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Program Brings Young Entrepreneurs To The UK

European Tax & Money Havens,

Nineteen young entrepreneurs from 13 countries have become the first batch of applicants to come to the UK to set up businesses as part of the Government’s new Sirius Programme.

The scheme, which is run by UK Trade & Investment, recognizes graduates with innovative start-up ideas,

London Big Benand aims to attract hundreds of talented entrepreneurs into the UK in its first two years. Successful teams receive start-up support including a 12 month place on one of the best business accelerator programmes; mentoring; help gaining clients; financial support of GBP12,000 per team member; and a visa endorsement. Enterprises remain completely owned by the graduate teams, and no equity is taken.

The first round of the scheme attracted 160 applicants. Winners came from countries including Canada, China, Germany, India, Italy, Kenya, New Zealand, and Nigeria, and they will launch businesses in the sport, energy and health technology sectors. Winning ideas included green energy from waste coffee ground; a low-cost smartphone battery charging solution; and a device for enabling consumers to instantly verify whether a branded product is counterfeit via their mobile phone.

Big Ben, London. Picture courtesy of Doco, Wiki Commons.

The Government believes that the scheme will create new jobs, promote foreign investment and have “a significant cumulative impact” on the economy. It adds that businesses based in the UK have access to 500m customers across Europe, and that these customers tend to be “early adopters” of innovative technology.

Minister of State for Trade and Investment Lord Livingston said that the UK “is fast becoming the country of choice for talented graduates to start and grow their businesses.”

The Sirius Programme is open for entries in January 2014.

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Hong Kong Promoted As Intellectual Property Trading Hub

Far East Tax & Money Havens, , , , , ,

The Government has formulated an overall strategic framework for promoting Hong Kong as a premier intellectual property (IP) trading hub in the region.

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As determined by a working group, which conducted many rounds of stakeholder consultation over the past few months, Hong Kong’s overall strategy on IP trading encompasses four strategic areas – “namely, enhancing its IP protection regime; supporting IP creation and exploitation; fostering IP intermediary services and manpower capacity; and pursuing promotion, education and external collaboration efforts.”

Courtesy of  Paramount Pictures, Wiki Commons.

The working group will, in 2014, explore specific policies and other support measures under each strategic area for promoting Hong Kong as a regional IP trading hub. In the meantime, two sub-groups formed under the working group will continue to deliberate on ways to spearhead further developments in certain specific areas, focusing particularly on the more specialized subjects of IP valuation, and IP arbitration and mediation.

Some of the initiatives under way and in the pipeline include the setting up of the Original Grant Patent system as a strategic step to help Hong Kong develop as an innovation and technology hub; a review of copyright to strike a balance between its protection and the freedom of expression; and the launch by the Hong Kong Trade Development Council of an online IP trading portal in January 2014 to enhance Hong Kong’s online IP trading volume, capabilities and connections.

A survey on IP trading and manpower in Hong Kong will also be conducted in 2014 to provide statistical and other relevant information to support the working group’s further deliberations.

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Hong Kong Reviews Its Trust Reforms

Far East Tax & Money Havens, ,

In his speech at the recent Hong Kong Trustees’ Association Conference 2013, the Secretary for Financial Services and the Treasury, Professor K C Chan, confirmed that the Government is keen to promote Hong Kong as a global center for trust services.

Hong Kong Skyline

Chan called the trust industry “an indispensable pillar that cements our standing as a premier international asset management center.” It offers a diverse range of services and products, including individual wealth and estate planning, as well as corporate trust services, such as trust administration and acting as a custodian. In addition, financial structures and products have been developed that utilize trusts, such as pension funds, real estate investment trusts and hedge funds.

Hong Kong Skyline courtesy of Wiki Commons user Robster1983.

He cited the many advantages that have set Hong Kong apart as a premier trust administration center. In particular, its proximity to the Mainland means the industry can offer its services to ultra-high-net-worth Chinese individuals who are seeking ways to manage their assets, as well as looking to preserve wealth and family businesses for passing on to future generations.

Chan noted that it is the Government’s goal to develop Hong Kong “as the most competitive and dynamic wealth management business center in Asia,” and that, with the setting up of the Private Wealth Management Association in September this year, “it is of vital importance that our regulations are up to date in order to take on new opportunities.”

The Government launched a trust law reform exercise in 2008, which sought to modernize the Trustee Ordinance and the Perpetuities and Accumulations Ordinance, the two main pieces of legislation in Hong Kong’s trust law regime. The exercise was brought to completion with the passage of the Trust Law (Amendment) Ordinance 2013 in July 2013.

The Amendment Ordinance, which, he said, “will put Hong Kong’s trust law on par with those of other major comparable common law jurisdictions,” will come into effect on December 1 this year. Amongst other benefits, it will enhance trustees’ default powers and introduce a host of measures that can better protect beneficiaries.

In the Government’s opinion, it should itself attract trusts to be set up in Hong Kong. In particular, through the abolition of the Rule against Perpetuities, settlors will be able to set up perpetual trusts in Hong Kong (which is still not possible in most major common law jurisdictions), and, through the introduction of the anti-forced heirship rule, settlors will not need to worry that the assets in the trusts would be clawed back by their heirs against their wishes in the future.

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Jersey Amends Trust Legislation

European Tax & Money Havens, , ,

The latest amendment to Jersey’s trust legislation came into force on 2013, October 25, strengthening the territory’s legislative framework and providing greater clarity for the courts, practitioners and those who work with or benefit through Jersey trusts.

St. Brelades Bay, Jersey

The effect of Trusts (Amendment No. 6) (Jersey) Law 2013 is to confirm the Royal Court’s ability to provide discretionary relief in a number of trust scenarios, e.g. where a settlor has made an error in settling assets into trust, or where a trustee has erred in exercising a power, perhaps failing to take into account matters which should have been considered, or acting on incorrect professional advice.

Geoff Cook, CEO, Jersey Finance, commented: “Since its enactment in 1984, the Trusts (Jersey) Law has proved to be a highly effective and hugely influential piece of legislation. This latest amendment, only the sixth in nearly 30 years, provides welcome clarity for the Royal Court and for the many settlors, trustees and beneficiaries, all over the world, who enjoy the benefits of having Jersey law as the governing law of their trusts.

St. Brelades Bay, Jersey, image courtesy of Julia Raco, Wiki Commons

The ability for the Royal Court to give discretionary relief when a beneficiary finds itself materially prejudiced by a trustee’s decision – made, perhaps, in good faith but unfortunately founded upon erroneous advice – provides a welcome alternative to the uncertainties and costs which surround ‘classic negligence litigation’.

“With an estimated GBP 400bn (USD 647bn) of trust assets under administration in Jersey, this amendment can only serve to further bolster Jersey’s already highly regarded international private wealth offering.”

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