dialogue is to engage at senior levels on current matters impacting the U.S. and UK capital markets and areas of future collaboration.

Jersey: Institute of Law and Appleby announce sponsorship deal

The Institute of Law has announced its first sponsorship deal with law firm Appleby.

The announcement was made by Sir Phillip Bailhache at the Induction Day on 4th September 2009. The first Law Course taught from Jersey will provide structured tuition for those intending to sit the qualifying examinations to become Jersey advocates or solicitors. Teaching of the six core subjects will be overseen by experienced academics from outside the Island, supported by local practitioners. Tuition will be via regular lectures, seminars and tutorials.

The Institute of Law provides a focus for study and development of Jersey law, and promotes the continuance of Jersey’s legal heritage. The Institute will assist the Board of Examiners in setting and marking examination papers. In addition, some of the Law Course modules are designed to be of interest to other law professionals who want to acquire knowledge in one or more aspects of Jersey Law. A centre of excellence for legal education and research, the Institute is also sponsored by the Jersey Legal Information Board (“JLIB”) and the States Economic Development Department (“EDD”).

Appleby is one of the leading law firms in Jersey with offices in nine other jurisdictions globally. It has five students enrolled from this September and several others scheduled to start in September 2010. Three Appleby partners are also members of the Board of Examiners.

The Institute will be formally opened next year, Future expansion plans involve broadening into the undergraduate law student market. The Institute is currently in discussions with several London universities to assess the feasibility of such a move.

Sir Philip Bailhache commented: “I am delighted to have been involved in the establishment of the Institute of Law, and to welcome the first students to the Law Course 2009. We are pleased to have gained the support of Appleby, which has enabled us to develop the Institute’s website. The mixture of overseas experts and local practitioners will help ensure the best possible experience for students”.

Michael O’Connell, Managing Partner of Appleby in Jersey added: “We are very pleased to be associated with such a landmark development for the legal profession in Jersey. Studying for, and taking, the qualifying examinations can be a daunting experience – especially when combined with employment commitments. The new Law Course will significantly improve the experience for students, offering a supportive environment, and world-class tuition. We are excited to be able to support the Institute and look forward to see it develop in future.”

Singapore and Austria sign agreement to enhance tax cooperation

1. Singapore and Austria signed a protocol amending their standing Agreement for the avoidance of double taxation (“DTA”) today.

2. Mr Peter Ong, Second Permanent Secretary (Finance), signed the protocol with Austria’s Ambassador to Singapore, His Excellency Dr Klaus Wolfer, in Singapore.

3. The full text of the protocol is available here. The protocol will enter into force after Singapore’s legislative amendments to give effect to the internationally agreed Standard have been approved by Parliament and gazetted into law, and the ratification procedures have been completed by both countries.

IMF Ranks Jersey as one of the Best Jurisdictions Globally

Jersey Finance has welcomed the comprehensive endorsement Jersey’s finance industry has obtained from the IMF in its latest review, which has praised Jersey’s high standards of regulation and supervision.

The report, the Financial System Stability Assessment Update (FSSA), published yesterday, states that Jersey is in the ‘top division’ of international finance centres, including those in the G20 and EU, and that, where it is possible to make comparisons with other jurisdictions, Jerseys is classed as being compliant or largely compliant with 44 of the 49 general FATF recommendations, compared to, for example, the United Kingdom (36) and Switzerland (33).

It states that Jersey’s laws and regulations have been amended to enhance compliance with international standards and to keep pace with financial sector developments, and confirms that Jersey’s banking system is resilient to a range of shocks and that the financial soundness indicators for banks are satisfactory.

The Jersey Financial Services Commission is also described as conducting its functions in ‘a transparent and accountable manner’ whilst anti-money laundering rules and measures to counter terrorist financing are described as ‘comprehensive’ and ‘robust’.

Geoff Cook, chief executive, Jersey Finance, comments:

‘The IMF has given Jersey’s finance industry a ringing endorsement for the quality of its regulation and legislation, the transparency of its regulatory processes and the robustness and resilience of its banking system.’

In addition, the IMF review has reaffirmed a number of features of Jersey’s regulatory and supervisory regime, referring to Jersey as one of the pioneers of the Tax Information Exchange Agreements. It highlights that Jersey’s financial institutions and trust company businesses are well supervised to counter terrorist financing and money laundering and that Jersey’s finance industry has continued to maintain open and co-operative relationships with regulatory authorities overseas.

The IMF also recognises that Jersey has ‘no statutory banking secrecy provision’ and that, ‘with mandatory registration with the Registrar of Companies, Jersey’s finance industry has measures in place to obtain, maintain, and verify beneficial ownership information for companies’. Furthermore, ‘the establishment of trusts are significant activities in Jersey and are subject to strong AML/CFT requirements’, recognising that Jersey’s finance industry has always been able to identify the true beneficial owners of all entities, which includes trusts, limited companies, partnerships and legal arrangements formed in the jurisdiction.

Geoff Cook adds:

‘The facts, independently endorsed by the IMF, speak for themselves. When compared with any other financial jurisdiction, Jersey’s finance industry standards rank at the highest level. For example, Jersey is one of only seven jurisdictions complying with 15 of the 16 Financial Action Taskforce ‘key’ recommendations, the top rating so far attained, and Jersey is the only jurisdiction that has been assessed as compliant with 44 of the general FATF recommendations, closely followed by Singapore (43) and the United States (43).

‘Those ill-informed critics of Jersey’s finance industry should be willing to recognise that the standard of Jersey’s financial services regulations and supervisory capabilities are either ahead of, or on a par with, the regulatory positions of both EU Member States and G20 countries and that criticisms of Jersey for failings in this regard hold no weight whatsoever.’

‘While welcoming these findings, we accept that there is no room for complacency and that further enhancements will be required to meet an evolving regulatory landscape globally, as outlined in the review. The Industry in Jersey will continue to play its part in striving to ensure that high standards are maintained.’

Jersey in Top Division for anti-money laundering compliance

Jersey has been praised for the regulation and supervision of its financial sector and for its money laundering and terrorist financing defences. A report published today by the International Monetary Fund (IMF) concludes that financial sector regulation and supervision are of a “high standard” and “comply well” with international standards.

The Financial System Stability Assessment Update (FSSA) says Jersey has put in place a “comprehensive and robust” framework for countering money laundering and terrorist financing(“AML/CFT”) and has achieved a “high level of compliance” with almost all aspects of the Financial Action Task Force’s 40+9 Recommendations.

