Foreword - August/September 2019

Musician Bob Dylan famously sang about how the times were a-changin’ back in 1964, and it is probably fair to say that, in the past 55 years, we have seen times change, for better or worse, over and over again. Currently, the geopolitical mood is in flux, leading in some cases to seismic and constitutional change (Brexit, for example).

Periods of such rapid and tumultuous change lead to uncertainty, fear and, in many cases, inactivity as uncertainty increases risk-aversion. However, change also offers opportunities for those brave enough to venture into the void. Dylan could not have foreseen the vast technological advances that are commonplace today, which, while not without their issues, have had dramatic and positive effects in the main.

Family wealth advising may not have changed quite so dramatically in its fundamental nature, but the backdrop to advising our clients is changing all the time. Particularly notable areas in which we, as advisors, have had to adapt for our clients in more recent times include increased regulation and information disclosure, as well as new types of investment, such as cryptocurrencies and digital assets, for which there is already a STEP Special Interest Group (SIG) to help increase knowledge and awareness. The world has become a smaller place, and those advising families and trusts need to have an understanding of cross-border issues, as well as international mobility in order to properly serve the ever-changing needs of our clients.

But what is a trust? Even that staple of the advisor’s offering is not the same in every jurisdiction, and although other specific permutations of a trust are becoming more widely known, including foundations and structures that are Shari’a compliant, countries around the world are also tweaking, redefining and developing their alternative structures in order to become more effective, more efficient and more attractive to global investors.

So, should we all give up now? Faced with a barrage of regulation and changing rules, laws and practices, advisors could be forgiven for approaching their work with an increased sense of trepidation. To use a dated English phrase that has fallen out of common usage: that would be poppycock. For many of us, the ever-changing nature of tax, probate and investment advice is the attraction, and the challenge, of advising clients in this area. But this is also why STEP-qualified and affiliate advisors are so highly sought after, with their extensive awareness of the field, their specialist expertise and the enviable knowledge base and support provided by STEP. Besides this journal, the premier publication on trusts and estates in the world, STEP also provides incomparable additional support through its SIGs, online resources, the Trust Quarterly Review and informative regular newswires.

This issue has a regional focus on the Caribbean and Latin America, a dynamic part of the world seeing fast-paced change, with a particular focus on changes to statutory rules on wills, trusts and secrecy laws, as well as developments in investment vehicles and taxes in Brazil and Colombia. As previously mentioned, taxes are changing all the time, and this issue looks at some changes to UK taxes, as well as the Australian Taxation Office’s cutting-edge response to the often bewildering area of cryptocurrency taxation. Our regional mini-focus on the UK and Ireland delves into other areas of change, as well as highlighting how making small changes to advising clients could have a much larger beneficial effect.

This issue of the STEP Journal will arrive as the seasons change, although which seasons will, of course, depend on where you are in the world. With this in mind, we should embrace the changes to our industry and look forward to both the opportunities present now, and those that will arise in the coming seasons. After all, as Bob Dylan sang, the times will always be a-changin’.