Highlights of STEP Symposium in Singapore held on 22 June 2010: Singapore Private Wealth Management Update 2010

Summary
The one-day Singapore Private Wealth Management Update held on 22 June 2010 was well supported by STEP members with 158 paying attendees plus guests (STEP members paid $250 each). It was an inaugural event in that it had a purely educational focus with no commercial sponsorship. Compared with the October 2009 STEP Conference in Singapore (350 attendees), which examined overarching and global issues, the symposium focused on the benefits, tips and traps of Singapore as a jurisdiction of substance for PWM.

The keynote speaker was Mr. Michael Hwang SC, President of the Law Society of Singapore and Chief Justice of the Dubai International Financial Centre's (DIFC) Court. He was followed by seven sessions covering a range of topics relevant to trust practitioners in Singapore.

Feedback from attendees was very positive: 80% rated the overall event good or excellent, and 77% rated the event good-to-excellent value for money. Many positive comments were received including “This is definitely one of the best STEP seminars I have attended,” and “Excellent, exceeded my expectations.”

More such events are being planned for the second half of this year. They include a seminar on tax and trust for Israelis, inward and outward investing in India, financial services in the Bahamas and the legitimacy of tax planning for TEPs.

Symposium Topics

• Welcome Address by Symposium Chairman Angelo Venardos, President STEP Singapore.
• Keynote Address: “Why Does Singapore Not Have A Variation Of Trusts Act?” by Michael Hwang SC, President of The Law Society of Singapore.
• Session 1: “Singapore - The Approach to Trust Services - ‘A Recipe for Continued Success?’” by Bill Lexmond, Managing Director, UBS AG, Singapore.
• Session 2: “Wealth Protection and Preservation for Entrepreneurs in Asia Pacific” by Mark Smallwood, Managing Director, Deutsche Bank AG, Singapore.
• Session 3: “Trends in Trust” by Gurbachan Singh, Partner, KhattarWong, Singapore.
• Lunchtime Presentation: “STEP, Compliant confidentiality and the Trusted Adviser” by David Harvey CEO, STEP UK.
• Session 4: “A Commentary on Singapore’s Mental Capacity Act and Acting as Donee in the Lasting Power Of Attorney” by Lee Chiwi, CEO, Rockwills Group, Singapore.
• Session 5: “Gaining and Losing Tax Residency – The UK, Singapore and Hong Kong” by Yeoh Lian Chuan, Consultant, Allen & Overy LLP, Singapore.
• Session 6: “A General Update on the Appointment and Retirement of Trustees” by Richard Grasby, Senior Associate, Maples and Calder, Hong Kong.
• Session 7: Panel Discussion on “Why Singapore for Global Wealth Protection & Preservation?” The panel was chaired by Angelo Venardos and included James Aitken (Managing Director, HSBC Trustee Limited, Singapore), Stacy Choong (Partner, Rajah & Tann LLP, Singapore), Hugh Ellerton (Managing Director, EFG Trust Company Ltd, Singapore), Nicholas Watt (Director, Standard Chartered Private Bank, Singapore).

View Photos Taken at the Symposium Here.

2010-2011 Committee

We are pleased to announce STEP Committee 2010-2011 as confirmed at the AGM on 22 June 2010:

President – Angelo Venardos
Vice President – Alex van der Zwaard
Treasurer – Goh Seow Chee
Secretary – Alexis Medina
Committee Member – James Aitken
Committee Member – Luke Peng
Committee Member – Lim Wan Peng

STEP AGM – Nominations for election to Committee 2010/2011

Dear Members,

At the close of the time to receive nominations for election to the committee for the year 2010/2011, the following nominations for election for the post of office bearers and members for the committee were received (listed in alphabetical order):-

Gurbachan Singh
Secretary, STEP (Singapore Chapter)
Updated as at 21 June 2010

Notice of STEP AGM 2010 (22 June 2010, 6.00pm, M Hotel)

Gurbachan Singh
Secretary
Society of Trust & Estate Practitioners (Singapore Chapter)

Post Event Update: Residence and Citizenship Planning – An Overview for TEPs (13 May 2010, 12-2.15pm, Marina Bay Room, ERCI City Campus)

More than fifty STEP Members and Guests attended the 13 May 2010 STEP seminar on “Residence and Citizenship Planning – An Overview For TEPs” delivered by Mr Christian H. Kalin (“Chris”), Partner, Henley & Partners of Zurch, Switzerland.

