www.captiveinternational.com EDITOR’S LETTER 3
Owen Faulkner, editor, Captive International
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Captive International – ISSN
Cover Image: iStock Photo / OGphoto
aptive insurance domiciles outside the EU have been given until
December 31 to make good on their commitments to address
concerns around economic substance that have been identified
by the EU’s Code of Conduct Group.
The EU list of non-cooperative jurisdictions, aka the blacklist, has set
requirements that must be met, including tax transparency, fair taxation, and
a commitment to anti-base erosion and profit shifting (BEPS) measures.
Domiciles such as Bermuda, the Cayman Islands, Guernsey, the Isle of Man
and Jersey have all found themselves on the EU’s ‘grey list’, meaning they
have agreed to modify their tax regimes to comply with rules set out by the
Code of Conduct Group, lest they be deemed a non-cooperative jurisdiction
and placed on the blacklist.
In this issue of Captive International, we provide details of these
requirements, and the efforts made by domiciles to adhere to them. However,
there is still a great deal of uncertainty with regard to what the repercussions
of the blacklist are, along with the EU’s unclear definition of what is actually
required—which in turn has led to a fair share of criticism.
Substance was a big topic at the Guernsey Insurance Forum in October, as
well as the future of Guernsey’s captive insurance market in relation to Brexit
and the London Market. Captive International reported live from the event
and has provided coverage of the panels in one feature.
This issue also features commentary on the lawsuit against Moody’s
Assurance Company (MAC), where a former employee of Moody’s alleged that
MAC was fraudulently treated as a captive on various financial statements.
Industry veteran Hugh Rosenbaum writes about his scepticism of “market
rates” touted by critics of captives, and Dan Duncan of Mountain West
Premium Finance Corp discusses the importance and prevalence of premium
financing in the pure captives space.
We hope you enjoy the issue. l