The report also says that financial soundness indicators for banks are satisfactory and that Jersey’s banking system is resilient to a range of shocks.

The detailed assessment reports that form the basis for most of the FSSA show compliance ratings for each of the international standards against which the Island has been assessed. The reports show that Jersey complies or largely complies with:

• All of the Basel Committee’s Core Principles for Effective Banking Supervision.
• 24 of the 27 Insurance Core Principles that it has been assessed against.
• 44 of the 49 FATF Recommendations, and 15 of the 16 “core” and “key” FATF Recommendations (Singapore and the United States comply, or largely comply, with 43 of the FATF Recommendations and Belgium with 42).

These ratings place Jersey in the “top division” of international finance centres, including those in the G20 and European Union. Where it is possible to make comparisons to other jurisdictions, Jersey’s ratings put it at the top of compliance tables.

While compliance with the International Organisation of Securities Commissions’ (“IOSCO”) Objectives and Principles of Securities Regulation was not assessed, the FSSA says it is evident that the regulation of investment business, particularly funds business, has been “significantly strengthened” since the last IMF report in 2003. The FSSA also says the trust and company services business sector enjoys a “comprehensive” regulatory and supervisory framework.

The FSSA highlights two particular areas that are specific to Jersey’s business model and where further enhancements could be considered.

• Reference is made to the common business practice of “up-streaming”, where Jersey banks take deposits from customers (in Jersey and elsewhere) and then place these funds with group entities (mostly in the United Kingdom and other Member States of the European Union) – providing liquidity to the group. The report says that, in the event that the health of the group deteriorates, the exposure of Jersey banks would require careful management.
• Mention is made of the reliance that may be placed by Jersey businesses on third parties (in Jersey and elsewhere) to have carried out customer due diligence measures for AML/CFT purposes. The IMF encourages the insular authorities to review the use of this concession, which is described as “overly generous”.

The FSSA also makes a number of recommendations, identified as “high” or “medium” priority. The authorities will develop an action plan to deal with these recommendations. The plan will be published and the authorities will report annually on progress.

Despite the very positive assessment, the insular authorities accept there is no room for complacency. In particular, the FSSA says the Jersey Financial Services Commission will be “challenged” to react to changes in supervisory standards coming out of the global financial turmoil and implement them “proportionately to the risks on the island”.

In a joint statement, the Chief Minister, Senator Terry Le Sueur, and Commission Chairman, Colin Powell, CBE, said of the report:

“This is an excellent outcome and we attach tremendous importance to the IMF’s assessment. We are delighted that it has yet again demonstrated Jersey’s high degree of compliance with international standards. The FSSA and other reports will provide a strong base from which to continue discussions with our European neighbours about recognising the equivalence of what we have in place in Jersey.

“Jersey remains committed to maintaining and enhancing its adherence to international standards and welcomes the recommendations made within the FSSA. These recommendations will assist Jersey in further strengthening its regulatory, supervisory and AML/CFT arrangements and in developing its capacity to deal with financial sector shocks.

“The assessment reinforces Jersey’s position as a member of the community of nations that adhere to international standards in prudential, tax and AML/CFT areas.”

IOSCO publishes regulatory standards for Funds of Hedge Funds

The International Organization of Securities Commissions (IOSCO) has published Elements of International Regulatory Standards on Funds of Hedge Funds Related Issues Based on Best Market Practices containing standards aimed at addressing regulatory issues of investor protection which have arisen due to the increased involvement of retail investors in hedge funds through funds of hedge funds.

A previous report, Funds of Hedge Funds–Final Report, published in June 2008 identified the particular areas of concern as:

I. The methods by which funds of hedge funds’ managers deal with liquidity risk; and

II. The nature and the conditions of the due diligence process used by funds of hedge funds’ managers prior to and during investment.

Therefore IOSCO has developed the following proposals in these two areas:

Liquidity Risk

In dealing with liquidity risk the fund of hedge funds’ manager should:

• make reasonable enquiries in order to be in a position to consider if the fund of hedge funds’ liquidity is consistent with that of the underlying hedge funds, particularly in order to meet redemptions;
• prior to investing, and during the investments’ lifetime, consider the liquidity of the types of the financial instruments held by the underlying hedge funds;
• if introducing limited redemption arrangements, consider whether these are consistent with the fund of hedge funds’ aims and objectives. Moreover, their operation should comply with the conditions defined in the proposals; and
• before and during any investment, consider whether conflicts of interest may arise between any underlying hedge fund and any other relevant parties.
  

Due Diligence Processes

These should be carried out prior to any investment being entered into and on a continuous basis following the commitment. They can be divided up into the following areas:

• Elements requiring constant monitoring and analysis by the funds of hedge funds’ managers:
  * establishing and implementing appropriate due diligence procedures for the purpose of investment into hedge funds, which are reviewed regularly;
  * assessing the specific legal and regulatory requirements applicable in the hedge fund’s jurisdiction; and
  * carrying out appropriate due diligence on the underlying hedge fund whenever it is considered necessary.

• Adequate resources, procedures and organizational structures necessary for the purpose of carrying out a proper and robust due diligence:
  * documented and traceable procedure for selecting hedge funds;
  * appropriately skilled staff and adequate technical resources to implement the due diligence procedures;
  * the resources, procedures and organizational structure to deal with any anomalies identified by due diligence system, to take the necessary corrective action and confirm that all procedures are traceable and have been catalogued;

• Regularly assess if selection procedures for eligible underlying hedge funds have been properly met, or not met, and to explain any deviations; and

• Outsourcing Due Diligence
  * If a fund of hedge funds’ manager wishes to authorize the outsourcing of any aspect of its due diligence it should:
  - determine that any conflicts of interest are adequately addressed; and
  - consider the extent that outsourcing of due diligence is consistent with the IOSCO Principles on Outsourcing of Financial Services for Market Intermediaries.

These standards form part of a larger body of work that IOSCO has been engaged in with regards to addressing the regulatory issues presented by hedge funds.

Deutsche Bank partners with IBM to launch Virtual Accounts, its new internet platform for management of client account portfolios

Deutsche Bank today announced that it will be partnering with IBM to develop “Virtual Accounts” as a new addition to db direct internet, the Bank’s awardwinning web-based electronic banking platform. Virtual Accounts will enable financial institution and corporate clients to manage even the largest portfolios of virtual accounts with unprecedented ease via the internet.

