Number 31

ISSUE 31

S MEET OUR MEMBER

LATEST INSIGHT FROM LATAM & MIDDLE EAST PCD Hosts 4 expert Panels in switzerland

DIVE IN!

GET BACK IN THE SWIM ROLL UP, ROLL UP… FOR A BALANCED VIEW!

REPLAY>>>> PROTECTING PASSION ASSETS

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We know what it takes to succeed and keep succeeding.

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EDITOR’S INTRO

Roll up, roll up… for a balanced view!

by Nick Portet, Creative Director | Wreyford

It’s a long time since I last went to the circus, but when I did it was the acrobats that transfixed me. Two performers working in perfect harmony, executing astounding feats of balance far beyond the capabilities of mere mortals. This edition of your PCD magazine took me right back to the big top. Don’t worry, David’s not planning on donning a leotard and taking to the high-wire - but take a look at his article on the new collaboration between PCD and technology platform STAK, and you’ll see how two different, but like-minded, businesses can work together in real harmony.

many of us right now remains the return to the office vs continuing to work from home. Here at PCD we’re enjoying hearing your stories about reuniting with colleagues at the office, and retaining some of the focus, flexibility and balance that the pandemic’s new working realities delivered. David touches on this in this edition’s Privateer, along with some wise words for employers on navigating the war for talent and retaining important team members.

David bravely opens his article with his heart on his sleeve, voicing the hopes and fears that so many of us have for the year ahead. He is right of course to balance his infectious optimism with the reality that nothing is certain anymore, but with positive signs everywhere we look, equilibrium is what’s called for right now. Prime or corporate, in person or online - you’ll find all of this and more as a PCD member. Few of us may have the skill or inclination to take to the circus ring, but I’m certain that we can all find the balance needed to juggle the ups and downs of 2022 in style.

Balance is everywhere in these pages.

Turn to the reviews of our panel events and you’ll find the varied, independent, balanced views PCD has become famous for. Elsewhere, the article on passion investing reminds us all that – from fine wine to classic motoring – it’s important to balance the drive for investment returns with a real interest in what you are investing in. (No problem for me on the wine front!).

Of course, the biggest balancing act for

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THE PRIVATEER

The Privateer: Diving in

by David Bell, Founder | PCD Club

3 days a week back in the office; time will tell how this works out. If you were being interviewed today for a new role, the number of days in the office would be a central question. Pre-pandemic, working from home was regarded as a Entering 2022, it feels treat or perk for those senior and trustlike diving into deep wa- ed enough to do so, not something peoter. No one knows where ple negotiated on entry to the firm. the bottom is. What does this year have in store for us? Weeds in the deep? Are there crocodiles ready to drag us down to the bottom? The optimist in me feels like we are on our way out of the pandemic. We can’t see all the dangers from the bank but we have no choice other than to dive in anyway and get back in the swim.

When I look towards the end of the year, I remain hopeful that locaIn the UK, most professionals are tions like Miami & Singapore will still hopeful and looking forward to a more be possible. We are confident that our social year ahead. But we won’t go events in London, Manchester, Swit“back to normal”; after 24 months, busi- zerland, Channel & Islands, Isle of nesses have had to adapt and now flexi- Man & Dubai will be safe to execute ble working is part of the deal most pro- and enjoyed by our members and sponfessionals are looking for. Those who sors as they did in Autumn 2021. throw out WFH too soon may find staff VIEW 2022 EVENTS HERE leaving for competitors. It will be a careful journey out of the pandemic that will be difficult to navigate.

In March, we are launching a new lunchtime forThe consensus among professionals I mat for our NextGen auspeak to seems to have settled around dience (those with 5 years

FOR OUR PART, WE ARE HERE TO KEEP BRINGING PEOPLE TOGETHER THROUGH LIVE EVENTS.

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THE PRIVATEER

or less professional experience). We have created this format because many young professionals have been starved of professional contacts and face time with their peer group. The structure will be a seated lunch for 50 on a Friday.

I think that firms are ready and willing to support this format in a way that they weren’t pre-pandemic. We hope it is a success and we can repeat the format over the course of the year. View our last NextGen event here.

