Guernsey vs Isle of Man
The optimal jurisdiction for trusts
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.
L’Ancresse, Guernsey
Guernsey vs Isle of Man - The optimal jurisdiction for trusts
Constitutional, political and geographical differences
Jurisdiction Guernsey
Constitutional, politcal and geographical differences
Political position in the world
Historical ties to UK
A self-governing jurisdiction with more than 800 years of constitutional autonomy, having split from Normandy in 1204.
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
Not volatile – secure and stable with candidates typically being elected independently.
Application and principles of English common law
Environmentally and geographically stable
Origins based in Norman-French law, with a strong emphasis on English common law due to strong influence of UK.
✔ No major weather, geological or other environmental disasters.
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.
✔ no major weather, geological or other environmental disasters.
Isle of Man
Regulatory and legal differences
Jurisdiction Guernsey
Regulatory and legal differences
Principal trust
legislation
Regulatory approvals
Government Fees
Types of trust
The Public Trustee (Bailiwick of Guernsey) Law, 2002.
The Trusts (Guernsey) Law, 2007.
(except for certain unit trusts).
Discretionary trust.
Life Interest trust.
Purpose trust (charitable and non-charitable).
Bare trust.
Unit trust.
Pension trust.
Employee Benefit trust.
Trusts with settlor reserved powers permitted. Reserved powers can be granted to others and are wide ranging – enabling influence on investment and asset management, making distributions and in appointing and removing officers, advisors, trustees, and beneficiaries.
The Trusts Act, 1995
(except for certain unit trusts).
Discretionary trust.
Life Interest trust.
Purpose trusts (both charitable and noncharitable).
Pension trust.
Employee Benefit trust.
Accumulation and Maintenance trust.
Protective trust.
The Trusts Act permits settlor reserved powers.
Isle of Man
Regulatory and legal differences
Jurisdiction Guernsey
Regulatory and legal differences
Establishment time
Within a few days for a straightforward discretionary trust subject to AML requirements being met.
Within a few days for a straightforward discretionary trust subject to AML requirements being met.
Confidentiality
PTC legislation and regulations
Regulation of professional trustees
No public filing requirement. Trust documents are confidential.
No public filing requirement. Trust documents are confidential.
Protectors permitted
Requirement for local assets or local trust administration
Discretionary exemptions available subject to discretion of the Regulator.
Regulated through the Isle of Man Financial Services Act 2008.
International standards/ products
Jurisdiction Guernsey
Adherence to international standards
EU Economic Substance status
Compliance with OECD
Compliance with FATF
Whitelisted (2019).
Private Trust Companies permitted
Private Trust Foundations permitted
Private wealth investments investable through a fund vehicle permitted
Non-charitable purpose trusts permitted
Whitelisted (2009).
Compliant with Moneyval and fully committed to the implementation of FATF and CFT recommendations
Product Comparison
Removed from blacklist (2018) before being whitelisted (2019).
Whitelisted (2009).
Compliant or largely compliant with 39/40 FATF recommendations.
✔ Under the Fiduciaries Law. ✔ Under the Isle of
✔ Under the Fiduciaries Law.
✔ A Guernsey Private Investment Fund (PIF) can be created as a bespoke private wealth structure for those investors who hold a family relationship.
✔ Under the Trusts (Guernsey) Law.
Under the Purpose Trust Act 1996.
Man Financial Services Act 2008.
Isle of Man
St. Peter Port, Guernsey
