Guernsey vs Isle of Man
The optimal jurisdiction for trusts
Banking Insurance Investment and Funds Private Wealth Pensions Sustainable Finance
Guernsey vs Isle of Man
Guernsey has a long tradition of providing specialist private wealth management to sophisticated private clients and their families. The island is politically, economically and environmentally safe and secure.
Political position in the world
Historical ties to UK
Constitutional, political and geographical differences
A self-governing jurisdiction since 1204, with more than 800 years of constitutional autonomy
A British Crown Dependency –relationship with the UK is through the Crown not the UK Parliament.
A self-governing jurisdiction which never formally became a part of the 18th century Kingdom of Great Britain, nor its successors, including the present-day UK.
A British Crown Dependency –relationship with the UK is through the Crown not the UK parliament.
Right to appeal in UK Privy Council ✔ ✔
Political volatility
Application and principles of English common law
Environmentally and geographically stable
Not volatile – secure and stable with candidates typically being elected independently (non-partisan).
Origins based in Norman-French law, with a strong emphasis on English common law due to strong influence of UK.
Yes – no major weather, geological or other environmental disasters occur frequently.
Not volatile – internally secure and stable with candidates elected independently, although there are political parties with minor support.
Strong emphasis on English common law due to strong influence of UK.
Yes – no major weather, geological or other environmental disasters occur frequently.
Guernsey Isle of Man2
Guernsey vs Isle of Man
Regulatory and Legal Differences
Principal trust legislation
Regulatory approvals
Government Fees
Regulatory and legal differences
None (except for certain unit trusts).
None
Types of trust
Establishment time
Discretionary Trust.
Life Interest Trust.
Resulting, implied and constructive Trusts.
Purpose Trusts (both charitable and non-charitable).
Bare Trust.
Unit Trust.
Pension Trust.
Employee Benefit Trust.
The Trusts (Guernsey) Law permits settlor reserved powers.
Within a few days for a straightforward discretionary trust subject to AML requirements being met.
None (except for certain unit trusts).
None
Discretionary Trust.
Life Interest Trust.
Purpose Trusts (both charitable and non-charitable).
Pension Trust.
Employee Benefit Trust.
Accumulation and Maintenance Trust.
Protective Trust.
The Trusts Act permits settlor reserved powers.
Within a few days for a straightforward discretionary trust subject to AML requirements being met.
St. Peter Port, Guernsey The Public Trustee (Bailiwick of Guernsey) Law, 2002 The Trusts (Guernsey) Law, 2007 The Trusts Act, 1995 Guernsey Isle of Man3 guernseyfinance.com
Regulatory and Legal Differences
Confidentiality
PTC legislation and regulations
Regulation of professional trustees
Protectors permitted
Requirement for local assets or local trust administration
Beneficiaries
No public filing requirement. Trust documents are confidential.
Discretionary exemptions available subject to discretion of the Regulator.
No public filing requirement. Trust documents are confidential.
Regulated through the Isle of Man Financial Services Act 2008.
✔
None ✔ ✔ ✔
✔
Guernsey
Isle of Man
None
✔ ✘ ✘ Asset
right to remove trustee
protection legislation
4
Guernsey vs Isle of Man
Adherence to International Standards
EU Economic Substance status
Compliance with OECD
Compliance with FATF
Reported position on UNEP FI’s 21st Century Fiduciary Duty initiative.
Financial services regulator a member of the Network for Greening the Financial System
Member of the United Nation’s Financial Centres for Sustainability
Whitelisted (2019).
Whitelisted (2009). Adherence to International Standards
Whitelisted (2009).
Compliant with Moneyval and fully committed to the implementation of FATF and CFT recommendations.
Removed from blacklist (2018) before being whitelisted (2019).
Compliant or largely compliant with 39/40 FATF recommendations.
✔ ✔ Yes since 2019.
✘ ✘ Yes since 2020.
Isle
St. Peter Port, Guernsey Douglas, Isle of
5 guernseyfinance.com
Guernsey
of Man
Man
Product Comparison
Private Trust Companies permitted
Private Trust Foundations permitted
Private investment/ fund vehicles permitted
Non-charitable purpose trusts permitted
Family Investment Company permitted
– under the Fiduciaries Law.
Yes – under the Foundations Law, 2012.
Yes – a Guernsey Private Investment Fund (PIF) can be created as a bespoke private wealth structure for those investors who hold a family relationship.
Yes – under the Trusts (Guernsey) Law.
There are plans for a Family Investment Company product to be launched sometime in 2022. For more details contact grant@guernseyfinance.com
– under the Purpose Trust Act 1996.
Guernsey vs Isle of Man
✘
Yes
✘
Yes
Financial
– under the Isle of Man
Services Act 2008.
Yes
Yes – under
Isle
Financial
the
of Man
Services Act 2008.
Guernsey
Isle of Man
Product comparison
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Future developments
Guernsey Cost Saving Retention of Control Safety & Security Saints Bay, Guernsey 7 guernseyfinance.com GuernseyThe Jurisdiction of Choice
Please recycle me 70% of the wood used in creating this brochure is recycled material, with the remaining 30% from a ‘controlled/sustainable’ wood forest Somers House, Rue du Pre, St Peter Port, Guernsey GY1 1LU +44(0) 1481 720 071 info@guernseyfinance.com