NEW for 2022

DURING THE NOVEMBER DINNER IN LONDON, I ANNOUNCED THE LAUNCH OF TWO NEW BUSINESSES:

This is a digital content & marketing consultancy business, where professionals can buy webinar sponsorship packages, video content packages, consultancy & ideas calls. The website for this new venture will be launched imminently so look out for it.

WE EXPECT MANY EVENTS TO BE PLANNED BETWEEN MAY - SEPTEMBER IN A “SUMMER SEASON” WITH THE WINTER EVERY YEAR BEING A LESS PREDICTABLE TIME TO ORGANIZE AN EVENT.

This is a new portal that we are launching to share international private client case studies via an on-demand training platform. The content will be CPD qualifying, practical in nature and focus on cross-border investment and wealth planning considerations for wealthy international clients. The platform will be live for a pilot by the next London dinner in March.

WHAT ARE YOU EXPECTING FOR THE YEAR AHEAD? CLICK TO EMAIL MAGAZINE@PCD.CLUB WITH YOUR THOUGHTS AND COMMENTS. WE ARE ALWAYS HAPPY TO HEAR FROM OUR MEMBERS. THANKS FOR YOUR ONGOING SUPPORT AND WE LOOK FORWARD TO SEEING YOU AT EVENTS IN 2022.

OUR FULL EVENTS LISTING CAN BE FOUND HERE 5

LETTER TO THE EDITOR

Letter to the Editor

The greatest gift!

you might define “optimal,” and there are many ways to do so), one would be wise to bring those ‘Outlaws’ (word chosen intentionally, partly in jest, and with great love and appreciation for the many Outlaws I am lucky to have in my extended family) fully into the fold even before they are married. Keeping a family cohesive across generations is possibly the greatest gift one can give to descendants, whether wealthy or not.

Pierre du Pont (G8, G5 and father/ son/sibling/cousin-to-many).

I enjoyed reading the article about trusts and divorcing spouses by Messrs.

Campbell, Evans and Yates: they have written well about a complicated and nuanced issue. I would suggest the Court’s ruling, and the case history behind it, presents, in a round-about way, an important message for grantors, inheritors and wealth-creators: spouses are essential for the future health, evolution and cohesion of a family. If there is any hope of keeping an extended family together across decades and even centuries while keeping the family wealth optimally beneficial (in whatever way

Find Pierre on LinkedIn

WIN A BOTTLE OF BUBBLY We’re looking for stories, ideas and opinions with real appeal for our members. To submit a ‘letter’ for publication here, email your content to lucy@pcd.club. Please keep it short (max 200 words) and exclusive.

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UPCOMING - GENEVA AND JERSEY

Geneva Join us on Tuesday 17 May 2022

highlights video Info + book Tickets Here

Jersey

Join us on Tuesday 14 June 2022

highlights video Info + book Tickets Here 7

REPLAY>>>> Watch our recent Hot Seat LIVE interviews from Dubai.

Book your Hot Seat live with david: Contact members@pcd.club

JANINE CUBBON

MOHAMMED ASARIA

NARO ZIMMERMAN

ANGELA CALNAN

AIDEEN KEMPSON-HOPKINS

CARLTON CRABBE

SUBSCRIBE HERE 8

From the window seat to the hot seat.

Make the most of your time when you travel and Book an interview with david in the hot seat LIVE. The hot seat offers bespoke content for you and your business Book yours at members@pcd.club

STAK

The Benefits STAK Up

by David Bell, Founder | PCD Club

IN 2021, I ANNOUNCED THAT I HAD INVESTED IN A NEW PLATFORM:

I was interested in this business because I am an advocate for technology helping to solve business development and marketing challenges for professionals, particularly for international private wealth specialists.

Covid has accelerated trends in online marketing that already existed and served to highlight the need to use all tools available to deliver new business.

STAK has been built by professionals who deeply understand the industry and its challenges and the platform is designed to occupy the ‘Goldilocks zone’ for business development.

PCD Club members receiving this newsletter are pre-verified* and can register via this pre-approved link:

Why do I believe in this digital platform?

