GUERNSEY vs CAYMAN 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 Cayman – The optimal jurisdiction for trusts GUERNSEY vs CAYMAN
A self-governing jurisdiction with more than 800 years of constitutional autonomy, having split from Normandy in 1204. ✔ Origins based in Norman-French law, with a strong emphasis on English common law due to strong influence of UK.
GEOGRAPHICAL
✔ No major weather, geological or other environmental disasters.
CONSTITUTIONAL, POLITICAL AND GEOGRAPHICAL DIFFERENCES
EnvironmentallyPoliticalHistoricalcommonprinciplesApplicationcouncilandofEnglishlawtiestoUKvolatilityandgeographicallystable
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. Known to be volatile – multiparty status has created political division and instability. In addition, the island has weaknesses in its government legislation.
POLITICAL AND DIFFERENCES
Not volatile – secure and stable with candidates typically being elected independently.
A self-governing jurisdiction following decolonisation of the UK and rollback of the British Empire.
JURISDICTION CONSTITUTIONAL,GUERNSEY
Political position in the world Right to appeal in UK privy
CAYMAN weareguernsey.com
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✔ Yes, although subject to modification by Cayman Islands statute.
✘ The island’s are often subject to extreme weather, notably hurricanes.
A British Crown Dependency – relationship with the UK is through the Crown not the UK Parliament.
CAYMAN Guernsey vs Cayman – The optimal jurisdiction for trusts
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LEGAL
TypesRegulatoryGovernmentlegislationtrustFeesapprovalsoftrust
The Public Trustee (Bailiwick of Guernsey) Law, 2002. The Trusts (Guernsey) Law, 2007. (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.
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REGULATORY AND LEGAL DIFFERENCES
GUERNSEYREGULATORY
Principal
Fraudulent Dispositions Law (1996 Revision) Perpetuities Law (1999) Banks and Trust Companies Law (2020 Revision) Trusts Law (2020 Revision) except CI $150.00 per annum if registered voluntarily as an exempted trust and in the case of certain unit trusts. ✘ (except for certain unit trusts). Discretionary Trust. Life Interest Trust. Charitable Purpose Trust. STAR Trust. Bare Trust. Unit EmployeePensionTrust.Trust.Benefit Trust. Exempted Trusts. Trusts with settlor reserved powers permitted.
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JURISDICTION AND DIFFERENCES
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 met. Banks and Trust Companies Law (2020 revision). ✔ No public filing requirement. Trust documents are confidential. ✔ ✘ CAYMAN 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. Removed from Blacklist (2021). ✔ Under the Banks and Trust Companies Law (2020 Compliantrevision).orlargely compliant with FATF and CFT recommendations ✘ Whitelisted (2009). ✘ CAYMAN 6 Guernsey vs Cayman – 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 ✘ CAYMAN 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
