Guernsey vs BVI
The optimal jurisdiciton for trusts
Guernsey vs BVI
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 BVI - 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
A self-governing jurisdiction with more than 800 years of constitutional autonomy, having split from Normandy in 1204.
A self-governing jurisdiction following decolonisation of the UK and rollback of the British Empire.
Historical ties to UK
A British Crown Dependency – relationship with the UK is through the Crown not the UK Parliament.
A British Overseas Territory – relationship with the UK is political and through the UK Parliament. The island is a part of the Caribbean Court system.
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.
Known to be volatile – multiparty status has created political division and instability.
Origins based in Norman-French law, with a strong emphasis on English common law due to strong influence of UK.
Yes, although subject to modification by BVI statute.
No major weather, geological or other environmental disasters.
The island is often subject to extreme weather, notably hurricanes, and tornadoes.
Regulatory and Legal Differences
Jurisdiction Guernsey
Regulatory and legal differences
Principal trust legislation
The Public Trustee (Bailiwick of Guernsey) Law, 2002.
The Trusts (Guernsey) Law, 2007.
Government Fees Regulatory approvals
Types of trust
(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.
Trustee Act 1961 (as amended).
Virgin Islands Special Trusts Act 2003 (VISTA).
Recognition of Trusts Act (Overseas Territories) Order 1987.
Trustees’ Relief Act.
(except for certain unit trusts).
Discretionary trust.
Life interest trust.
Purpose trust (both charitable and non-charitable).
Bare trust.
Unit trust.
Pension trust.
Employee Benefit trust.
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.
Financial Services (Exemptions) Regulations 2007 (as amended 2013).
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
Compliant with Moneyval and fully committed to the implementation of FATF and CFT recommendations Whitelisted (2009).
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.
Whitelisted (2019).
Compliant or largely compliant with FATF and CFT recommendations Whitelisted (2009).
✔ Under the Financial Services (Exemptions) Regulations, 2007
✔ Under the Financial Services (Exemptions) Regulations, 2007
St. Peter Port, Guernsey
