Knowledge

Guernsey has tightened and clarified the regulatory perimeter for private trust companies ("PTCs"). The Guernsey Financial Services Commission (the "GFSC") has amended its public guidance to confirm that PTCs fall within the scope of the Regulation of Fiduciaries, Administration Businesses and Company Directors, etc. (Bailiwick of Guernsey) Law, 2020 (the "Fiduciaries Law"). In practical terms, a PTC must now either hold a fiduciary licence under section 6 of the Fiduciaries Law, or obtain limited permission under section 3(1)(ac) of the Fiduciaries Law.  The GFSC frames this update as aligning published guidance with current practice following its 2024 review of PTCs in readiness for Moneyval, the Council of Europe's anti-money laundering body. Guernsey received a positive Moneyval report in February 2025.

Historically, Guernsey accommodated PTCs through a discretionary exemption from licensing, provided certain criteria were met, and there was also a strong focus on whether the PTC was acting "by way of business" (usually evidenced by the receipt of compensation for trustee services). The GFSC's updated public guidance now provides that all Guernsey PTCs fall within scope of the Fiduciaries Law and must either be fully licensed or operate under an express limited permission. The update confirms that reliance on a PTC acting “not by way of business” to stay outside of the scope of the regime is no longer appropriate.

Route A: full fiduciary licence (s.6):  A PTC (or its managing entity) can apply for a standard fiduciary licence. This is likely to be used only where it has sufficient in-house capability to meet the regulatory requirements under the Fiduciaries Law, and where this is warranted by its business model and scale of operations.

Route B: limited permission (s.3(1)(ac)): PTCs are more likely to apply for permission on a limited basis, which requires that they meet certain criteria and are supported by a licensed fiduciary. The GFSC's criteria, as reflected in the updated guidance, substantially mirrors the previous criteria for discretionary exemption:

• the PTC acts only as trustee of one trust or a group of connected trusts with a common family interest;
• there is no marketing to the public;
• the PTC is administered by a company licensed under the Fiduciaries Law; and
• such company confirms to the GFSC that it will retain sufficient knowledge and information about the PTC's ownership and control to be satisfied that it is effectively administered and governed, and compliant with Guernsey law and regulation (usually achieved by providing a director, company secretary or authorised signatory to the PTC to maintain effective oversight/governance, and embedding appropriate AML/CFT/CPF controls).

The permission is granted with a time limit, generally three years, with renewal as needed. The licensed fiduciary administering the PTC should maintain records such that beneficial ownership, directors/controllers, and trust party information (including settlors, beneficiaries and protectors) are available to the GFSC on request.

It is advisable for existing PTCs, whether previously holding an exemption letter or operating "not by way of business", to review their regulatory position. In most cases, the practical next step will be for PTCs not currently licensed to apply for limited permission under s.3(1)(ac), unless a full license is warranted under the circumstances. The success of applications will depend on the licensed fiduciary having an appropriate level of oversight and information/record-keeping.

New PTCs will require a limited permission application to be prepared alongside their constitutional documents.

If you would like to discuss your PTC's requirements, please get in touch with a member of our International Private Client Team.