Chris’ presentation identified and reviewed key factors which influence the decision of wealthy individuals and families to seek relocation from one country to another, such as, desire to achieve enhanced tax planning, personal safety, education opportunities for children, change in life style, political and economic stability and even pleasant weather and cultural environment.

Primary countries identified and reviewed during the presentation included Switzerland, Belgium, Austria, St Kits & Nevis in Caribbean and Singapore. With respect to each identified country Chris reviewed: residency requirements, tax reporting obligations, requirements to obtain citizenship, lifestyle advantages, and business environment.

As an aside, Chris spoke about the many advantages associated with holding more than one passport and reliance on residency documentation to facilitate travel between designated countries in Europe.

With respect to Singapore, Chris led a very interesting discussion on the excellent positioning of Singapore as an ideal jurisdiction for tax compliant individuals to “drop off assets” before immigrating from one high tax jurisdiction to another high tax jurisdiction. In light of favourable and tax neutral treatment of foreign owned financial assets managed in Singapore wealthy individuals and families need not immigrate to Singapore in order to take advantage of its world-class wealth management industry.

The session ended with review of a sample pre-immigration process management framework inclusive of a proposed pre-immigration advisory process. Also presented were suggestions for scope of pre-immigration and personal financial planning practice areas. Chris highlighted the importance of integrating into immigration planning focus on “residency exit or termination planning”, impact of change of residency or immigration on spousal rights and marital property, change of domicile, review of decedent’s estate administration, confirmation of estate and inheritance planning, and review of possible consequences for families which own or control an active business in a third country.

Post Event Update: What Singapore TEPs Should Know about Wealth Structuring for Clients Resident in Russia (20 April 2010, 12-2pm, FTSE Room – Capital Tower)

This presentation by Dr Britta Pfister of Rothschild reviewed current developments within the Russian Federation & CIS where in addition to the great wealth being created since the opening-up of the economy, changes in the Russian tax environment & renegotiations of tax treaties concluded by Russia, are also driving the local wealth management industry.

Protocols have been signed recently with Cyprus, Luxembourg and Switzerland.

The main focus of such Protocols is on:

The talk covered a number of very interesting case studies relevant to Russian BO’s, and challenges for wealth planners who need to be aware of local idiosyncrasies & regulatory matters.

Some 48 attendees engaged the presenters during the Q&A seesion.confirming the view that Singapore has a role to play in developing this emerging market.

Post Event Update: Networking Night Featuring a Talk on “Labuan IBFC as Part of A Family Wealth Management Solution” (12 April 2010, 6-8pm, Shenton Room – M Hotel)

35 participants attended the networking event cum presentation titled "Labuan IBFC as Part of A Family Wealth Management Solution", eager to understand the offering on the latest Labuan Trust and Foundation laws.

Labuan IBFC's new CEO, David Kinloch, gave an overview of Labuan's initiatives and the general developments in the jurisdiction. Next, Mark Lea - Partner, Lea & White and a familiar speaker to many members, gave a succinct account of the new amendments to the trust and foundation laws.

These developments included the Labuan Special Trust ("LST"). LST is very similar to the VISTA trust offered in the British Virgin Islands. Other features include the introduction of purpose trusts. The purposes can be charitable or not. For charitable trusts, the purposes to be treated as charitable are quite wide. The terms of a Labuan trust may provide for the appointment of a protector. Following Mark Lea's presentation, there was a time for Q & A for the panel and we were fortunate to also have Labuan IBFC's tax expert Mike Grover on hand to discuss the use of Labuan structures for cross border tax planning and also how Malaysians and foreigners could use them for outbound and inbound investments out of and into Malaysia.

Singapore Private Wealth Management Update 2010

Following on from the great success that we had in hosting the STEP Asia Conference last October, STEP Singapore invites you to join us for our inaugural STEP Singapore Symposium.

At this full day event, you will hear from leading local trust & estate practitioners on a full range of topics pertinent to the Singapore trust industry. Plus, take part in an afternoon panel session that discusses Singapore’s value proposition as a wealth protection and preservation jurisdiction. This year, our Keynote Speaker will be Mr. Michael Hwang, the President of the Law Society of Singapore.

We are keeping the registration fees for members and industry practitioners at an affordable level, so that as many as possible can attend.

Please mark this date in your diaries. We look forward to welcoming you to the Symposium and are certain you would benefit from this learning and networking opportunity!

