gray: ‘showing commitment’
Tax scrutiny
by UK prompts
Guernsey to
revise QROPS
Guernsey has tightened its
QROPS regulations amid
concern its schemes were
being used for pensions
‘busting’.
The island approached
the UK’s HMRC in a preemptive
move, following
suggestions that it was
investigating Guernsey’s
tax treatment of overseas
pensions. There were fears
Guernsey would receive
the same treatment as
Singapore earlier this year,
when all local pension
schemes were removed
from the QROPS list.
HMRC has never commented
on it decision but
it is widely acknowledged
QROPS pensions domiciled
there were not acting
‘in the spirit’ of the rules,
principally in the way benefits
were taken.
Guernsey has changed
its rules to stop a nonresident
transferring to a local
HMRCapproved scheme
and then winding it up
and taking the entire lump
sum taxfree. The revision
means the maximum taxfree
lump sum is 25%.
It has also closed a
loophole that allowed a
UK pension to transfer into
a local scheme and then
out to a third, nonQROPS
in a different jurisdiction.
Rob Gray, Guernsey
administrator of income
tax, said: “These conditions
demonstrate Guernsey is
committed to ensuring that
pension schemes are used
for the purpose for which
they are established.”
SEI rolls out multi-manager
funds for Islamic investors
By helen Burggraf
SEI, the USbased manager
of managers funds specialist,
has brought a 17monthold
range of four
Shariahcompliant funds to
South Africa, where it aims
to give offshore investors
exposure to a choice of key
equity markets.
SEI said it was the first
time that Muslim investors,
keen to remain compliant
with Islamic investment
principles, would be able
to take advantage of the
firm’s manager of managers
programme.
SEI’s new Islamic US
Equities, European Equities,
Emerging Markets Equities
and Pacific Basin Equities
funds were launched in
Europe last year, according
to Russell Bodill, SEI South
Africa sales director.
Obama win stokes fears of offshore tax blacklist
Barack Obama’s win in
the US presidential elections
has added to unease
in offshore centres over
their possible inclusion on
a blacklist of tax havens.
Obama cosponsored a
2007 Bill, known as the
Stop Tax Haven Abuse Act.
Observers believe he may
go ahead with measures
that will reduce US taxpayer
use of certain offshore
South Africa’s FirstRand branches out
with launch of Jersey-based operation
FirstRand, the South African
financial services group,
has launched a Jerseybased
wealth management
operation to cater for highnet
worth individuals outside
of its home territory.
The new business also
has offices in Dubai, and
is expected to expand into
India in 2009.
It hopes to reach what
it regards as a growing
SEI said it is currently
being advised in the management
of the funds by
Benchmark vs non-Shariah index
20
%
10
50
40
30
-10
0
-20
Nov ’05 May ’06
Source: Lipper
Funds facts
Dow Jones World
financial centres, as he
seeks to mitigate the effects
of the financial downturn.
A key question is whether
jurisdictions that have
complied with Organisation
of Economic Cooperation
(OECD) standards will be
spared. Senator Carl Levin,
the bill’s other sponsor,
claims the US Treasury loses
$100bn annually through
“offshore tax abuse”.
number of affluent and
mobile investors from
developing nations in the
Middle East and Asia.
“This represents the first
time FirstRand has taken
its successful wealth management
model outside of
South Africa,” said Stephen
Kearns, chief operating
officer at FirstRand Private
Wealth Management.
Kearns, who said that
December 2008 [www.international-adviser.com] INTerNATIONAL ADVISer 11 7
Nov
Dow Jones Islamic
Market World
Names: SeI Islamic uS equities, european equities, emerging Markets
equities and Pacific Basin equities Domicile: Ireland Charge: Depends
on client AMC: 2.1% (trail 0.5%) Min investment: Institutional – $5m;
retail – depends on distribution partner
a board of three Muslim
scholars.
www.seic.com
May ’07
Nov
Officials from Jersey
highlighted that although
the Crown Dependency
was one of 34 countries
originally named in Levin’s
bill, it has since signed
socalled Tax Information
Exchange Agreements
(TIEAs) with the US and
seven other countries.
Guernsey and IoM officials
share this cautious
optimism.
a London office is also
being planned, joins from
Ashburton, FirstRand’s
Jerseybased asset management
company, as does
Trevor Falle, FirstRand
International Wealth’s chief
executive.
The Dubai operation is
headed by Vijey Kapoor,
who will also be chief
executive of the India business
when it is launched.
NEWS
May ’08
Nov
NEWS
Headline over two please
Head
over two
IN BRIEF
Standard Life adds
offshore to helpline
Standard Life
has expanded the
service provided
by its technical team
to include help for
advisers on offshore
investments. The new
offshore service forms
part of techZONE,
Standard Life’s range
of technical support
for registered advisers,
by phone and online.
Jupiter makes Merlin
more accessible to UK
Jupiter Asset Management
has activated
the sterling class for
its Jupiter Merlin
International Equities
Portfolio, making it
more accessible to UK
investors. But it is not
yet registered for UK
retail distribution.
T Rowe Price expands
scope of Sicav range
T Rowe Price has
launched a global
real estate strategy.
It will be available
to investors via
a segregated account
and the firm’s
Luxembourgdomiciled
Sicav range. The fund
is currently approved
for distribution in
Luxembourg.
S&P grants AA and
A ratings to VAM
The VAM US Micro
Cap Growth and the
US Small Cap Growth
funds have received
AA and A ratings,
respectively, from
Standard & Poor’s.
The VAM Funds (Lux)
range, to which
the two products
belong, is managed
by Driehaus Capital
Management.
For the current and all
previous editions, with
full news archive, go to
www.international-adviser.com
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