CLICK HERE

It is the world’s only exchange for professionals serving private wealth; It uses a sophisticated but intuitive platform to allow professionals to add opportunities to the portal but also to pitch for business that they would be able to deliver; At its core, is the principle that advi-

* (subject to T&C’s)

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STAK

sors want to do an honest job for their clients and often need to find solutions by best in class professionals outside their network; Quality of source is so important to outcome, and STAK pre-verify the claims of users to ensure they are genuine wealth professionals or family offices. Those users also have to indicate if the opportunity they share is for their client or what their relationship is.

Conflicts of interest controls, regulation and internal policies are making origination so so difficult: using a neutral platform to run a transparent tender process is just smart.

Family Office professionals value the platform because the UHNW families they represent need access to services and dealflow, but need to engage with professionals carefully to protect their clients and manage their time efficiently.

purely trying to bring efficiency to the market. Client names are not captured on STAK. STAK currently only registers individual professional members or family offices with access to business profile pages, enhanced search tools, anonymised peer comparisons and analytics on industry sources, won and lost opportunities STAK are trying to change habits and behaviours: the ranking tool goes live imminently and rewards ‘good actors’ who contribute opportunities and who are disciplined in responding to queries from interested parties. Good actors will be highly ranked and get more leads.

Non-advisers with sellside opportunities or specialist capabilities (brokers, private equity) will be able to present opportunities or services to the family office community for a fee share.

How can professionals access the platform?

Qualified professionals can register for the platform free of charge at STAK.global and PCD Club members receiving this newsletter are pre-verified (subject to T&C’s) and can register via this pre-approved link: https://stak.global/sponsor/UT3oLi;

How can I find out more?

Register on the platform: www.stak.global/sponsor/UT3oLi and you will receive a newsletter and full details of ‘How it Works’ plus a dedicated STAK contact.

What’s the business model?

Read on for virtual business card Offer

Professional advisors will never pay to have a profile on the platform; STAK does not deal with private clients and is 11

VIRTUAL BUSINESS CARD OFFER

will be shared via PCD Club and STAK channels with a combined database of over 50,000 and 25,000 Linkedin followers, as well the ability to share via your own social channels or website.

This offer is exclusive to members of STAK at a cost of £500 + VAT where applicable, payable to PCD to cover the cost of production/ media.

PCD Club and STAK are collaborating to highlight and showcase some of the professional service providers that are available on the platform.

We are offering STAK members:

Enhanced offer:

The opportunity to produce a

For those seeking further promotion and media content that can be re-used at your leisure, an enhanced option includes:

3-minute virtual business card featuring:

Corporate logos and branding, alongside the PCD Club & STAK brands; Professional editing, B-roll & graphics with a 'call to action'; Subtitles to assist engagement on social channels;

12-15 minute interview discussion with host David Bell on agreed topics/ themes; 4 short clips for social media, unbranded STAK/ PCD; Enhanced graphics and production.

The cost of an enhanced virtual business card is £1,500 + VAT where applicable, payable to PCD to cover cost of production/ media.

The video will be recorded on Zoom, following advice from the PCD Club team on the optimal setup for recording. Once produced and signed off, it

Email members@pcd.club today with “Virtual Business Card Promotion” and we will book you in.

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PRIME E T A R O P COR

Join the Club with A 2022 Membership PRIME

CORPORATE

£500

£1200

Number of guaranteed dinner tickets

2

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Record Hot-Seat interview with David Bell

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2

Annual membership fees (ex VAT)

Able to share membership between colleagues?

Access to our Global Webinar Updates and Digital Magazine

Feature in content for PCD Club Digital Magazine

Submit Articles (PCD digital magazine/ website / social media channels)

New

Complimentary 12 months access to our new “HNW Advisor” platform (worth £250 per subscriber) Access to NextGen Forum

WHICH MEMBERSHIP IS RIGHT FOR ME? Contact members@pcd.club to discuss how we can help you grow your opportunities.

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REPLAY>>>>

Protecting Passion Assets

Over recent years, the had a big impact and added a layer of luxury asset market has complexity to the distribution process. boomed.