Using the "Virtual Accounts" feature on db direct internet, clients are able to open as many virtual accounts as required which link into one or many physical Deutsche Bank accounts and permit clear segregation of client accounts and their funds. This feature lets clients recreate their sub-accounting structure, allowing payments to be initiated directly from the respective virtual account representing the client. On Deutsche Bank’s ledger, these payables are booked from the physical current account. On the receipts side, the client maintains flexible matching rules which automatically allocate funds from the physical account to the correct virtual account.

All functions are supported by an intuitive browser module that allows clients to conduct self-administration on all parameters of the accounts that they maintain with the Bank. Using entirely new account grouping features, changes to large numbers of accounts are made with minimal effort. Additionally, the Bank’s clients may offer a white-labeled web interface to their own customers to view accounts, download statements and even initiate payments. Statements are received intraday and end-of-day in CSV, PDF, FIN or XML formats.

Maurice Cleaves, Regional Head of EMEA Product Management, Global Transaction Banking, Deutsche Bank, said, “We are pleased to partner with IBM to extend the depth of our internet platform for those financial institutions and corporate clients who choose to manage their entire portfolio of client sub-accounts on db direct internet. We selected IBM, a trusted partner with a strong knowledge of our internal applications, because it is capable of addressing our demands for a highly customized and robust solution. Clients benefit from easier reconciliation regardless of the number of accounts.”

June Yee Felix, General Manager Banking and Financial Markets IBM, said “We look forward to partnering once again with Deutsche Bank, a leader in the transaction banking space. Virtual Accounts will offer Deutsche Bank’s clients the opportunity to access additional levels of functionality while achieving new efficiencies. In fact, according to IBM’s recent research with 8000 clients globally, convenience is one of the top reasons clients select their banks and Deutsche Bank’s new capability is an excellent means of providing robust functionality in a highly convenient manner. ”

What is Financial Transparency?

The Mapping the Faultlines project is based on the contention that the mechanisms that allow illicit financial flows to occur result from a synergistic relationship between the world’s secrecy jurisdictions and its secrecy providers (usually accountants, lawyers and bankers) who create the structures that these jurisdictions facilitate. Inherent in the work is an assumption that an alternative is possible: that if there was increased financial transparency it would be much harder to hide illicit financial flows, and that in turn the volume of such flows would decrease.

The Mapping the Faultlines project is not seeking to offer policy solutions to the problems it identifies at this time: these will be offered at a later date. It does, however, seem inappropriate that it address issues of secrecy and the problems it creates unless the alternative of transparency, and the merits it can deliver, is considered.

This paper seeks to do just that, both by exploring the arguments for transparency and what the resulting benefits might be of achieving it, and by describing what transparency would look like if it were to exist. In doing so this paper seeks to do more than describe what is, it seeks to describe what should be. Yet this is not an exercise in determining what ought to be so, based on examples from current best practice: this paper suggests that there is an ideal form of financial transparency to which we should aspire, and sets out what that might be. Without seeking to establish this ideal it is suggested that any eventual policy proposal this work might give rise to will fall short of the goal to which society should aspire.

Download full document by clicking here

ICSA (The Institute of Chartered Secretaries and Administrators) in Mauritius

ICSA is the professional qualifying body for Chartered Secretaries and the world's leading authority on corporate governance.

What does a Chartered Secretary do?

Chartered Secretaries are high ranking professionals who are qualified in corporate law, finance, governance, company secretaryship and management. Highly valued by employers, they advise on the conduct of business from legal advice and conflicts of interest through accounting advice to the development of strategy and corporate planning. They are the key players with the skills, vision and values to take their organisations forward.

Here are some of the key benefits of being a Chartered Secretary:

• You'll be on the fast track to the boardroom - once qualified you'll work closely with the Chairman and the board
• The qualification is internationally recognised and gives you access to a broad range of portable skills
• You'll be able to work in the private, public or not-for-profit sectors or set up your own business offering company secretarial services
• It's well paid. According to a survey published by recruitment firm Chambers and Partners in September 2008, the base salary for a top company secretarial job in a FTSE 100 company averaged out at £188,417, with an average bonus of £67,667.

How to become a Chartered Secretary

The ICSA's Chartered Secretary qualifying scheme provides the most wide-ranging study of business disciplines among the leading professions. Valued worldwide by employers, the highly marketable qualification is the passport to a challenging, versatile and well rewarded career.

Once you have studied for and passed your exams you will be designated the title GradICSA which you can use after your name. Once you have a certain level of relevant work experience (which you can gain whilst studying) you can apply to become a Member and become a fully qualified Chartered Secretary.

How and where to study

There are a number of ways to study for ICSA qualifications:

• Self study
• Distance learning delivered by independent tuition providers
• Part-time attendance at classes delivered by independent tuition providers
• Full-time attendance on collaborative courses at partner universities (for joint ICSA/university postgraduate masters awards only). These post-graduate collaborative courses mean you gain the University's post-graduate award in addition to the GradICSA

How long does qualification take?

Due to the flexibility of study options available, there is no set timeframe in which the status of Chartered Secretary is achieved, however if you study both parts of the professional programme, qualification typically takes between one and three years.

How much does it cost?

Have a look at our fee sheet for further information. Currently ICSA offers concessionary rates to Professional Programme students living, studying and sitting their examinations in Mauritius. Students living, studying and sitting their examinations in Mauritius should pay the reduced rate.

For futher details please contact:

Kathy Martin
ICSA Mauritius Branch
1st Floor , Fon Sing Building
Edith Cavell Street
Port Louis
Mauritius
Tel/Fax 208 45 49

E-mail – kmartin.icsa@orange.mu

ICSA Independent Tuition Providers in Mauritius:

Professional Training Centre
4th Floor Jade Court
Jummah Mosque Street
PORT LOUIS Mauritius

Contact: Chaya Poonyth
Tel: 00 230 242 0460
Email: chaya@ptraining.intnet.mu
Further Information: Face-to-face tuition, Distance learning: Offshore, Professional

Sagittarius
3rd Floor, Nova Building
St Jean Road
QUATRE BORNES Mauritius

Contact: Jay Lallbeharry
Tel: 00 230 464 0997
Email: sag_jai@intnet.mu
Web: http://pages.intnet.mu/sirius76/icsa.html
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Mauritius ranks 17th in Overall Ease of Doing Business 2010

Mauritius ranks 17th in global rankings on Overall Ease of Doing Business 2010 and tops Sub-Saharan economies for the 2nd consecutive year, according to the World Bank group's Doing Business 2010 Report: Reforming Through Difficult Times, launched yesterday at the World Bank Office in Port Louis.