Angelo Venardos & Alex van der Zwaard
Symposium Organising Committee

STEP Singapore is pleased to invite you to its upcoming networking night which will feature a talk on “Labuan IBFC as Part of Family Wealth Management Solution”. This will be followed by a standing cocktail with canapés as well as free flow of soft drinks, beer and wine.

STEP Members are invited to attend free-of-charge thanks to the generous co-sponsorship of Labuan IBFC Inc. Sdn Bhd and STEP Singapore.

Register early to secure your place by completing and faxing the registration form to 63299699 or via e-mail by 5 April 2010!

The presentation will focus on the possibilities and pitfalls regarding wealth structuring solutions for clients resident in Russia. It will provide an overview of the relevant legal and tax environment and will demonstrate solutions based on two "live" cases which the speakers will elaborate upon.

Register early to secure your place by completing and faxing the registration form to 63299699 or via e-mail by 13 April 2010!

President's Message for 2010

Last year we had the GFC & H1N1, and this year, we will have to deal with such challenges as EOI, DTAs & ETC.

However, whether we accept the Chinese saying “where there is crisis, there is opportunity” or the Western saying “that the glass is half full, not half empty”, the Year of the Tiger is one for us all to grab the beast by the tail, and run with all the challenges ahead.

Fortunately, being members of a worldwide professional body of some 14,000 members spanning many jurisdictions, it’s comforting to know that the resources of STEP are available, through your Singapore Branch, to deal with trust industry related developments. As well, we can look forward to another busy year ahead, full of informative monthly events and a new initiative this year – our inaugural full day Symposium in June 2010.

On behalf of my Committee, I wish you all, your families (& bosses) Gong Xi Fa Cai!

Angelo Venardos
President, STEP Singapore Chapter

Residence and Citizenship Planning – An Overview for TEPs (13 May 2010, 12-2.15pm, STI Auditorium)

What should an ideal place of residence offer? What are the important points to consider? Such a place should probably be a tax-free or low-tax jurisdiction with clear, reliable rules. There should also ideally be no or limited reporting requirements, no forced heirship rules, and it should be easy to obtain a residence permit. Although one would of course like to stay in such a place that offers all of these benefits, it would still be useful if there were no minimal physical presence requirements.

Finally, but increasingly important for many people is the possibility to acquire citizenship in due course.

In this talk, our speaker Christian H. Kälin discusses the following issues with specific reference to the role of a TEP in orchestrating and coordinating the delivery of the services:

• Key criteria to consider
• Tax, immigration and citizenship aspects
• What are the most attractive jurisdictions for Asian clients?

The objective is for attendees to understand the value-adding process and integrator/intermediary role played by TEPs in delivering services and solutions described.

The seminar chairman, Eli Lenyoun, will also provide his insights into how the discussed framework and process may be applied locally in relation to the MAS Financial Investor Scheme (FIS) and EDB Singapore Global Investor Programme (GIP).

Register early to secure your place by completing and faxing the registration form to 63299699 or via e-mail by 6 May 2010!

Post Event Update: "Tax Treaties and Corporation Administration Update" (26 January 2010, 12-2.15pm, STI Auditorium)

More than 100 participants attended this presentation by James Quarmby from Thomas Eggar LLP, which was chaired by our Branch President Angelo Venardos.

The presentation was very effective in demonstrating the issues of CMC and POEM. The essential question raised during this presentation was “where are the fundamental decisions about the Company taken?”. It can be enough that the Directors signed the relevant resolutions outside the UK (even on advice from the UK advisors) so long as this act itself amounted to the free exercise of their discretion, and their role as Directors had not effectively been usurped by some other person. Conversely, it is not enough to provide a paper trail if all that is happening is effectively a rubber-stamping exercise.

Investment Oversight for Trustees (2 March 2010, 5-7.30pm, STI Auditorium)

There can be no doubt that the recent turmoil in global financial markets has served as a stark reminder of the importance of understanding the risks associated with investing.

For the investment manager, the focus has been on risk management and capital preservation rather than chasing returns. For the Trustee, monitoring investments and managed portfolios has probably never been more important.

Richard Sayers, Managing Director of Enhance Investments Limited, was a discretionary portfolio manager during the 2001/2002 bear market so has experience of managing client assets during challenging financial market conditions. More recently as a consultant and importantly not having direct management responsibility but guiding professional fiduciaries in relation to investment activities during 2008/2009, Richard will draw on these experiences to provide a current update and live examples.

