Guernsey vs Cayman
The optimal jurisdiction for trusts
Guernsey vs Cayman
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.
2 Guernsey vs Cayman - The optimal jurisdiction for trusts
St. Peter Port, Guernsey
Constitutional, political and geographical differences
Jurisdiction Guernsey
Constitutional, political 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 decolonisation of the UK and rollback of the British Empire.
A British Overseas Territory – relationship with the UK is political and through the UK Parliament. However, the island is a part of the Caribbean Court system.
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.
Yes, although subject to modification by Cayman Islands statute.
Known to be volatile – multiparty status has created political division and instability. In addition, the island has weaknesses in its government legislation. ✘ The island’s are often subject to extreme weather, notably hurricanes.
Cayman
Regulatory and legal differences
Jurisdiction Guernsey
Principal trust legislation
Regulatory and legal differences
The Public Trustee (Bailiwick of Guernsey) Law, 2002.
The Trusts (Guernsey) Law, 2007.
Regulatory approvals
Government Fees
Types of trust
(except for certain unit trusts).
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
Fraudulent Dispositions Law (1996 Revision)
Perpetuities Law (1999)
Banks and Trust Companies Law (2020 Revision) Trusts Law (2020 Revision)
(except for certain unit trusts).
✘ except CI $150.00 per annum if registered voluntarily as an exempted trust and in the case of certain unit trusts.
Discretionary Trust.
Life Interest Trust.
Charitable Purpose Trust.
STAR Trust.
Bare Trust.
Unit Trust.
Pension Trust.
Employee Benefit Trust.
Exempted Trusts.
Trusts with settlor reserved powers permitted.
Cayman
Regulatory and legal differences
Jurisdiction Guernsey
Establishment time
Confidentiality
Regulatory and legal differences
Within a few days for a straightforward discretionary trust subject to AML requirements being met.
No public filing requirement. Trust documents are confidential.
Within a few days for a straightforward discretionary trust subject to AML requirements being met.
No public filing requirement. Trust documents are confidential.
PTC legislation and regulations
Regulation of professional trustees
Protectors permitted
Requirement for local assets or local trust administration
Discretionary exemptions available subject to discretion of the Regulator.
Banks and Trust Companies Law (2020 revision).
Cayman
International standards/ products
Jurisdiction Guernsey
Adherence to international standards
EU Economic Substance status
Whitelisted (2009).
Compliance with FATF
Private Trust Companies permitted
Private Trust Foundations permitted
Private investment/ fund vehicles permitted Compliance with OECD
Compliant with Moneyval and fully committed to the implementation of FATF and CFT recommendations
Compliant or largely compliant with FATF and CFT recommendations
Product Comparison
✔ 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.
Guernsey vs Cayman - The optimal jurisdiction for trusts
Whitelisted (2019).
✔ Under the Fiduciaries Law.
Removed from Blacklist (2021).
✔ Under the Banks and Trust Companies Law (2020 revision).
Whitelisted (2009).
Cayman
Vazon, Guernsey