Mauritius climbed seven steps from its previous global ranking at 24 in the Doing Business 2009 report and moved into the top twenty economies on the overall ease of doing business out of the 183 economies rated by the International Finance Corporation and the World Bank. This is attributed mostly to the continuous reforms upon which the country has embarked thus transforming and improving the business climate into a more globally competitive one. Reforms have also made the investment procedures significantly easier for people to do business and at the same enabled firms to withstand the global recession with less difficulty.

Areas of reform in Mauritius pertain mainly to employing workers, registering property, getting credit information, trading across borders, closing a business and enforcing contracts. The country has adopted a new insolvency law, established a specialized commercial division within the court towards improving contract enforcement, eased property transfers by setting a limit of 15 days to obtain final property titles from the land registry and expedited trade processes with the introduction of electronic submissions of customs declarations and bills of lading.

According to the World Bank, Sub-Saharan Africa is reforming at a fast pace with 67 reforms recorded in 29 Sub-Saharan Africa's 46 economies. On the ease of doing business rankings, Mauritius preceded South Africa placed at the 34th position, whilst Rwanda is the top reformer worldwide jumping 76 places in the global ratings from 143 to 67 followed by Liberia the second most active reformer in the region. The World Bank group furthermore points out in its report that there are still many opportunities for improvement, and several good practices in the region to learn from.

Doing Business 2010 is the seventh in an annual series of reports issued by the International Finance Corporation and the World Bank and ranking 183 economies on the overall ease of doing business. The ratings are based on ten indicators namely, starting a business, dealing with construction permits, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business.

McKinsey: Rethinking the model for offshoring services

BPO providers often rely on a limited number of geographic locations, exposing themselves to unnecessary risk. They can mitigate these risks in the same way that financial managers do—by diversifying their holdings.

The outsourcing and offshoring industry is at a turning point. What began as a small-scale sector dedicated to application development, accounting, and payroll has become, as of 2008, an $80 billion global industry, addressing a range of business processes and technology services. As the IT services and BPO industry matures, however, challenges are emerging.

Our research finds that more that 70 percent of offshore delivery centers, including both wholly owned captive operations as well as vendors, narrow their global operations to just three locations, often situated in only two countries (most frequently India, China or the Philippines). This reliance on a limited number of geographic regions—historically driven by the availability of highly skilled, low-cost labor in these areas—is exposing providers to a variety of location-specific risks. These include abrupt currency and wage fluctuations, intense competition for employees, and regulatory limits. While a narrow geographic concentration may result in lower labor costs at the outset, the overall risks are higher, according to our research. The same is true on a microlevel: our data show that when a delivery center in a large Indian city grows beyond 3,000 employees, costs spiral and performance begins to deteriorate.

• Exhibit 1: One Paris-based company offshored high–end IT services work across several locations, seeking to minimize exposure to geographic, currency, and labor issues.
• Sidebar: An enhanced menu of location choices
• Exhibit 2: Nontraditional offshoring locations offer trade-offs between cost and risk.
• Exhibit 3: Companies that leverage the full breadth of the talent pool improve the performance of their offshoring centers.
• Exhibit 4: Companies must search for new locations and set up new centers proactively, before the performance of existing centers deteriorates.
• Exhibit 5: One provider sought to create a next-generation global delivery model by allocating work dynamically.

Rethinking the model for offshoring services

Regus Opens 1,000th Centre in Mauritius

Regus, the leading provider of innovative workspace solutions, today announces the official opening of its 1,000th business centre in Port Louis, Mauritius. Coming almost 20 years to the day since the company opened its first centre in Brussels, Belgium, Regus now has a presence in 76 territories and more than 500,000 customers.

Welcoming the opening, M. Rajoo Jadoo, Director of the Board of Investment (BOI) in Mauritius said: "Mauritius is increasingly becoming known as a regional business hub and services centre. In this context, the Board of Investment is striving to establish a favourable investment climate in which operating businesses becomes easier. The investor who chooses Mauritius can now begin business activities and secure all the required permits within three days. The Regus business model perfectly complements our objective of allowing investors to be quickly operational by providing them with corporate-type workspaces. We are glad that such services are now available in Mauritius. We sincerely thank Regus for bringing its expertise and worldwide network to the country."

Mark Dixon, Global CEO, Regus comments: "In reaching this historic landmark we have, over the last 20 years, had to open a centre every week. This has only been possible because of the hard work and dedication of our people and I'd like to take this opportunity to thank them all, both past and present, in helping us get to where we are today. But this is not a time to rest on our laurels; we're already working on the next 1,000 centres, starting in Beaver Creek, Ohio.

"Be it Mauritius or Monaco, Milwaukee or Manila we are redefining the world of work, offering business of all sizes flexible, innovative cost effective and inspiring spaces in which to meet, work and collaborate."

The current economic crisis and the rise of the mobile and home-based worker is forcing companies to re-evaluate their workplace needs and ask themselves if they have the right mix of space.

Dixon adds: "We are on the cusp of workplace revolution, which will see fixed office workers become the exception not the norm. For decades companies have struggled to accurately forecast their workplace needs. As a result, on any given day something in the region of fifty percent of office space sits empty, while the other fifty percent is being utilized for functions that could be performed anywhere. The way people work is changing forever and Regus centres, such as this one in Mauritius, are at the forefront of this revolution."

The Regus centre, located in Ebene, is 10 kilometers from the island's capital, Port Louis, and will be based in Cybercity, a prestigious corporate complex. Cybercity is home to a wide range of multinational corporations and is considered the country's information technology hub. Regus clients will benefit from a business-ready environment, including fully furnished and equipped offices, meeting rooms, a business lounge and administrative support staff.

Guernsey Finance - Hong Kong & Shanghai Delegation

Guernsey will be building on the work from its April visit during this delegation in October.

Delegation visit schedule:

23 & 24 October, Hong Kong
Half-day conference with China Economic Review 'Guernsey - Offshoring for the Asian Market: Investment Funds' (23 October)

25 to 28 October, Shanghai

Including:

- Official launch of new Guernsey Finance office (26 Oct)
- Half-day Guernsey conference with China Economic Review 'Guernsey - Offshoring for the Chinese Market: Funds and Wealth Management (27 Oct)
- Industry meetings in Shanghai (28 Oct)

Further details on the half day conferences in both Hong Kong and Shanghai are available through the flyer

Doing Business 2010: Reforming through Difficult Times

A record 131 economies around the globe reformed business regulation in 2008/09, according to the IFC–World Bank Doing Business 2010 report.

