This is the second time in 2024 where the island regulator has flagged breaches, as on 23 January it said “a vulnerability was detected in our Registry system” as reported on Investment International.

In a statement on 12 July, the JFSC said data had been available from 21-24 June as a result of an issue that occurred “during registry system maintenance”.

On 24 June 2024 it was “alerted to an issue which inadvertently occurred during registry system maintenance. This resulted in information on the 2021 Transition and Annual Confirmation form, some of which was non-public information, becoming publicly accessible from 21 to 24 June, affecting 261 people.

“As soon as we became aware of this issue, we acted immediately and remedied the situation on the same day. We are engaged with the Jersey Office of the Information Commissioner.”

The regulator further said: “Trust and confidence in the security and confidentiality of our registry system is a critical priority.

“We are sorry this issue occurred and have undertaken a thorough review to pinpoint the exact cause to ensure this does not happen again. We understand the importance of this situation and are committed to communicating in an open and transparent manner.

“We have written to those individuals affected and notified the relevant Trust Company Businesses.”

To create this, it has appointed Kevin Speake as head of advice. Speake will report to Tim Childe, chief executive of Quilter Cheviot International.

Speake joins the team from UK-based Quilter Private Client Advisers, part of Quilter Cheviot, where he was regional director for London and the south west.

His appointment will be followed by a number of financial planner hires as the Jersey office grows its client-facing team on the island.

This news comes after Quilter Cheviot Europe established a financial planning operation out of its Dublin office to serve European clients in 2022 and the UK national advice business Quilter Private Client Advisers became part of Quilter Cheviot in 2021.

Growth plans

The introduction of financial planning capabilities into Quilter Cheviot’s Jersey office ensures it can offer international clients a wealth management offering comprising of both financial planning and investment management.

It also now means Quilter Cheviot will be able to give a “consistent offering” to higher-net-worth clients across the UK, Europe and internationally, while being able to “accommodate the specific circumstances of the countries the client resides in”, the firm said.

Childe, chief executive of Quilter Cheviot International, said: “It is our ambition to become the leading multi-channel discretionary wealth manager in the UK, Jersey, Ireland and Dubai and the introduction of financial planning capabilities to our Jersey office is the next step in achieving this.

“As one of Jersey’s largest wealth management firms, we are always looking to invest in individuals that can deliver expert discretionary wealth management with a personal approach and plan to appoint quality financial planners to support our growth strategy.

“Along with the future financial planner hires, Kevin will bring his extensive experience and talent from the UK to build out the team and give the Jersey office the opportunity to offer a best-in-class service for international clients with a variety of needs and circumstances.”

Two of the appeals were brought by HM attorney general Mark Temple KC against judgments of the Jersey Court of Appeal. The third appeal was brought by Robert Tantular and his family members against a judgment of the Jersey Court of Appeal.

Temple won all three appeals. The hearing took place in London in February this year. Tantular was convicted of fraud and money laundering.

The case began in 2013 when Tantular was the president director of two companies that owned shares in Indonesian bank Bank Century. He was convicted of fraud and money laundering offences in Indonesia, which were upheld by the Indonesian Supreme Court, following the collapse of Bank Century. In 2004, Tantular had created the Jasmine trust by settling assets on its trustee in Jersey.

In 2005, a holding company of the trust had bought an apartment in Singapore for S$7.1m (£4.22m, $5.28m, €4.91m). Tantular’s wife and children lived in the apartment. It was mortgaged to Credit Suisse for around S$4.4m when the first freezing order was applied for and granted by the Royal Court in 2013. A second freezing order was granted by the Royal Court in 2014.

The three appeals

The first appeal, brought by the Tantular beneficiaries of the trust related to whether freezing orders could be made in relation to property based outside Jersey. The Tantular beneficiaries argued that the Jersey Court did not have jurisdiction to do so. The privy council board agreed with the judgment of the Court of Appeal on this point, and with the judgment of the Royal Court.

The second appeal, brought by Temple concerned whether the Court of Appeal was right to grant a declaration that Credit Suisse as the holder of the mortgage over the apartment in Singapore was entitled to assign its rights under that mortgage to a third party.

In 2018, Credit Suisse had been granted a variation to the freezing orders to allow it to sell the apartment in Singapore. Members of Tantular’s family had then applied for a declaration that the freezing orders did not prevent Credit Suisse from assigning its rights under the mortgage to a third party.

STEP said that the family also proposed that the rights be assigned to an old family friend in Indonesia who would pay off the debt to Credit Suisse, and would be more flexible about repayment of the loan, allowing them to stay in the apartment. The Royal Court had refused to grant the declaration, but following an appeal by the Tantulars, the Court of Appeal had granted it.

The privy council board disagreed with the decision of the Court of Appeal on the grounds that the proposed assignment to the old family friend could have aided or abetted a breach of the freezing order and would have permitted a transfer that interfered with the administration of justice. The board found that the differences between Credit Suisse, as a regulated global financial institution acting at arm’s length to the Tantulars, and the old family friend who was an unregulated individual “could not be more clear cut”.

Temple also brought the third appeal, on the grounds that a costs order made by the Court of Appeal was contrary to the regime for providing effective mutual legal assistance to foreign states. The board held that the Court of Appeal fell into error in making the costs order. Temple has now begun to negotiate an asset share agreement with Indonesia. The net assets available are £1.325m ring-fenced in the Criminal Offences Confiscation Fund.

