GUERNSEY vs BVI The optimal jurisdiction for trusts INSURANCE INVESTMENT FUNDS TRUST & COMPANY PENSIONS MANAGEMENTINVESTMENT BANKING
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 BVI – The optimal jurisdiction for trusts GUERNSEY vs BVI
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.
JURISDICTION CONSTITUTIONAL,GUERNSEY
CONSTITUTIONAL, POLITICAL AND GEOGRAPHICAL DIFFERENCES
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. Known to be volatile – multiparty status has created political division and instability.
✘ The island is often subject to extreme weather, notably hurricanes, and tornadoes. BVI weareguernsey.com
✔ Yes, although subject to modification by BVI statute.
✔ No major weather, geological or other environmental disasters.
3
✔ Origins based in Norman-French law, with a strong emphasis on English common law due to strong influence of UK.
Political position in the world Right to appeal in UK privy
POLITICAL AND GEOGRAPHICAL DIFFERENCES
A self-governing jurisdiction following decolonisation of the UK and rollback of the British Empire.
A self-governing jurisdiction with more than 800 years of constitutional autonomy, having split from Normandy in 1204.
geographicallyEnvironmentallyPoliticalHistoricalcommonprinciplesApplicationcouncilandofEnglishlawtiestoUKvolatilityandstable
REGULATORY AND LEGAL DIFFERENCES
Discretionary trust. Life interest trust. Purpose trust (both charitable and non-charitable). Bare trust. Unit EmployeePensiontrust.trust.Benefit trust. BVI 4 Guernsey vs BVI – The optimal jurisdiction for trusts
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 EmployeePensionTrust.Trust.Benefit Trust. Trusts with settlor reserved powers permitted Trustee Act 1961 (as amended). Virgin Islands Special Trusts Act 2003 (VISTA).
JURISDICTION DIFFERENCES
Principal TypesRegulatoryGovernmentlegislationtrustFeesapprovalsoftrust
GUERNSEYREGULATORY AND LEGAL
Recognition of Trusts Act (Overseas Territories) Order Trustees’1987.Relief Act. ✘ ✘ (except for certain unit trusts).
JURISDICTION GUERNSEYREGULATORY AND LEGAL DIFFERENCES Establishment time PTC legislation and assetsRequirementprofessionalRegulationConfidentialityProtectorsregulationspermittedoftrusteesforlocalorlocaltrustadministration Within a few days for a straightforward discretionary trust subject to AML requirements being Discretionarymet. exemptions available subject to discretion of the Regulator. ✔ No public filing requirement. Trust documents are confidential. ✔ ✘ Within a few days for a straightforward discretionary trust subject to AML requirements being Financialmet.Services (Exemptions) Regulations 2007 (as amended 2013). ✔ No public filing requirement. Trust documents are confidential. ✔ ✘ BVI 5weareguernsey.com
INTERNATIONAL STANDARDS/PRODUCTS JURISDICTION GUERNSEYADHERENCE TO INTERNATIONAL STANDARDS PRODUCT COMPARISON EU FoundationsPrivatewithCompliancefundPrivateComplianceCompaniesPrivateSubstanceEconomicstatusTrustpermittedwithFATFinvestment/vehiclespermittedOECDTrustpermitted Whitelisted (2019). ✔ Under the Fiduciaries Law. Compliant with Moneyval and fully committed to the implementation of FATF and CFT recommendations ✔ A Guernsey Private Investment Fund (PIF) can be created as a bespoke private wealth structure for those investors who hold a family relationship. Whitelisted (2009). ✔ Under the Fiduciaries Law. Whitelisted (2020). ✔ Under the Financial Services (Exemptions) Regulations, 2007. Compliant or largely compliant with FATF and CFT recommendations ✘ Whitelisted (2009). ✘ BVI 6 Guernsey vs BVI – The optimal jurisdiction for trusts
Guernsey service providers are renowned for offering competitive fees, and structures that enable a greater retention of control for clients and their families. JURISDICTION GUERNSEY FUTURE DEVELOPMENTS Family CompanyInvestmentpermitted There are plans to allow the creation of a Family Investment Company product, which is due for completion year end 2021. For more details contact arobinson@weareguernsey.com ✘ BVI sacostving ofretentioncontrol safety GUERNSEYsecurityand 7weareguernsey.com future developments FIND A PRACTITIONER TODAY! Visit the business directory at weareguernsey.com
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