That is more than 70 percent of the 183 economies covered by the report— the largest share in any year since the annual report was first published in 2004. And this progress came against the backdrop of a global economic crisis.

Doing Business 2010: Reforming through Difficult Times recorded 287 reforms between June 2008 and May 2009, up 20 percent from the previous year. Reformers around the world focused on making it easier to start and operate businesses, strengthening property rights, and improving commercial dispute resolution and bankruptcy procedures.

Reforms measured by Doing Business can play an important role in enabling countries to recover from the economic crisis. The financial and economic crisis has become a jobs crisis in developing countries, and SME growth offers the best prospects for job creation.

“The quality of business regulation helps determine how easy it is to reorganize troubled firms to help them survive difficult times, to rebuild when demand rebounds, and to get new businesses started,” says Penelope Brook, Acting Vice President for Financial and Private Sector Development for the World Bank Group.

Developing Economies Set a Fast Pace—with Rwanda in the Lead

Three-quarters of low- and lower-middle-income economies reformed, accounting for two-thirds of reforms recorded by Doing Business 2010 (figure 1.2).

Among these, Rwanda is the star and the world’s top reformer of business regulation, making it easier to start businesses, register property, protect investors, trade across borders, and access credit. It marks the first time a Sub-Saharan African economy is the top reformer.

This year, there were four newcomers among the global top ten reformers: Liberia, the United Arab Emirates, Tajikistan and Moldova. Others, aside from Rwanda, are Egypt, Belarus, the Former Yugoslav Republic of Macedonia, the Kyrgyz Republic, and Colombia. Colombia and Egypt have been top global reformers in four of the past seven years.

Regional Pace Setters

Eastern Europe and Central Asia is the fastest-reforming region for the sixth year in a row. Despite being severely affected by the global crisis, all but one of the region’s 27 economies reformed business regulation over the past year. Five of the ten top global reformers are from the region. In the past two years reforms have been moving eastward from the European Union accession countries. Albania, Belarus and the Kyrgyz Republic implemented reforms in several areas for the third year in row. Inspired by their neighbors, Kazakhstan, Montenegro and Tajikistan continued reforms this past year.

The Middle East and North Africa has had the largest surge in reforms. Seventeen of the region’s 19 economies made reforms in 2008/09. Egypt, Jordan, Saudi Arabia, and the United Arab Emirates are leading global and regional reformers. (figure 1.1)

What Consistent Reformers Do

Doing Business analyzes regulations affecting the life cycle of a domestic, small to medium-size firm: from business start-up and operations, to trading across borders, paying taxes, and closure. The ease of doing business index ranks economies from one to 183. Singapore, a consistent reformer, ranks top on the ease of doing business, a position it has kept for the fourth year running. New Zealand is runner-up.

As Doing Business has tracked regulatory reforms over the past six years, some common features among successful reformers have started to emerge:

• They follow a longer-term agenda aimed at increasing the competitiveness of their firms and economy. Colombia, Egypt, Malaysia and Rwanda are all examples of economies incorporating business regulation reforms into a broader competitiveness agenda.
• They stay proactive. Singapore and Hong Kong (China) rank among the top economies on the ease of doing business and are also some of the most consistent reformers.
• They implement broad-based reforms. Over the past five years Colombia, Egypt, Georgia, the FYR Macedonia, Mauritius and Rwanda each implemented at least nineteen reforms, covering eight or more of the ten areas measured by Doing Business.
• They are inclusive. They involve all relevant public agencies and private sector representatives and institutionalize reform at the highest level. Colombia and Rwanda have formed regulatory reform committees reporting directly to the president or prime minister. More than 20 other economies, including Burkina Faso, India, Liberia, FYR Macedonia, Syrian and Vietnam, have formed committees at the ministerial level. Reforms in Egypt involved 32 government agencies supported by the parliament.
• They stay focused thanks to a long-term vision supported by specific goals

Heavy, costly regulatory burdens can push firms—and employment—into the informal sector, where firms are not registered and do not pay taxes and where workers have limited access to formal credit, institutions or protections. The global crisis is expected to further increase informal activity. According to the OECD, almost two-thirds of the world’s workers are already estimated to be employed in the informal sector. Most are in low- and lower-middle-income economies. And a disproportionate share is from already vulnerable groups, such as youth and women. Doing Business can give policymakers insights to a part of the solution - how to reform business regulation.

UK : FSA fines Barclays £2.45m for failures in transaction reporting

The Financial Services Authority (FSA) has fined Barclays Capital Securities Ltd and Barclays Bank PLC (Barclays) £2.45m for failing to provide accurate transaction reports to the FSA and for serious weaknesses in systems and controls in relation to transaction reporting.

Firms are required to submit data for reportable transactions by close of business the day after a trade is executed. The FSA uses this data to detect and investigate suspected market abuse: insider trading and market manipulation.

The FSA discovered discrepancies in Barclays’ data while reviewing a suspected incident of market abuse by a third party. A subsequent review of Barclays’ transaction reporting arrangements revealed that it did not have adequate systems and controls in place to meet the transaction reporting requirements as well as a substantial number of errors in the data submitted to the FSA.

Alexander Justham, FSA director of markets, said:

“Complete and accurate transaction reports are an essential component of the FSA’s market monitoring work. Barclays’ reporting failures could have a damaging impact on our ability to detect and investigate suspected market abuse.

“The penalty imposed on Barclays is significantly higher than previous penalties imposed for transaction reporting errors. This reflects the serious nature of Barclays’ breaches and is a warning to other firms that the FSA will not tolerate inadequate systems and controls.”

Barclays’ breaches occurred despite repeated reminders to firms of their obligations to provide accurate data and the importance of compliance with the FSA rules on transaction reporting during the course of 2007 and 2008.

The firm has taken a number of steps to address the concerns raised including commissioning a review of its transaction reporting process and committing extensive resources to improve its processes and resolve the errors.

Barclays co-operated fully with the FSA in the course of its investigation and agreed to settle at an early stage. In doing so it qualified for a 30% discount. Without the discount the fine would have been £3.5m

The Final Notice can be found on the FSA website

HSBC Mauritius Exciting Offer on INR Remittances into India

HSBC Mauritius provides a unique advantage to Global Business clients who need to remit funds into India:

SAME DAY VALUE - we can remit Indian Rupees into India on the SAME DAY.

