26 Jul 2024
Interview

CLERMONT INSIGHTS – July 2024

IN THE INTERVIEW HOTSEAT: Andinee Perry

Location: Geneva

Current role: Trust Manager

One word that best describes how you work: Diligently

1. Andinee, can you describe a complex legal challenge you faced in trust administration and how you resolved it to ensure client satisfaction?
We recently completed a restructuring exercise with the intention of simplifying the structure and making it more cost efficient. However, to simplify the structure, we had to undergo a very complex exercise of unravelling the existing structure. It involved several parties and certain parties had more than one role. For example, one of the ultimate majority shareholders was both on the seller side and the buyer side of this transaction. Whilst in some ways this facilitated the transaction, in other ways, it complicated it. The transaction had to be at an arm’s length and often the consideration for the buyer and seller were not necessarily aligned which resulted in direct conflict of interests at times. This exercise was time consuming and expensive.

Communication was key here. We implemented weekly catch up with the relevant advisors and looped in the client in as much as possible so that he had first hand knowledge of the work involved, and so the time taken and costs were self-explanatory. Whilst at times there was frustration, for both the client and professional advisors, everyone appreciated the work involved (and the final invoice!).

2. What key trends do you see emerging in the trust and estate planning field, and how is Clermont Trust positioning itself to stay ahead of these trends?
The Trust and estate planning is always evolving and more so in recent times.

The only way to keep ahead of the trend is to keep up to date with the latest developments. I usually find networking events very helpful in that regard. It is also a great way of meeting key individuals in the industry and participating in discussions on proposed changes or new laws. For example, with the recent introduction of a beneficial ownership register in the BVI, there will be a consultation period and Clermont intends on participating in these consultations and providing first-hand experiences on the practicalities of having such a register and how it should work. .

3. Can you debunk a common myth about trust administration and clarify what your role as a Trust Manager truly involves?
There are so many myths when it comes to trusts. Many believe that anyone looking to set up trust structures are looking to avoid tax. However, the majority of our clients are actually setting up trusts for the purposes of succession planning and protecting assets for the future generation.

Tax is not usually a factor. Of course, it is always sensible to ensure the structure is set up in the most tax efficient way but not at the cost of jeopardising the principal purpose of setting up the trust.

Unfortunately, as a result of this myth, often trust structures are subject to scrutiny and are penalised. More recently, the former conservative government in the UK introduced several changes to the non-dom regime which will have a significant impact on trust. There may be further inheritance tax implications on trust to come following Labour’s win.

4. Living in Switzerland, how do the local regulatory and legal environments influence your work in trust and estate planning?
Historically, Switzerland has had very strict confidentiality laws to protect the privacy of high net wealth individuals. But due to international pressure, Switzerland has had to make changes (grudgingly).

There is clearly an appreciation for transparency but this needs to be balanced with the privacy of the individuals. So, in this regard, Switzerland has increased its compliance and Know Your Clients requirements so that the relevant institutions such as banks can be satisfied that the assets held are not subject to any financial crime.

As a trust manager, this can be challenging (both in time taken and expenses) to adhere to such high standards but as a cohesive team, with members in both Mauritius and Switzerland, we ensure strict adherence to the compliance rules in Switzerland. Despite the Mauritius team not being physically present in Switzerland, they are well-versed in the Swiss regulations and the necessary compliance requirements. This knowledge allows us to operate seamlessly, ensuring that all our activities align with the stringent standards of Swiss confidentiality and regulatory frameworks.

5. What advice would you give to clients to help them better understand the importance of legal compliance in trust administration?
Given the severe consequences, it is clear that non-compliance of legal requirements is not a viable option. The risks and potential damages to the trust and individuals involved far outweigh any perceived short-term benefits of bypassing legal requirements. Adhering to legal compliance is essential to ensure the trust’s integrity, protect its assets and the beneficiaries. Once the client understands the consequences and the logic behind the request, they often concede. Like I mentioned above, a lot of clients are setting up trusts to protect the assets for the future generation and so it would be illogical to then risk that.

6. If you could invite three famous people, alive or dead, to a dinner party, who would they be and what would you discuss with them?
I would love to meet Celine Dion – I absolutely love her music and so my request would be for her to perform rather than discuss.

I would not say no to a dinner party with Leonardo DiCaprio either. I was (and continue to be) a huge fan of his films. I love the fact that he has chosen to act in many movies which challenges his acting skills but also movies to highlight controversial topics such as Blood Diamond.

I would love to meet Gandhi – my mum has always been a believer that no one person can make a difference. Well Gandhi was one person and the changes he has invoked internationally are incredible and this was before the days of internet. He once very wisely said that “You must be the change you wish to see in the world.” In other words: you cannot control the actions of others but you can control yours.

7. Outside of your professional responsibilities, what are your passions or interests, and how do they contribute to your effectiveness in your current role?
Food is my main passion – does that contribute to my effectiveness in my current role? I guess one could say yes – if I am well fed, I perform well!!

I love to run during my lunch break and find that it energises me in the afternoons.

Thank you for your contribution!