Nicolas Laurent of Wine Chris Eaton, of ILS World, Portal in Singapore, says Isle of Man, has seen a that taste is the ultimate enchange of trust asset class joyment for his clients, and this is the from traditional stocks and shares to basis for advising a new client exploring cars, gems, wine and art. In ILS World’s the wine industry. He encourages them capacity as international fiduciaries, it is out of their comfort zone, introducing important that they seek expert advice them to new vintages, wine regions and on looking after these “passion assets” to often arranging a trip to a vineyard to ensure they are acting in the best inter- meet the producers, thereby “creating a ests of their beneficiaries. story behind the purchase”, which is “essential with all passion assets”. However, Henry Pruwer, of HP Di- regardless of whether the client is buyamonds Ltd, says that di- ing wine to drink, or to resell, diversiamonds are “very much an fying a collection is important, ensuring emotional investment”. High quality and exposure “to mitigate your risk and inrarity are two factors which will ensure crease your liquidity”. a diamond holds its value. Since economies have opened up post Covid, de- When purchasing wine, provenance mand for diamonds is strong, and cou- should be tracked; a purchase must be pled with a lack of supply, prices are from a reliable source. Wine should be actually on the increase. However, it stored professionally at the correct temstill remains to be seen how London, as perature, and should be stored duty free, the largest diamond dealing centre in so as not to attract VAT in the country it the UK, copes with Brexit; the removal is kept. London is still the global hub for of the VAT refund scheme has already wine trading.

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REPLAY>>>> Classic cars are passion assets “bought for their use and enjoyment”, says Peter Wallman of PJ Wallman, in London.

A client needs to “experience the car market at the beginning” by attending rallies and race meetings. They should be clear on what their objectives are.

cle through which a family can generate income from an asset, whilst protecting that asset, preserving its ownership, and preventing its disposal by the next generation. A foundation acts as an entity in its own right; it owns the asset. The council members do not owe a fiduciary duty to the qualified recipients, as trustees do to beneficiaries in a trust strucAside from storage, costs are relatively ture. low. There is no road tax on older vehicles, no MOT is needed, and insurance If assets are being bought or sold, due costs are “very affordable” as insurers diligence is vital. “Make sure all the right know that classic cars are well looked questions are asked,” says Sunita. Workafter and driven infrequently. Howev- ing with experts in the passion asset er, like the diamond market, Brexit has field is very important to ensure the clihad VAT implications for classic cars. ent gets what they want whilst “ensuring Pre-Brexit, an owner could move a ve- the acquisition is done properly and in a hicle around Europe without any VAT sustainable manner”. implications. Now, however, if the car is under 30 years old, 20% VAT is payable Chris agrees. As a fiduciary, “you’ve got in the country it is moved to (5% if over to rely on the experts” to ensure that 30 years old). This will no doubt “create the way the assets are held, where they friction in the classic car market”, Peter are stored and how they are insured is says. all done in the right way, whilst ensuring sensible protections are put in place Over the last couple of around the use and enjoyment of those years, Sunita Singh-Dalal, assets. of Stephenson Harwood in Dubai, has seen an increased interREPLAY HERE est in preservation of ancestral legacy wealth. During the pandemic, families have become more aware of how they can leverage these ancestral assets.

Maintaining privacy and confidentiality is important in doing so, and therefore SUBSCRIBE a foundation structure is an ideal vehi-

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L ATAM PANELS IN SWITZERL AND

LATAM Panels in Switzerland PCD CLUB HOSTED TWO EXPERT PANELS IN SWITZERLAND to discuss the latest trends in investment, structuring, tax and wealth planning for high-net-worth clients in Brazil, Mexico, Peru and other key private wealth markets of the Latin American region.

now to be extended from six to ten years.

The UK also has its ‘non-dom’ tax regime, which attracts families.

Stefano

Demarco,

at Vontobel, said that despite the introduction of the CRS, and initial concern over that, clients Although the pandemic was not good still have an appreciation for Switzerland news for wealth management in Swit- and what it has to offer. zerland and globally, it was agreed that Switzerland has not lost its appeal for Alejandro Gil Rivero, at Latin American investors. However, it reSophós Advisors in Miami, mains the case that Switzerland is not the agreed that there was a prepreferred destination for these and post CRS period, but cliclients. Jennifer Mayo, ents still see Switzerland as “a safe haven”, at Anaford Attorneys, said where there is more discretionary manthat Portugal is very popular agement with stable portfolios in diverse for Brazilian families with its ‘non-dom’ sectors, including crypto which can now tax regime, and Spain’s ‘Beckham Law’ is be held in Swiss financial institutions.