Exciting offer - TT remittance charges and FIRC costs waived

To encourage Global Business clients to effectively take advantage of our INR remittance service, we are pleased to announce our offer will be effective from 9th September to 31st December 2009.

Competitive INR rates

HSBC Mauritius offers competitive INR rates for your FEX conversion from major convertible currencies.

Switzerland replaces United States at top of competitiveness rankings

Switzerland tops the overall ranking in The Global Competitiveness Report 2009-2010, released today by the World Economic Forum ahead of its Annual Meeting of the New Champions 2009 in Dalian. The United States falls one place to second position, with weakening in its financial markets and macroeconomic stability. Singapore, Sweden and Denmark round out the top five. European economies continue to prevail in the top 10 with Finland, Germany and the Netherlands following suit. The United Kingdom, while remaining very competitive, has continued its fall from last year, moving down one more place this year to 13th, mainly attributable to continuing weakening of its financial markets. The People’s Republic of China continues to lead the way among large developing economies, improving by one place this year, solidifying its position among the top 30. Among the three other large BRIC economies, Brazil and India also improve, while Russia falls by 12 places. Several Asian economies perform strongly with Japan, Hong Kong SAR, Republic of Korea and Taiwan, China also in the top 20. In Latin America, Chile is the highest ranked country, followed by Costa Rica and Brazil.

A number of countries in the Middle East and North Africa region are in the upper half of the rankings, led by Qatar, United Arab Emirates, Israel, Saudi Arabia, Bahrain, Kuwait and Tunisia, with particular improvements noted in the Gulf States, which continue their upward trend of recent years. In sub-Saharan Africa, South Africa, Mauritius and Botswana feature in the top half of the rankings, with a number of other countries from the region measurably improving their competitiveness. Click here to read the highlights of the Report.

- Download the full Global Competitiveness Rankings (PDF or Excel format)

"The strong interdependence among the world’s economies makes this a truly global economic crisis in every sense. Policy-makers are presently struggling with ways of managing these new economic challenges, while preparing their economies to perform well in a future economic landscape characterized by growing uncertainty. In a difficult global economic environment, it is more important than ever for countries to put into place strong fundamentals underpinning economic growth and development,” said Klaus Schwab, Founder and Executive Chairman of the World Economic Forum.

Xavier Sala-i-Martin, Professor of Economics, Columbia University, USA, and co-author of the Report added, “Amid the present crisis, it is critical that policy-makers not lose sight of long-term competitiveness fundamentals amid short-term urgencies. Competitive economies are those that have in place factors driving the productivity enhancements on which their present and future prosperity is built. A competitiveness-supporting economic environment can help national economies to weather business cycle downturns and ensure that the mechanisms enabling solid economic performance going into the future are in place.”

The rankings are calculated from both publicly available data and the Executive Opinion Survey, a comprehensive annual survey conducted by the World Economic Forum together with its network of Partner Institutes (leading research institutes and business organizations) in the countries covered by the Report. This year, over 13,000 business leaders were polled in 133 economies. The survey is designed to capture a broad range of factors affecting an economy’s business climate. The Report also includes comprehensive listings of the main strengths and weaknesses of countries, making it possible to identify key priorities for policy reform.

The Global Competitiveness Report’s competitiveness ranking is based on the Global Competitiveness Index (GCI), developed for the World Economic Forum by Sala-i-Martin and introduced in 2004. The GCI is based on 12 pillars of competitiveness, providing a comprehensive picture of the competitiveness landscape in countries around the world at all stages of development. The pillars include Institutions, Infrastructure, Macroeconomic Stability, Health and Primary Education, Higher Education and Training, Goods Market Efficiency, Labour Market Efficiency, Financial Market Sophistication, Technological Readiness, Market Size, Business Sophistication, and Innovation.

The Report contains a detailed profile for each of the 133 economies featured in the study, providing a comprehensive summary of the overall position in the rankings as well as the most prominent competitive advantages and disadvantages of each country/economy based on the analysis used in computing the rankings. Also included is an extensive section of data tables with global rankings for over 110 indicators.

This year’s Report also includes a number of discussions of selected countries and regions including the United States, the large emerging BRIC economies and the 12 recent accession members of the European Union, providing an in-depth analysis of the issues affecting national competitiveness.

Download the full Report (PDF 3.85 MB)

Mishcon de Reya launches Fraud Network website to fight rising international fraud

Mishcon de Reya announces the launch of the Fraud Network website, the online resource of the Fraud Network which consists of “tried and tested” Fraud Specialists across the globe. The Firm decided to set up the website to allow clients to easily find a creative, aggressive and experienced lawyer in another jurisdiction, who is recommended, respected and capable of handling sensitive and complicated fraud cases.

The Fraud Network has been growing over the years and now consists of over 25 legal experts in fraud and anti counterfeiting from 21 different countries who can share knowledge and work together to investigate international fraud matters for clients, obtain multi-jurisdictional injunctions to freeze assets or preserve evidence, trace and recover assets which have been dissipated internationally and much more.

Gary Miller, Founder of Mishcon de Reya’s Fraud Group and Founder and Fraud Network coordinator of the Fraud Network, commented: ”With the rise of international fraud it is important for clients to find a legal team they trust, while under a lot of pressure to take decisions within a short timeframe. The Fraud Network and its new website provide them with the assurance to find talented lawyers via a few 'clicks', who together form a successful international team.”

Only individuals - not their firms - are eligible for membership of the Fraud Network. The Fraud Network provides the client with at least one referee for each member and they do not earn 'commissions' or other financial incentives for referring clients to members.

Jersey FSC: Amendment to Money Laundering

The Commission has published today a Consultation Paper that sets out proposed amendments to the Money Laundering (Jersey) Order 2008 (the “Order”).

The Order requires businesses within its scope to apply customer due diligence measures, to keep records, and to have policies and procedures in place to prevent and detect money laundering and terrorist financing. Businesses that are covered by the Order include banks, investment businesses, trust companies, lawyers, accountants, and estate agents.

The main purpose of the draft Money Laundering (Amendment No. 4) (Jersey) Order 200- (“Amendment No. 4”) is to deal with some of the technical points that have been raised in a recent review of Jersey’s framework to prevent and detect money laundering and terrorist financing by the International Monetary Fund (the “IMF”). That review has now been completed and the IMF’s final report is expected shortly.

The paper also considers the possibility of extending the power that is given in Article 23C of the Order to the Minister for Treasury & Resources to apply countermeasures, where this may address a particular risk of money laundering or terrorist financing.