Temple said: “The judgment of the board of the Judicial Committee of the Privy Council is significant and helpful in clarifying important aspects of Jersey’s financial crime legislation.

“It provides confirmation at the highest appellate level concerning the Jersey courts’ jurisdiction to freeze and confiscate the proceeds of crime in an effective way where the Attorney General receives requests for assistance from foreign governments. While the case has taken 10 years to reach a conclusion, it shows the extent of the Law Officers’ Department’s commitment to defending Jersey’s reputation for tackling international financial crime.”

Post-completion, these two acquisitions will take Team’s assets under management and advice to over £850m.

Thornton and Globaleye represent the Jersey-based firm’s fifth and sixth acquisitions in the last three years.

Globaleye

In the first deal, Team has acquired the entire issued share capital of Globaleye BVI, the parent company of the Globaleye Wealth Management Group.

Globaleye is an international wealth management business with offices in Dubai, Abu Dhabi, Singapore, South Africa, and Malaysia. It has total client assets under advice of £242m.

Founded in 1996 by chairman Tim Searle, Globaleye specialises in wealth management, insurance broking and complementary financial services, providing advice to affluent, high and ultra-high net worth private individuals, trustees, corporates and business owners.

Team said that the deal is a good opportunity for the firm to enter the UAE and Singapore wealth markets, which continue to grow rapidly.

The acquisition of Globaleye is for total consideration of up to £5.6m, including an initial consideration of £4.8m.

Searle said: “We are delighted to announce that Globaleye Wealth Management will be partnering with Team to provide an enhanced product offering to its clients. There is a compelling strategic rationale for joining forces and the companies are a strong cultural fit, both with an entrepreneurial and performance-driven culture.

“Our clients will be able to benefit from Team’s highly successful multi-asset portfolio management, bespoke portfolio and cash and treasury management services. For our valued team at Globaleye Wealth Management, there will be an opportunity to work within a collegiate and client focused culture and to take advantage of Team’s complementary management and support services. I look forward to joining Team as a substantial and supportive shareholder.”

Thornton

In the second deal, Team has conditionally agreed to acquire the entire issued share capital of Thornton Associates Limited, trading as Thornton Chartered Financial Planners for a consideration of up to £2.5m.

Thornton is an Isle of Man based financial planning business with assets under advice of £121m and approximately 180 client groups. The deal allows Team to expand its operation across the Crown Dependencies.

Team plans to integrate Thornton into its financial planning activities, moving towards one operating model and brand.

On completion of the acquisition, an initial consideration of £900,000 is payable in cash, plus an amount equal to the net assets of Thornton of £250,000 less regulatory capital of £50,000.

In addition, a deferred consideration of up to £1.4m is payable, half in new Team shares and half in cash. The deferred consideration is payable in two instalments of up to £700,000, dependent upon the revenue generated by Thornton in the 24 months following Ccmpletion.

The acquisition is subject to approval by the Isle of Man Financial Services Commission and is expected to complete in Autumn 2023.

Matthew Moore, chief financial officer and chief operating officr of Team, said: “The acquisitions of Globaleye and Thornton takes Team closer to £1bn under management and advice in our target markets and extends our global footprint to seven countries. In doing so, we believe we are carving out a valuable section of the high net worth market who are living outside of their mainland home tax jurisdiction and are in need of specialist financial advice, which in the past has not been easily accessible. Team is filling that space and we see significant scope to expand further.

“In the Isle of Man, Thornton has been at the forefront of financial planning to help its clients manage, protect and maximise their wealth. In doing so, it has built a strong reputation across the island. Becoming part of Team is a natural fit and will, we believe, facilitate the next stage of growth for Thornton which will benefit from being part of a larger group, offering a wider range of services whilst maintaining the same customer centric ethos.

“We are delighted to welcome Thornton into the Group. The acquisition is a natural extension into the Isle of Man from our base in Jersey and matches our strategy to build a new wealth, asset management and complementary financial services group with a focus on the UK, Crown Dependencies and International Finance Centres.”

The minimum tax paid by new high net worth residents (HVRs) would rise from £170,000 to £250,000 ($311,000, €287,000) a year under the legislation proposed.

The rise will not affect HVRs already living on the island.

Kristina Moore, chief minister of Jersey, said: “This government welcomes people who generate wealth and contribute to sustainable economic growth, whether home-grown or those who want to make Jersey their home and become part of our community.

“We believe we have a package of measures that will maintain a stable and supportive environment for relocation and investment, whilst requiring a modest increase to their contribution to the public purse.”

Moore added that the changes reflected Jersey’s offer in return, of “a safe, stable and welcoming community; natural beauty; and excellent health and education systems, in a well-connected location”.

Other planned changes

The proposed legislation follows a review by the housing and work advisory group (HAWAG), chaired by the chief minister.

The review included looking at the number of applications and house prices data. Views of recent applicants and industry professionals were also considered.

Other planned changes following the review include increasing the minimum price of a property new HVRs can buy, from £1.75m to £3.5m and a new formal expectation that applicants should have a net worth of at least £10m, excluding their place of residence.

Ministers have also asked for more work to be done to better identify the levels of charitable giving by HVRs, through a kitemark scheme.