London Seminar Examines OECD/Offshore State Of Play

by Amanda Banks, Tax-News.com, London

19 September 2005

The Society of Trust and Estate Practitioners (STEP) is hosting a high-level symposium in London today and tomorrow September to examine prospects for future co-operation between international financial centres (IFCs) and OECD member states.

The symposium, “Beyond The Level Playing Field?”, which is also supported by the International Trust Companies Association, brings together key thinkers from the private and public sectors in all the major IFCs, including Jersey, Guernsey, the British Virgin Islands, Bahamas, Barbados, the Cayman Islands and the Isle of Man.

Richard Hay co-chairman of STEP’s International Committee, said: “This is the first time that leading public and private sector players from so many major jurisdictions have come together to debate these fundamental issues.”

“While confrontation with the OECD is dangerous, capitulation may be worse. The symposium will examine a third option of working jointly with OECD member states in advance of a level playing field, so as to remove discriminatory measures and lower the tax and regulatory barriers to free trade in international financial services”.

Since 1998, the OECD has been running an international initiative on tax information exchange. This has generally been viewed as arbitrary and unfair by focusing on IFCs in small states while permitting OECD financial centres like Switzerland, Luxembourg and Delaware (USA), as well as key non-OECD jurisdictions like Hong Kong and Singapore, to operate without adhering to the evolving regulatory standards.

Numerous IFCs committed in 2002 to provide transparency and exchange of information on the basis of a “level playing field” embracing OECD member states and key non-OECD jurisdictions. Until a level playing field is achieved, the OECD’s project is stalled.

Progress on establishing a level playing field is to be reviewed at a milestone meeting of the OECD’s Global Forum in Melbourne, Australia this November. The STEP symposium will consider whether, in the continuing absence of a level playing field, IFCs should reject further cooperation, capitulate or find a constructive third way forward.

The Society of Trust and Estate Practitioners (STEP) is a professional body providing education, training, representation and networking for over 11,000 members working in financial services in some 60 large and small jurisdictions across the world. Members specialise in trusts and estates, executorship, will writing, administration and related taxes.

STEP believes in removing trade barriers, particularly arbitrary ones, and in ensuring a level playing field for trade in financial services. Through conferences, high-level discussions and occasional papers, STEP takes an active role in fostering international thinking about the regulation of cross-border financial services.

The International Trust Companies Association (ITCA), which is co-sponsoring the symposium with STEP, represents most of the major banking institutions providing trust services in the global finance industry.

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