A 'quantum leap' in private wealth

The introduction of the OECD's Common Reporting Standard (CRS) which comes into play in the UK from 1 January 2016, shouldn't be as big a challenge for Jersey firms as it might be for those in other jurisdictions, given the time and energy Jersey has invested into positioning itself right at the cutting edge of information exchange.

Pascal Saint-Amans, director of the OECD Center for Tax Policy and Administration, and keynote speaker at Jersey Finance's Annual London Private Client Conference this year, referenced the 'tremendous job Jersey has done contributing to the international tax agenda'; a fantastic, genuine and deserved endorsement of the work so far in the tax and regulation space.

Throughout the conference, which was attended by more than 400 private client accountants, lawyers and wealth advisers, the speakers and panellists spoke about the reporting and information exchange frameworks now in place, including the OECD's CRS, but also extending to FATCA and, as far as the Channel Islands are concerned, the intergovernmental agreement with the UK, and the great progress jurisdictions have made in adapting and complying to the changing landscape.

Jurisdictions like Jersey have continued to provide a compliant framework of effective information exchange. Firms must ensure that they have the ability, expertise and technology to make sure this framework works in practice.

The automatic exchange of information, confidentiality and data security all come into greater focus as the framework becomes more complex, as does the challenge of achieving a global level playing field on tax cooperation.

It is certainly Jersey's view that committing to the highest international standards gives it a competitive advantage, and in doing so, it is playing its part in encouraging other jurisdictions to do the same.

As we move rapidly forward towards a new era of tax transparency and compliant confidentiality, having the right jurisdictional infrastructure in place will be vital, but so will having the experience, knowledge and platforms at industry level.

The introduction of the CRS could be seen as a 'quantum leap' for firms in the wealth management space, however in all respects, Jersey is in a good position to offer the private client community the certainty it needs in a changing regulatory environment.

Geoff Cook is the CEO of Jersey Finance

He writes a regular blog about Jersey for Private Client Adviser