ZURICH PANEL

There are also changes happening in the US which will inevitably see LATAM clients moving back to Switzerland, said Robert Reymond, at Charles Russell Speechlys, in London. Costs are going up for US trust companies, and the Cor16

L ATAM PANELS

porate Transparency Act means all US, Puerto Rican and US Virgin Island companies have to register with FinCEN. The US certainly does not have the same expertise as Switzerland in international trusts, private wealth and banking and trustee services. sees corruption in Latin America as one of the biggest problems which the governDaniel Vegue Dominguez, at Block ment may be forced to tackle – the infraAsset Management, said that structure around ESG gives an investor an “Switzerland has a deep un- opportunity to invest in a more regulated derstanding, not only in how and secure way. to protect clients, but also in how to protect privacy and innovation”. As a Jennifer has noticed an increase in entreresult of hundreds of years of innovation, preneurial venture capital in Latin Amerit was able to “embrace the digital trans- ican portfolios, investors for which are formation”. Switzerland has legislation looking to develop these projects outside understanding the digital space meaning the LATAM region, especially in the US it will be a key player in the global trans- and Europe. In general, there are good formation of blockchain. Switzerland is a opportunities for entrepreneurs in Switgood place to open a crypto account, said zerland, where the legal framework is very Daniel. It is of course a regulated environ- stable and the Swiss franc very strong. ment, and certain regulatory standards have to be met: “you have to prove your Jorge Carstensen, also at worth.” Traceability is very important. But Sophós Advisors in Miami, a client can have dialogue with the regusaid that “things have changed lator and Swiss tax authorities in an en- a lot since his grandparents’ generation”. vironment that “wants to support you as Today, governance, awareness, education, a wealthy individual to bring value to the and being surrounded by professional country”. advisors have all helped Latin American ESG investing has really come to the fore, evident in the recent demonstrations in Zurich, said Stefano. It’s more than a passing trend; there is a lot of intelligence, energy and investment being put into making portfolios more sustainable. Robert

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L ATAM PANELS IN SWITZERL AND

families in how their businesses are run, how funds are invested, said Robert. and how their assets are protected.

One of the things that has surprised SteGovernance can be ruled by a charter or fano the most during the pandemic is his family constitution, which determines clients’ willingness to “keep a cool head”. how wealth is to be passed to future gen- Once they had got over the initial panic, erations, which family members can ac- they soon realised that things would norcess the wealth, when and how much, and malise again.

LATAM Panels in Switzerland assets and structures whenever they need to.

Tomoé-Celine Castello,

at Borel & Barbey, agreed.

The Swiss legal system and the tax system are also attractive aspects of Switzerland; the lump sum taxation The Geneva panel also debated whether scheme has allowed LATAM clients to reSwitzerland is still a good jurisdiction for locate there, which would otherwise have LATAM clients. Justine Markovitz, been difficult without an EU passport. at Withers, said that the key ingredient that Switzerland Ultra-high-net-worth Latin American has over Latin America is families cannot afford to put stability. LATAM clients can all their eggs in one basket, trust providers in Switzerland to look afsaid Klemens Zeller, at JP ter their assets year after year. “There is a Morgan, therefore they canconfidence in the political and economic not rely on one single financial centre to regime in Switzerland and also in the indi- provide their financial services. The US viduals who form part of the industry.” Cli- and Switzerland have always been excelents can access information about their lent at providing financial services, and as

GENEVA PANEL

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L ATAM PANELS

a lot of LATAM families have European origins, it makes a lot of sense for them to have property in Europe. As Klemens said, “Switzerland is boring. Boring is good when it comes to private wealth.”

Justine has been surprised at how little reaction she has seen from her clients post the Pandora papers (and Panama before that). Being already aware of the CRS in place, clients are taking a different approach with regard to the exchange of information. They are more concerned with correct and consistent reporting which ends up in the right jurisdiction, rather than being worried about having to report in the first place.

now people are looking to move themselves. They are making decisions from a human perspective, said Justine. They are thinking more about family planning, and this has become even more evident during the pandemic where people were unable to move.