The presentation will include:

• The evolution of the investment oversight sector
• Review of investment risks in practice
• Jurisdiction case study - Jersey
• Returns and volatility case study
• Qualitative risks case study
• The components of investment oversight
• Conclusions

Register early to secure your place by completing and faxing the registration form to 63299699 or via e-mail by 23 February 2010!

President's Message Reviewing Year 2009

Dear fellow STEP Members,

As 2009 draws to a close, what a year it has been…… we made it through the recession, we survived the H1N1 situation, and the cream on top of all of this was our hosting of the 3rd STEP Asia conference which was a tremendous success. For those who did not attend, a summary follows in this newsletter.

The newsletter is a new initiative and was introduced to improve communication with our Singapore Branch members.

I have also included a summary of the events that the Branch has conducted over the past 2 years, which I would like to take this opportunity to thank, not only, all the various past speakers & participants, but also the time taken by all the Committee Members, who as volunteers, give up a lot of their time to service our profession industry body.

A final note of thanks must also go to Ms June Tan & her team at Intellitrain who have been a big part of the success here in Singapore, by the provision of a very professional Secretariat.

Angelo Venardos
President, STEP (Singapore Chapter)

Post Event Update: "New Approaches by Families to Withstand Financial 'Crises': Strategies to Create and Maintain Generational Wealth" (19 Nov 2009, 12-2.15pm, SGX Auditorium)

On 19th November, STEP Singapore organized a lunch talk for its members at which Ms Barbara Hauser, an expert on family governance and estate planning issues, gave an informative presentation on the issues wealthy families are facing in a crisis.

Barbara shared with the audience a number of client cases that she had been involved in. It was interesting to note that despite the cultural differences between families in the East and in the West, both are facing similar if not the same issues when organizing the family affairs and succession planning.

The presentation took a good hour and was followed by an interesting and active Q&A session.

The event was chaired by Alex van der Zwaard, Vice President of STEP Singapore and was attended by almost 70 STEP members and industry practitioners.

Tax Treaties and Corporation Administration Update (26 January 2010, 12-2.15pm, STI Auditorium)

In this Seminar, James Quarmby will deal with the following issues:

• How to 'control and manage' a company properly
• Lessons from the Laerstate BV decision - a case study for company directors and administrators
• Importance of 'place of effective management' for double tax treaty purposes
• Latest OECD developments in tax treaties, including Art 7 (business profits)
• Issues for use of the Singapore treaties

Register early to secure your place by completing and faxing the registration form to 63299699 or via e-mail by 19 January 2010!

Post Event Update on Seminar on "Global Challenges and Pitfalls for Wealth Planners" (13 October 2009)

On 13th October 2009 Mr Simon Phelps, Partner, of UK firm of solicitors Berwin Leighton Paisner LLP delivered a presentation titled: “The Changing Environment For Wealth Planners in Asia”. Simon’s presentation was well received by the more than 100 guests who signed up to attend Simon’s presentation.

Simon responded to questions concerning EU Saving Directive impact on Singapore wealth management industry, movements away from traditional banking secrecy to “compliant confidentiality”, possible consequences brought about by world-wide revenue authorities seeking to collect additional revenue, and the need for wealthy individuals to take appropriate advice from qualified professionals before deciding how best to preserve and protect their offshore financial capital.

Simon was very positive on prospects for Singapore trust and estate planning industry to lead in making significant contribution to cross-border and international personal wealth protection and preservation and the development of commercial and special purpose solutions to support the rapid growth of individual, family and business wealth and assets in Asia Region. Simon stated while he felt Singapore was not insulated from or able to delay global efforts to increase tax related information disclosure, he felt Singapore was proceeding to offer both fiscal authorities and wealth planning customers best of breed alternative solutions and he was certainly willing and available to offer Berwin Leighton Paisner LLP assistance to achieve success.

This evening is the first graduation ceremony, per se, that we are organizing in Singapore for our graduates of the STEP Diploma. As a fellow graduate, having been one of the first to have undertaken the study programme back in 2001, and as President of STEP Singapore, I would like to congratulate all the graduates on this fine achievement.

Armed with this Diploma, you may now apply to become a full member of STEP, and in doing so, proudly use the letters, TEP. As a Trust & Estate Practitioner, you will become a member of an international professional body with 14,000 member’s world wide, and 388 members in Singapore.

As well, you are being recognized as trust professionals at a time, when the industry is facing a new set of challenges such as:

• Off-shore going on-shore
• Tax evasion moving to tax compliant planning
• The OECD’s imposition of EOI agreements around the world

But in taking on these challenges, where you will be required to achieve a higher level competency in keeping up with industry developments, you will have the continuing support of STEP with its CPD programme.

