Guernsey vs Mauritius
The optimal jurisdiction for trusts
Guernsey vs Mauritius
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.
Guernsey vs Mauritius - The optimal jurisdiction for trusts
St. Peter Port, Guernsey
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 following independence from Britain in 1968.
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
Origins based in Norman-French law, with a strong emphasis on English common law due to strong influence of UK.
None, historical ties are more closely connected to France.
Limited acces through the Judicial Committee.
Not volatile – internally secure and stable with candidates elected via multiparty system. However, the island is in a politically volatile region.
Amalgamation of French civil law and English common law.
Environmentally and geographically stable
✔ No major weather, geological or other environmental disasters.
✘ island often subject to extreme weather, notably tropical cyclones.
Mauritius
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, 2001
(except for certain unit trusts).
As per the Finance Act, 2021, non-resident trusts can no longer file for non-residency declaration, to prove that they are not based in Mauritius and so can no longer prove that they do not have to pay tax on the structure. A 15% tax on trusts with income generated in Mauritius is enforced.
Possession Trust.
Charitable Trust.
Purpose Trust.
Accumulation and maintenance Trusts.
Bare Trust.
Protective Trust.
Discretionary Trust.
Employee Benefit Trust.
The Trusts (Mauritius) Law permits settlor reserved powers.
Mauritius
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 once relevant requirements have been met. For a PTC this includes a prepared, audited account.
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.
Private Trust Company legislation does not exist. However, the financial services regulator has declared that where a private company acts as a Trustee for a specific number of Trusts for the benefit of a family it will not be considered as carrying out trust business.
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
✔ Under the Fiduciaries Law.
✔ 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.
Removed from Blacklist (2020).
Whitelisted (2009).
Compliant or largely compliant with FATF and CFT recommendations
✔ although formal Private Trust Company legislation does not exist.
✔ under the Foundations Act.
✔ Under the Trusts (Guernsey) Law.
✔ Under the Trusts (Jersey) Law.
Guernsey vs Mauritius - The optimal jurisdiction for trusts
Mauritius
Cobo, Guernsey
