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!

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

Global Challenges and Pitfalls for Wealth Planners (13 Oct 2009, 5-7pm, STI Auditorium – Capital Tower)

In this Seminar, Simon Phelps will deal with the following topics:

Register early to secure your place by completing and faxing the registration form to 63299699 or via e-mail by 6 October 2009!

With the recent introduction of the draft Income Tax (Amendment) (Exchange of Information) Bill for public consultation, Singapore has intimated its commitment to endorsing OECD standards for the effective exchange of information after many years of indifference to calls to do so. The objective of the Seminar presented by Mr. Gurbachan Singh was to address some of the questions on the minds of tax and trust practitioners that arise from the change in Singapore’s policy.

One will find that the reason behind OECD’s clamouring for effective exchange of information may be attributed to the make-up of the organization which consists primarily of developed countries that are typically high on the outflow but low on the inflow of funds. In this author’s opinion, the make-up of the OECD members renders its justifications for the exchange of information on the basis of tax harmonisation and the concept of a level playing field somewhat suspect.

Nevertheless, the change is here to stay and needless to say, the examination of the Bill was a highlight of the Seminar. But since the Bill is still a draft, some of the discussions and comments made were purely academic. It still remains to be seen how the implementation of the proposed Bill will play out in reality, and this we await with much bated breath.

The international private client team at Withers comprising Ms Samantha Bradley, Mr. Todd Angkatavanich, Mr. Paul Behling – Partner, Ms Mimi Hutton – Partner, Withers Hong Kong office and Mr. Joseph Field presented a very well-received talk on worldwide developments in the financial, tax and disclosure landscape requiring enhanced transparency and potential disclosure of financial accounts and structures, with particular emphasis on the effect these trends will have on private clients with contact or investments in the US and UK, and how they can structure and react to the changes. Topics discussed included the build up to the G-20 summit, the OECD 2 April progress report on implementing internationally-agreed tax standards, the recently proposed US Stop Tax Haven Abuse Act, proposed changes to the US ‘qualified intermediary’ rules and increased HMRC powers in the UK. Almost 70 members of the industry attended this talk chaired by STEP (Singapore) Secretary, Mr Gurbachan Singh.