However, relocating to Switzerland is easier said than done. Tomoé has had a lot of interest during the pandemic from clients wishing to relocate there but obtaining a residency permit is very difficult and setting up a company very complex. There is real value in having a second passport, especially a European passport, which is a “door opener”, said Klemens. The best relocation plans are because of a “legitimate reason” such as business expansion, because otherwise plausibility tests applied by banks, trustees and lawyers would not be passed.

Many Latin American countries have more and more domestic disclosure obligations, so families are already being asked to disclose information on trust reporting and company reporting such as in Argentina and Columbia, and in Mexico, the tax advisors are also part of the reporting regime. So, reporting is nothing new; “confidentiality is tenuous”, said Klemens, and “transparency is here to stay.”

Clients can however “vote with their feet”, Justine has noticed a trend towards simsaid Klemens, and move to jurisdictions where they are more comfortable with the laws, or where they feel less exposed or threatened. Mobility has become a key theme for these clients. Gone are the days where people looked to move their assets and structures to different jurisdictions,

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L ATAM PANELS IN SWITZERL AND

plification of structures. Often there is good reason for a more complicated structure, but often it is “a legacy from the past”; clients are now looking at their structures and asking, “are they fit for purpose?”. Clients want to make their structures simpler, more tax-efficient, more regulated, all while ensuring the correct reporting mechanisms are in place. Klemens said it is vital to have “your ducks in order” with correct documentation, accounts and statements all properly updated. This is especially important with ever more aggressive tax authorities. The sim-

pler the structure, the easier it is to explain and defend.

The pandemic has also highlighted the issue of economic substance, where people have been in different places to where they might normally have been. Although the tax authorities have been more relaxed as of late, this won’t last and it’s important to be vigilant about ensuring a structure does not fall foul of the substance rules: ensure entities are being managed in the correct way and in the correct jurisdiction.

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Middle East Panels in Switzerland PCD CLUB HOSTED TWO EXPERT PANELS IN SWITZERLAND to discuss the latest trends in investment, structuring, tax and wealth planning for high-net-worth clients in the Middle East, North Africa and Turkey.

Zeki Kostas is an inde-

pendent tax advisor based in Switzerland, acting for Turkish clients. Due to the country’s political and economic instabilities, Turkish clients with foreign assets are more focused on asset protection than income and seek structures which will protect assets and defer tax liabilities where possible. Products such as life insurance policies, bonds and certificates are used to achieve this.

ZURICH PANEL

Lisa Cornwell Webb, at

PWC, deals with Middle Eastern families who have generated their income onshore through family businesses and then diversified their assets abroad. She sees different family dynamics at play and therefore “having an agreed purpose and values within the family is really important” for family governance.

Trident Trust acts on behalf of clients in a fiduciary capacity. Where there is a patriarch of a Middle Eastern family, who struggles to relinquish control, “it usually requires a lot of discussion”, says Sandra Louw; factors such as the range and location of wealth and where family members are based are all important issues, as are cultural sensitivities and family dynamics.

External reputational management is also important for families wanting to invest with other family offices. Issues such as correct tax management and sustainable investments play a key role in maintaining that reputation. Although Middle Eastern families really value their privacy and confidentiality, there is also a “growing awareness of economic substance”, after a decade of transparency initiatives.

But despite assumptions of a male-dominated market in the Middle East, Sandra says “the landscape is changing a lot”.

There is an emergence of female wealth.

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Families are more mobile, children are working or studying abroad, so wealth is being created outside the Middle East too.

It is no longer the case that the first generation controls everything. Nevertheless, “family members have to earn their right to play their part in the governance of the family structure”.

Middle Eastern clients want to follow Sharia law and expats in the Middle East do not, so “a cross-disciplinary approach” is needed, to manage clients’ expectations.

Working with specialists who understand Sharia-directed investments is important.

Samy Reeb, at 1291 in

Geneva, advises on the use of insurance policies for wealth planning. PPLI can be used as an asset holding vehicle or a high net benefit policy can be used to provide additional liquidity. Such policies can be taken out in accordance with Sharia principles of purity and certainty.

Life insurance can also be used to address estate equalisation, whereby a lifetime gift can be settled into a trust and the trust proceeds used to take out a high net benefit policy – “a powerful tool, if done right”.

