Fresh approach coming on how far to go on public access to company ownership

Monday 11 December 2023

Guernsey is expected to come up with a fresh commitment on its approach to who can access information on the ultimate owners of companies by the end of the year.

It is under pressure from the UK Government to come up with an answer after work stalled on allowing full public access after a European court ruling in November 2022.

Who owns companies in the islands is often hidden, but campaigners and politicians believe unmasking them can help in the fight against tax evasion and conflicts of interest.

Talks have taken place with the UK about an interim step to allow access to those with a legitimate interest, including journalists, next year.

After a debate in the House of Commons in which Labour MP Dame Margarat Hodge argued that the Crown dependencies were acting in a dishonourable way and that the UK can legislate for the islands on the issue, Policy & Resources President Deputy Peter Ferbrache said that Guernsey had made clear progress since making a commitment to transparency in 2019.

Pictured: Deputy Peter Ferbrache.

“The judgment of the Court of Justice of the European Union (CJEU) on the infringement of the right to privacy by public registers is relevant, because this is also a right under the European Convention on Human Rights.  

“These are significant considerations for Guernsey to take into account as it recasts its 2019 commitment to provide the same clear policy objectives to combat financial crime, which we share with the UK and other responsible jurisdictions.  

“It is important for Guernsey that we continue to respect and fulfil our international obligations.  This also includes considering what the CJEU judgment said about access for obliged entities and those with a legitimate interest.”

The UK believes in public access to registers and maintains that they can be legally implemented despite the ruling.

14 EU member states still allow public access to their beneficial ownership registers ‘ 

“The UK Government has been consistent in its position of promoting public registers on beneficial ownership, including for its Overseas Territories as well as for the Crown Dependencies,” said Deputy Ferbrache.

He said that it was helpful that Foreign Office Minister David Rutley MP referred to the CJEU judgment as changing the international context, that it caused concerns for the OTs and Crown Dependencies and that differing views exist on the ruling.   

“Briefing material was provided by Guernsey to a number of MPs prior to the backbench debate and this was reflected in some contributions, including from the Shadow Minister for Europe and North America, Stephen Doughty MP, in his response during debate.”

But Deputy Ferbahce said it was unfortunate that some issues were oversimplified and did not reflect the island’s current position.  

Pictured: Dame Margaret Hodge.

“Guernsey is not part of the United Kingdom, and never has been.  The Rt Hon Dame Margaret Hodge MP is much mistaken in her view on the matters of constitutional law in respect of the UK Parliament's right to legislate for the Crown Dependencies in the way she suggested.  Although it is sometimes convenient for UK politicians to refer to the Overseas Territories and Crown Dependencies together, as if they have the same constitutional relationship with the UK, the two types of jurisdictions are, and always have been, distinctly different.” 

A shadow minister, Mr Doughty referred to seeing a statement that the Crown dependencies will come forward with a public commitment in relation to their approach to access to information on registers of beneficial ownership by the end of December 2023, to replace the 2019 commitment.