A shift towards outcomes-based regulation of private trust companies in Guernsey
17 June 2019
The Guernsey Financial Services Commission has released important guidance for private trust companies and licensed fiduciaries who administer them. The clarity and simplicity of licensing exemptions will be welcome news for local industry and those looking to take advantage of one of Guernsey's best private wealth management tools.
Click here to read the guidance notes on Private Trust Companies.
A private trust company ("PTC") is a company that acts as trustee to a specific trust or group of trust structures. These services are classed as regulated activity and subject to supervision by the Commission. However, a PTC may apply to be exempted from the requirement to obtain a full fiduciary license.
Exemptions for PTCs are routinely sought when being set up. Those establishing these types of structures can now have greater confidence in the exemption criteria and the Commission's approach to treat each case on its own facts. Indeed, discretionary exemptions may also be granted to private trust foundations which have proved popular since the introduction of Guernsey's foundation legislation.
It will continue to be the responsibility of the licensed fiduciary that administers the PTC to retain sufficient knowledge and information about its ownership and control structure and to satisfy the Commission of the PTC's effective governance and AML/CFT controls. In doing so, the Commission will consider the proposed arrangements in the round rather than just prescriptive requirements.