Saudi is a country in the middle of massive change, says Nick Sloane of SP Hinduja Banque Privée. Women have more freedoms and are coming back into the workforce; the population is increasingly aware of social media and there is a massive push towards education and self-sufficiency in sectors other than oil.

Sovereign wealth funds play a big part in providing local investment, and as such funds become more sophisticated, the ratio of diversified revenues versus oil revenue is decreasing. VAT has also been introduced in some Middle East countries, and income tax will no doubt follow.

Overall, family structures need to be “better structured and better organised”.

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MIDDLE EAST PANELS IN SWITZERL AND

Middle East Panels in Switzerland pose and 80% of the equity market has an overlap with ESG investments and Islamic finance.

GENEVA PANEL

Islamic finance is a prevalent topic amongst Middle Eastern clients. Marc Gaechter, at Lombard Odier, says Islamic finance is “driven by purpose” much more than simply a return on investment. It integrates the ethics and morals of Sharia law. Three such principles are ‘riba’, a prohibition on interest rates, meaning no investment in traditional markets, no gambling or speculation, meaning no speculative investment and a restriction on alcohol, tobacco, weapons and other prohibited activities prevents any related investment. In this way, Islamic finance is similar to sustainable investing which is also driven by pur-

Two investments that comply with Sharia law are ‘sukuk’, which are Sharia-compliant fixed-income investments and Islamic equities, which are less restrictive than sukuk and for which company activity shouldn’t be in excess of 5% of revenue generated by non-halal sectors, and financial ratios of cash, debt and interest-bearing securities should be adhered to. Despite these restrictions, there are still 3000 Dow Jones Islamic Index companies around the world which comply.

Marios Rafail, at Henley &

Partners, says that post covid, clients “are thinking more about relocation”. Therefore, governments are keen to restructure their citizenship and residency programmes to attract top talent and foreign investment, especially since countries are now facing

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MIDDLE EAST PANELS IN SWITZERL AND

fiscal deficits due to the pandemic. The UAE has established a lot of visa-free treaties globally in the last ten years allowing clients more mobility and freedom.

ern clients to diversify assets abroad without excessive government scrutiny. France is very popular for real estate as is Portugal and Spain. JAR helps structure a property purchase using an asset-holding company, the shares against which financing is taken out. Sharia law “is not so important when buying offshore”, says Laurent, and therefore clients are able to take advantage of low interest rates on loans.

Middle Eastern clients tend to want to come to Europe, to live in a tax-friendly jurisdiction through such programmes, where they can educate their children and carry out effective family and estate planning. Malta and Montenegro are two popular jurisdictions for clients participating At Core Service SA, Mejid in the citizenship investment programme Manai deals with a lot of and Portugal is the most popular for those Inheritance and family govon the residence investment programme. ernance issues. During lifetime, a Muslim The UK is also very popular through the can freely give away his assets. It is only innovator or investor visa route. on death that there are strict conditions in place on how a Muslim’s estate is to be Laurent Mazens, at JAR, divided. Some Middle Eastern countries says that buying real estate is apply the rules of the Qur’an directly and one way for his Middle East- others have their own inheritance legislation incorporating the principles of the Qur’an within it.

The general principle of private international law is that when a person dies, the laws of the country in which they are domiciled are applied to their moveable

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MIDDLE EAST PANELS

assets; non-moveable assets are governed by the lex situs: where situated. Therefore, if property is not in a Sharia-governed country, Sharia law will not apply.

If there are no wealth plans in place, three principles for Middle Eastern clients will apply: a non-Muslim cannot inherit from a Muslim; a woman inherits a half share while a man inherits a whole share; fixed heirs are prescribed in Sharia law and the residuary heir, who is the nearest male going up the line of succession, receives the remainder of the estate.

A will is possible under Sharia law but only one third of an estate can be given away freely and only to non-heirs.

Therefore, the most effective succession planning for Sharia-governed clients is a lifetime gift into a trust. More than 40%

of Mejid’s work involves setting up trust structures using a private trust company, held by a purpose trust, such as a foundation, to enable confidentiality. Enforcers and protectors often play an important part in these structures. The succession plans are contained in the purpose trust deed. Family members can be on the board of the PTC allowing them to retain some control. Using this type of structure allows Middle Eastern families to plan ahead.

