Gibraltar has introduced Private Trust Company (“PTC”) legislation. http://www.gibraltarlaws.gov.gi/articles/2015-16o.pdf The private trust company's sole purpose is to act as trustee to the trust (or group of trusts) belonging to the group; these trusts may be to assist in family succession, commercial or philanthropic in their goals. Typically PTC’s seek to use a private trust company to achieve some or all of the following: (a) privacy, (b) control and influence, (c) reduction in costs, and (d) improved protection from fiduciary risk. The Private Trust Company Act 2015 will be a great addition to Gibraltar’s trust offering especially, but by no means exclusively, in the context of family offices. Private trust companies, or PTC’s, may already be established in Gibraltar. Any limited company may act as a trustee provided that it is not carrying on a licensable activity. Typically, however, such a company will notify the Gibraltar Financial Services Commission (www.fsc.gi) (a) that it has been formed to administer a trust settled by one or more individuals; (b) that this is its sole purpose; and (c) that it will not receive remuneration for providing trusteeship… in order to be able to act as a trustee of any one or more trusts, often the trusts of the family. While this provides a simple and cost-effective process for establishing a PTC, the lack of a formal registration procedure sometimes prevents clients and intermediaries from recommending Gibraltar as an appropriate jurisdiction for the incorporation of a PTC as there is no legislative or regulatory framework from within which the PTC is formally recognised and can operate. Introducing a law to govern the operation of PTC’s will provide greater legislative protection and certainty and encourage potential clients to consider Gibraltar as an attractive jurisdiction in which to establish a PTC structure. At present Gibraltar is at a disadvantage compared to other international financial centres, which have made specific provisions for PTC’s in their legislation. It is appropriate to report and to mention that the Society of Trust and Estate Practitioners, who have been promulgating this legislation together with a series of other Bills, are delighted at the steps that we are taking. There are numerous benefits to appointing a PTC as a trustee of a trust in place of professional individuals or licenced profession trustees. A mandatory registration regime could be unfairly and unnecessarily onerous, especially on PTC’s in respect of which the cost of registration and renewal might be disproportionate to the size of the trust fund. Therefore a voluntary system of registration would provide, for those who chose to submit to it, a legal framework within which a PTC could be officially established and operated, whilst at the same time provide flexibility for those seeking to opt out of it. The legislation therefore fills a gap in Gibraltar’s offering as an international finance centre without prejudicing those who may have felt caught by a mandatory system of registration. Notwithstanding the voluntary character of the PTC regime however the proposed legislation provides for, among other matters, the establishment of a register, and for inspection of the register by members of the public and registration and renewal to be accompanied by a declaration of compliance. Registration of Private Trust Companies. A company that wishes to undertake Connected Trust Business from or within Gibraltar may register as a Private Trust Company in accordance with the provisions of the Act. Establishment of Registrar and Register of Private Trust Companies. There is established the office of the Registrar of Private Trust Companies which shall be held by the Registrar of Companies appointed under section 420(1) of the Companies Act. Gibraltar Finance @2015
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