Guernsey vs ISLE OF MAN The optimal jurisdiction for trusts INSURANCE INVESTMENT FUNDS TRUST & COMPANY PENSIONS MANAGEMENTINVESTMENT BANKING
Constitutional, political and geographical differences
Strong emphasis on English common law due to strong influence of UK.
Right to appeal in UK CouncilPrivy ✔ ✔ volatilityPolitical
Yes – no major weather, geological or other environmental disasters occur frequently.
Guernsey 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.
Origins based in Norman-French law, with a strong emphasis on English common law due to strong influence of UK.
andEnvironmentallygeographicallystable
2
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. tiesHistoricaltoUK
Political position in the world
Not volatile – internally secure and stable with candidates elected independently, although there are political parties with minor support.
Yes – no major weather, geological or other environmental disasters occur frequently.
Guernsey vs Isle of Man
A British Crown Dependency –relationship with the UK is through the Crown not the UK parliament.
Guernsey vs Isle of Man
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.
Not volatile – secure and stable with candidates typically being elected independently (non-partisan).
andApplicationprinciplesofEnglishcommonlaw
Discretionary Trust. Life Interest Trust. Purpose Trusts (both charitable and non-charitable). Pension EmployeeTrust.Benefit Trust. Accumulation and Maintenance Trust. Protective Trust. The Trusts Act permits settlor reserved powers.
Regulatory and legal differences
Regulatoryapprovals None (except for certain unit trusts). None (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 EmployeePensionTrust.Trust.Benefit Trust. The Trusts (Guernsey) Law permits settlor reserved powers.
Principallegislationtrust The Public Trustee (Bailiwick of Guernsey) Law, 2002 The Trusts (Guernsey) Law, 2007 The Trusts Act, 1995 Guernsey Isle of Man weareguernsey.com
ofTypestrust
GovernmentFees
3
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.
Establishmenttime
None None
rEGULATORY AND LEGAL DIFFERENCES
✔ Discretionary exemptions available subject to discretion of the Regulator. No public filing requirement. Trust documents are confidential. None ✔ ✔ ✔ Regulation professionaloftrustees ✔ PTC legislation and regulations Regulated through the Isle of Man Financial Services Act 2008. Confidentiality No public filing requirement. Trust documents are confidential. Guernsey Isle of Man 4 Guernsey vs Isle of Man forRequirementlocalassetsorlocaltrustadministration NonerightBeneficiariesProtectorspermittedtoremovetrustee ✔ ✘ ✘protectionAssetlegislation
5weareguernsey.com EU Economic CompliancestatusSubstancewithOECD
Adherence to International Standards Compliance with FATF Reported position on UNEP FI’s 21st Century Fiduciary Duty regulatorFinancialinitiative.servicesamember of the Network for Greening the Financial System
Guernsey
of Man Member of the United Nation’s Financial Centres for Sustainability aDHERENCE TO INTERNATIONAL STANDARDS
Whitelisted (2019). Whitelisted (2009). Removed from blacklist (2018) before being whitelisted (2019). Whitelisted (2009).
Compliant with Moneyval and fully committed to the implementation of FATF and CFT recommendations. ✔ ✔ Yes since 2019.
Compliant or largely compliant with 39/40 FATF recommendations. ✘ ✘ Yes since 2020. Isle
For
InvestmentFamilyCompanypermitted
grant@weareguernsey.comcontact
Private CompaniesTrustpermitted Yes
Guernsey Isle
private
fundinvestment/Privatevehiclespermitted Yes
Man Product comparison Future developments 6 Guernsey vs Isle of Man PRODUCT COMPARISON
Investment Company product to be launched
Yes
Yes – under the Foundations Law, 2012. – under the Isle of Man Financial Services Act 2008. – under the Fiduciaries Law. Yes – under the Isle of Man Financial Services Act 2008. of
Private FoundationsTrustpermitted
✘ – under the Trusts (Guernsey) Law. Yes – under the Purpose Trust Act 1996. – a Guernsey Private Investment Fund (PIF) can be created as a bespoke wealth structure for those investors who hold a family relationship.
Non-charitablepurposetrustspermitted Yes
✘
There are plans for a Family sometime in 2022. more details
Guernsey - THE JURISDICTION OF CHOICE 7weareguernsey.com Guernsey savingCost ofRetentioncontrol Safety security&
weareguernsey.com Guernsey Finance, PO Box 655, St Peter Port, Guernsey, GY1 3PN +44(0) 1481 720 071 info@weareguernsey.com 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