The main effect of Amendment No. 4 would be to:

• Clarify the application of customer due diligence measures to trusts and other legal arrangements.
• Clearly set out the records that a Money Laundering Compliance Officer and Money Laundering Reporting Officer must have access to in order to carry out their statutory functions.
• Require particular attention to be paid to implementing policies and procedures that are sufficient to prevent and detect money laundering and terrorist financing in subsidiaries and branches that are situated in countries and territories that do not, or insufficiently apply, the Financial Action Task Force Recommendations.
• Restate the requirement that customer information must always be collected before a relationship is established - where a customer is introduced by one business to another.
  Amend the scope of some of the concessions that may be used when applying due diligence measures to a customer who is considered to present a low risk of money laundering or terrorist financing.
• The proposed amendments have been discussed with the Commission’s Steering Group for the Prevention and Detection of Money Laundering and Terrorist Financing.

A copy of the Consultation Paper can be downloaded from the Commission’s Website by clicking here

G20:Meeting of Finance Ministers and Central Bank Governors

1. We, the G20 Finance Ministers and Central Bank Governors, met ahead of the Pittsburgh Summit to assess our progress in delivering the Global Plan for Recovery and Reform and agree further actions to ensure sustainable growth and build a stronger international financial system. We reiterated the need for swift and full implementation of all the commitments made at the Washington and London Summits and have agreed the further necessary steps to strengthen the financial system, as set out in the accompanying declaration.
2. Our unprecedented, decisive and concerted policy action has helped to arrest the decline and boost global demand. Financial markets are stabilising and the global economy is improving, but we remain cautious about the outlook for growth and jobs, and are particularly concerned about the impact on many low income countries. We will continue to implement decisively our necessary financial support measures and expansionary monetary and fiscal policies, consistent with price stability and long-term fiscal sustainability, until recovery is secured.
3. We must build on what we have already achieved and tackle the significant challenges that lie ahead. It is vital for growth that we act to support lending, including dealing with impaired assets and conducting robust stress tests where necessary. We must promote employment through structural policies, active labour market policies, and training and education. We will work to address e xcessive commodity price volatility by improving the functioning and transparency of physical and financial markets and promoting a closer dialogue between producer and consumer countries. We welcome the swift implementation of the $250 billion trade finance initiative and reaffirm our commitment to fight all forms of protectionism and to reach an ambitious and balanced conclusion to the Doha Development Round.
4. We agreed the need for a transparent and credible process for withdrawing our extraordinary fiscal, monetary and financial sector support as recovery becomes firmly secured. Working with the IMF and the FSB we will develop cooperative and coordinated exit strategies, recognising that the scale, timing and sequencing of actions will vary across countries and across the types of policy measures.
5. We will work to achieve high, stable and sustainable growth, which will require orderly rebalancing in global demand, removal of domestic barriers and promotion of the efficient functioning of global markets. The need to combat climate change is urgent, and we will work towards a successful outcome in Copenhagen.
6. We have made significant progress in strengthening the IFIs, but more needs to be done. We are close to completing the delivery of $850 billion of additional resources agreed in April, including an expanded, more flexible New Arrangement to Borrow; and $50 bi llion to support social protection and safety nets, boost trade and safeguard development in low income countries. We welcome the overhaul of the IMF’s lending facilities. We encourage the Multilateral Development Banks to make full use of their balance sheets and reaffirm our commitment to ensure they have appropriate capital, recognising that they are fully on track to deliver $100 billion of additional lending. In the period ahead we need to focus on providing resources to low income countries to support structural reforms and infrastructure development.
7. We look forward to prompt implementation of the 2008 IFI governance reforms, and will complete World Bank reforms by Spring 2010 and the next IMF quota review by January 2011. We recognise that the IMF should remain a quota-based organisation; and as part of the reforms, the voice and representation of emerging and developing economies, including the poorest, must be significantly increased to reflect changes in the world economy. To achieve this we look forward to substantial progress in Pittsburgh. We also reaffirm our commitment to increase a ccountability, strengthen the involvement of Fund Governors in strategic oversight, and agree to move to an open, transparent and merit-based selection of IFI management. To improve the role and effectiveness of the Fund in supporting stronger cooperation and ensuring a more sustainable global economy and international financial system, candid, even-handed, and independent surveillance will be vital. We call on the IMF, working with other international institutions, to continue assessing our actions to secure a sustainable recovery.

Declaration on further steps to strengthen the financial system, 5 September 2009 (PDF 15.5KB)

Progress report on the actions of the London and Washington G20 Summits, 5 September 2009 (PDF 482KB)

Bangkok's Bumrungrad Hospital: Expanding the Footprint of Offshore Health Care - Knowledge@Wharton

It's been called the Mecca of medical tourism. For the past 10 years, Thailand's Bumrungrad International Hospital has been wooing patients from Boston to Bahrain with a combination of lower-cost, state-of-the-art medical care along with service worthy of a five-star hotel. In what seems far from the hustle and bustle of the streets of Bangkok, more than one million patients, including some 40% from over 190 countries, visit every year for treatment at Bumrungrad's high-tech, upscale facilities...

http://knowledge.wharton.upenn.edu/article.cfm?articleid=2327

OECD Global Forum consolidates tax evasion revolution in advance of Pittsburgh

Today, on the eve of the Pittsburgh G20 meeting, the Global Forum on Transparency and Exchange of Information dealing with tax matters, took major steps to confirm the end of the era of banking secrecy as a shield for tax evaders.

Hailing the breakthrough OECD Secretary-General Angel Gurría said “what we are witnessing is nothing short of a revolution. By addressing the challenges posed by the dark side of the tax world, the campaign for global tax transparency is in full flow. We have equipped ourselves with the institutional means to continue the campaign. With the crisis, global public opinion’s expectations are high, their tolerance of non-compliance is zero and we must deliver”.

Representatives from the Forum which now numbers almost 90 jurisdictions around the world and a host of International Organisations gathering in Mexico, took concrete steps to empower the Global Forum to play the leading role in the global campaign to fight tax evasion.

Building on the extraordinary progress made in the last few months to incorporate the globally accepted standards developed by the OECD in both new and existing agreements, the Forum took the following key decisions:

Teeth: to put in place a robust, comprehensive and global monitoring and peer review process to ensure that members implement their commitments; a Peer Review Group has been established to examine the legal and administrative framework in each jurisdiction and practical implementation of these standards. A first report on monitoring progress will be issued by end 2009.

