GUERNSEY vs JERSEY 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 Jersey – The optimal jurisdiction for trusts GUERNSEY vs JERSEY
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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. 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.
CONSTITUTIONAL,GUERNSEY
POLITICAL AND GEOGRAPHICAL DIFFERENCES
✔ No major weather, geological or other environmental disasters.
Political position in the world Right to appeal in UK privy
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. 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
✔ No major weather, geological or other environmental disasters. JERSEY weareguernsey.com
CONSTITUTIONAL, POLITICAL AND GEOGRAPHICAL DIFFERENCES
geographicallyEnvironmentallyPoliticalHistoricalcommonprinciplesApplicationcouncilandofEnglishlawtiestoUKvolatilityandstable
GUERNSEYREGULATORY
Principal TypesRegulatoryGovernmentlegislationtrustFeesapprovalsoftrust
LEGAL
JURISDICTION AND DIFFERENCES
The Public Trustee (Bailiwick of Guernsey) Law, 2002. The Trusts (Guernsey) Law, 2007. ✘ ✘ (except for certain unit trusts).
REGULATORY AND LEGAL DIFFERENCES
Guernsey vs Jersey – The optimal jurisdiction for trusts
Trusts (Jersey) Law, 1984. ✘ ✘ (except for certain unit trusts).
Bare trust. Unit EmployeePensionTrust.Trust.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.
Discretionary trust. Life Interest trust. Purpose trust (charitable and non-charitable). Bare trust. Unit EmployeePensionTrust.Trust.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.
JERSEY
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Discretionary trust. Life Interest trust. Purpose trust (charitable and non-charitable).
JURISDICTION GUERNSEYREGULATORY AND LEGAL DIFFERENCES Establishment time PTC legislation and administrationassetsRequirementprofessionalRegulationConfidentialityProtectorsregulationspermittedoftrusteesforlocalorlocaltrust 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. ✔ Guernsey Financial Services Commission. ✘ Within a few days for a straightforward discretionary trust subject to AML requirements being Regulatedmet. through the Financial Services (Trust Company Business (Exemptions) (Jersey) Order 2000. ✔ No public filing requirement. Trust documents are confidential. ✔ Jersey Financial Services Commission. ✘ JERSEY 5weareguernsey.com
✔ Under the Fiduciaries Law. ✔ Under the Fiduciaries Law. INTERNATIONAL STANDARDS/PRODUCTS JURISDICTION GUERNSEYADHERENCE TO INTERNATIONAL STANDARDS PRODUCT COMPARISON EU FoundationsPrivateCompliancepermittedpurposeNon-charitableCompliancevehiclethroughinvestmentsPrivateCompaniesPrivateSubstanceEconomicstatusTrustpermittedwealthinvestableafundpermittedwithFATFtrustswithOECDTrustpermitted Whitelisted (2019). ✔ A Guernsey Private Investment Fund (PIF) can be created as a bespoke private wealth structure for those investors who hold a family relationship. Compliant with Moneyval and fully committed to the implementation of FATF and CFT recommendations ✔ Under the Trusts (Guernsey) Law. Whitelisted (2009). ✔ Under the Fiduciaries Law. Whitelisted (2019). ✘ Compliant or largely compliant with FATF and CFT recommendations ✔ Under the Trusts (Jersey) Law. Whitelisted (2009). ✘ JERSEY 6 Guernsey vs Jersey – 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 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 ✘ Although the island may be developing a form of FIC, which non-rival jurisdictions can also utilise. JERSEY sacostving ofretentioncontrol safety GUERNSEYsecurityand FUTURE DEVELOPMENTS 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