SPECIAL THANKS TO ALL OUT GUEST SPEAKERS AND FOR THOSE THAT ATTENDED OUR LIVE EVENTS IN ZURICH AND GENEVA. SEE YOU SOON.

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REPLAY>>>> David bell recently interviewed Liz Bottomley and Mansoor Mohi-uddin from Bank of Singapore

ch t a w e r e Click h -uddin

i h o M r o o Mans ist nom

Chief Eco

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QUIZ

Quiz

Last Month’s Answers: Cryptic Cartoon ~ Dreydel (Dre-dull)

Wordwheel ~ Pachyderms

Admissable Anagram ~ Frontier Markets

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MEEEETT O OU UTR M MEEM MBBEERRSS• •M

Meet our Members: Alan Kitcher What do you love most about your role?

There are two things that really stand out to me. The first is the sheer variety of my role. I really enjoy speaking to and helping a wide range of people. The second is the long-lasting relationships I am able to build with clients.

How has your business adapted in light of COVID-19?

What do you do for Thomson Snell & Passmore?

I joined the firm during the pandemic and was immediately impressed with how they had pivoted to working from home so seamlessly. Being inducted virtually was a first for me, but the experience was really positive and that is testament to the firm’s supportive and progressive culture. The feedback from clients has also been good and again I think this is in large part due to the culture but also our use of innovative technology.

As Head of Trust Management, I advise trustees and executors, as well as beneficiaries of trusts and estates. I have particular expertise in working with high net worth and ultra-high net worth individuals, families and their businesses, as well as charities and charitable foundations.

What has been your greatest achievement? Personal or professional.

I am a qualified chartered accountant, and as part of my role advise clients on From a professional point of view... their personal tax liabilities, including their exposure to inheritance tax and To read in full click here capital gains tax.

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MEEEETT O OU UTR M MEEM MBBEERRSS• •M

Meet our Members: Sean Coughlan and become more experienced and successful in their careers.

What has been your greatest achievement?

My biggest achievement as MD is to manage a business which has doubled in size over five years whilst still keeping control of it. Rapid growth is fantastic and everybody in the office gets excited by the success, but we have also invested in systems and operations to make sure that the growth can continue in a structured way.

What do you do for Trident Trust?

I joined Trident Trust in 2016 as Managing Director of our Singapore office.

I have overall responsibility for the dayto-day operations of our Singapore office, managing key client relationships and seeking opportunities to develop our business further.

What do you love most about your role?

How has your business adapted in light of COVID-19?

Having in place strong foundations paid off last year and no significant change to our business model was necessary; we only put in even more effort to stay connected whilst working from home and to provide a seamless customer experience to our clients during the pandemic.

I love that, as MD, I get to be involved in almost every aspect of the business, Against the common trend of downsizand at the same time I’m in charge of ing on office space as people... our big picture goals. Our business is growing rapidly and it’s a real pleasure To read in full click here to see our staff grow with the business

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pcd members can Contribute to future editions of our digital magazine in 2022

April September December Contact: magazine@pcd.club

Hear From Our Members Family Legacies beyond Finances & Legalities

By Zita Nikoletta Verbényi

The Future of Family Offices in Asia: the Rise of Governance

By Sean Coughlan, Managing Director at Trident Trust Sancus Continues Expansion in the UK

Ince launches integrated private wealth offering

The New Cryptocurrency Tax Bill: If it ain’t broker, don’t fix it!

By James Debate, US Tax FS

Thomson Snell & Passmore appoints Alan Kitcher as Head of Trust Management

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DINNER DESTINATIONS

FOR 2022 LONDON - 24 MARCH GENEVA - 17 MAY JERSEY - 14 JUNE LONDON - 16 JUNE ISLE OF MAN - 21 JUNE ZURICH - 15 SEPTEMBER GUERNSEY - 29 SEPTEMBER MANCHESTER - 12 OCTOBER MIAMI - 20 OCTOBER DUBAI - 3 NOVEMBER SINGAPORE - 15 NOVEMBER LONDON - 24 NOVEMBER

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