Extended Global Reach: to further expand its membership and to enshrine the principle that all members enjoy equal footing.

Faster Agreements: to speed up the process of negotiating and concluding information exchange agreements including exploring new multilateral avenues.

Developing country assistance: to put in place a coordinated technical assistance program to assist smaller jurisdictions to implement the standards rapidly.

In its Assessment of Tax Co-operation in 2009 issued on Monday “OECD assessment shows bank secrecy as a shield for tax evaders coming to an end”) the Global Forum highlighted that the standards on transparency and exchange of information pioneered by the OECD are now almost universally accepted and that extraordinary progress has already been made towards their full implementation.

The Global Forum’s conclusions will be reported to the G20 Finance ministers who will be meeting in London on 4-5 September and to the meeting of the G20 Leaders Summit in Pittsburgh on 24-25 September.

The Forum also agreed on the need to convene regularly, with the next meeting scheduled for 2010.

Background

The Global Forum on Transparency and Exchange of Information was created in 2000 to provide an inclusive forum for achieving high standards of transparency and exchange of information in a way that is equitable and permits fair competition between all jurisdictions, large and small, developed and developing. The initial group of jurisdictions numbered 32. It now brings together almost 90 jurisdictions. It has been the driving force behind the development and acceptance of these international standards. The 2009 Global Forum meeting was its fifth, the last taking place in 2005.

In 2002, Global Forum members worked together to draft a Model Agreement on Exchange of Information on Tax Matters which is now used as a basis for bilateral agreements. Since 2006, the Global Forum has published annual assessments of the legal and administrative frameworks for transparency and exchange of information in more than 80 countries.

Its most recent assessment, Tax Co-operation 2009: Towards a Level Playing Field based on information available up until 31 July 2009, was published on 31 August 2009.

Since the London G20 meeting in April, over 50 new Tax Information Exchange Agreements have been signed (doubling the total number of Agreements signed since 2000) and over 40 double taxation conventions have been signed.

As a consequence, a further 6 jurisdictions have since substantially implemented the internationally agreed tax standards.

Read the summary of outcomes from the meeting

Read the speech by the OECD Secretary-General

Read the latest progress report

Read the latest assessment by the Global Forum.

Reuters Global Wealth Management Summit

Reuters Summits are the 'must read' for those trading and investing in today's financial markets. Bringing together top executives from the biggest companies in the world with our global teams of specialist journalists, the Summits provide you with the news and content that will help in forming your decisions.

The upcoming Reuters Wealth Management Summit will focus on a variety of issues ranging from what are the lessons that wealthy investors learned during the financial crisis to what kind of products are investors looking for now to whether or not industry players expect to see more consolidation in an industry that has already shrunk.

The 2009 Reuters Global Wealth Management Summit in Boston, Geneva, Tokyo and Singapore will be held October 5-7

Upcoming Summits:

Global Wealth Management Oct 5 - 7 Boston, Geneva, Tokyo, Singapore
Washington Oct 19 - 21 Washington, DC
Middle East Investment Oct 26 - 28 Dubai, Kuwait
Autos Nov 2 - 4 Detroit, Paris
Health Nov 9 - 12 New York
Global Finance Nov 16 - 19 New York, London, Hong Kong
India Investment Nov 23 - 25 Mumbai, Bangalore
Global Media Nov 30 - Dec 3 New York, London, Asia
Investment Outlook Dec 8 - 10 New York, London
Aerospace and Defense Dec 14 - 16 Washington, DC

Conyers appoints Fund Specialist as Head of Mauritius Office

Multi-jurisdictional law firm Conyers Dill & Pearman today announced the appointment of Craig Fulton as Head of its Mauritius office. Craig will focus on generating business in the burgeoning markets of India and Southern Africa as the firm continues its major business development push into these regions.

Craig has relocated from Conyers’ Bermuda office, having worked for several years prior to that in the firm’s Cayman Islands office, where he specialized in hedge funds and private equity investments. Prior to joining Conyers, Craig was Head of Legal Affairs (Western Hemisphere) for Fortis Bank and Fortis Prime Fund Solutions in the Cayman Islands. Craig holds a Bachelor of Commerce and a Bachelor of Laws from the University of Natal, Durban.

Craig’s significant corporate and investment funds experience will bring added benefits to clients as FDI into India and Africa through Mauritius continues to grow. In addition to lawyers in Mauritius, Conyers also has a dedicated team of Mauritius lawyers in Dubai and London.

John Collis, Chairman of Conyers, commented: “Craig’s intelligence, energy and enthusiasm will add tremendous value to our Mauritius practice. His broad corporate and funds experience will strengthen our capabilities in Mauritius, which focuses particularly on investment funds, private equity funds, joint ventures, and banking and finance transactions. Mauritius is an important market to us, and Craig’s appointment reflects our commitment to providing the highest quality legal advice in locations convenient to our clients.”

Craig said of his move: “I look forward to developing Conyers’ Mauritius practice with our expert team of Mauritius lawyers. Conyers’ work in the region has already led to a significant number of instructions and client demand is growing. With its focus on complex investment funds work, our Mauritius office promises exciting prospects.”

Craig’s appointment as Head of office follows Conyers’ formal launch of its Mauritius practice in June, a result of recent amendments to Mauritius law which allow foreign law firms to be established there. In July, Conyers also bolstered its Mauritian expertise in London with the addition of Devalingum Gopalla, who specializes in investment funds. Craig and Dev complement Sonia Xavier in Dubai and Nicolas Richard and Sameer Tegally in Mauritius. In addition to Mauritius, Conyers advises on the major offshore jurisdictions of the Cayman Islands, British Virgin Islands and Bermuda.

HSBC Mauritius Seminar : 'Derivatives - New Legal Framework and Business Opportunities'

The recent enactment of the Insolvency Act 2009 is a major development for Mauritius International Financial Centre as it provides for the legal enforceability of "netting" for financial instruments such as derivatives.

The new legal framework will facilitate the settlement of transactions on derivative products, namely, interest rate swaps, currency swaps and currency options, and allow us, for instance, to implement standard international legal documentation such as ISDA agreements.

At HSBC we believe that this recent development presents opportunities that can benefit our clients. You will have the oppotunity to listen to our guest speaker, Mr Iqbal Rajahballee, renowned counsel from BLC Chambers, who will be able to enlighten us on the recent legal developments. The seminar will also aim to show the relevance of derivatives and structured products in today's market environment.