Therefore, on behalf of STEP Singapore, I wish you good luck with your career endeavours ahead.

Angelo Venardos
President, STEP (Singapore Chapter)

Post Event Update on Seminar on "Inaugural STEP (Singapore) Student Graduation Ceremony 2009"

[View Photo Album]

On 13th October 2009, STEP (Singapore Chapter), for the first time, recognised the graduation of 34 STEP (Singapore Chapter) student members who were recently awarded the internationally recognised STEP Diploma in International Trust Management, including 22 students who graduated with an overall distinction.

The graduation ceremony is strategically relevant in the context of the overall importance and growth of the Singapore trust industry, as represented by the fact that the Singapore trust and fiduciary services industry now numbers approximately 700 professionals and is growing rapidly to meet the needs of families worldwide seeking to benefit from the political stability, sound regulatory environment, good connectivity, and best of breed wealth protection and preservation professions based in Singapore.

In line with Singapore’s role in the international trust scene, the STEP Diploma in International Trust Management is a specialist qualification which equips graduates to contribute to the industry through an appreciation of the issues which arise in international trust and estate practice, while relating them to the local jurisdiction and offering comparisons with other major jurisdictions.

After graduation, STEP members continue to be subject to rigorous continuing professional development requirements and a STEP specific Code of Professional Conduct.

Post Event Update on Seminar on “Special Trust Structures under Cayman Islands and BVI Law” (30 September 2009)

Richard Grasby (Associate, Maples & Calder, Hong Kong) is the first full time Cayman and BVI trust lawyer in the region. The lunchtime presentation was attended by more than 60 participants. The Chairperson, Lee Chiwi showed a 2004 STEP survey which indicated that the Caymans and the BVI were jurisdictions that Singaporean trust practitioners had perceived highly as major competitors.

In his presentation, lasting about an hour, Richard was able to hold the audience’s attention with the unique trust structures offered in the Caymans and the BVI; namely the Special Trusts (Alternative Regime) Law 1997 ("STAR" trusts) and the the Virgin Islands Special Trusts Act 2003 (“VISTA” trust).

The speaker pointed out that the broader applications of the STAR trust beyond its use as purpose trusts. Other uses of STAR trusts included applications as perpetual “dynastic” trusts, philanthropy, for owning shares in a Private Trust Company, off balance sheet structures and for holding high risk assets. The reserved powers legislation in Caymans was also applicable to all trusts including STAR trusts.

The unique feature of the VISTA trust is its alienation of the usual responsibilities of the trustee when it is shareholder of an underlying company under a trust. The trustee has no fiduciary duty in respect of the assets of, or the conduct of the affairs of, the company, except when acting or required to act, on an intervention call. This minimal requirement makes it popular in family business situations and when dealing with risky assets. Where the trust is combined with reserved powers, it can effectively deal with running of a business after the death of the settlor.

New Approaches by Families to Withstand Financial 'Crises': Strategies to Create and Maintain Generational Wealth (19 Nov 2009, 12-2.15pm, SGX Auditorium)

In this Seminar, Barbara Hauser will deal with the following issues:

Due to the relevance and importance of the subject matter, STEP (Singapore) welcomes STEP Members to bring their private bankers and client families to attend as their guests at a preferential rate of S$60 only, so they may also benefit from this learning opportunity.

Register early to secure your place by completing and faxing the registration form to 63299699 or via e-mail by 12 November 2009!

STEP (Singapore) President's Message: Feasibility Study for STEP in India

Dear STEP colleagues,

The Development Committee of STEP Worldwide has decided to conduct a feasibility study to consider how and whether STEP might develop in India. The study is intended to be taken to STEP Worldwide Council that meets in London in 20/21 November.

The Committee is looking to assemble a working party of perhaps a dozen senior members or associates of STEP who will have direct knowledge of Indian markets and hopefully local networks involving Indian professionals. The working party will operate through conference call meetings and at least one face to face meeting - at the STEP Branch Chair’s Assembly - and will be tasked with producing a report which considers:

• What niche STEP might have in the marketplace in India?
• What demand might there be for STEP membership?
• Which individuals, networks and professional bodies should be approached to assess the possible way forward?
• Options for a project plan

I would welcome suggestions from members or of a wider contact group. You may contact me c/o the STEP (Singapore) Secretariat.

Thank you for your assistance.

Angelo Venardos TEP
President, STEP (Singapore Chapter)
16 September 2009