This Is Guernsey

By Tom Edwards

Gavin St Pier

GUERNSEY’S new Trusts Law will come into effect from Monday 17 March.

It was passed by the States last July, given royal assent by the Privy Council on Tuesday 12 February and was registered with Guernsey’s Royal Court on Monday 18 February.

Some of the most significant changes include the introduction of non-charitable Purpose Trusts and the removal of limits on the length of a trust’s duration, allowing perpetual trusts. Barclays Wealth Guernsey director Gavin St Pier said: ‘Fiduciary practitioners are looking forward to the law’s enactment.’

‘The changes it is set to make to the island’s trust legislation are expected to give us enhanced flexibility in providing solutions to meet the ever-evolving needs of our international client base.’

Guernsey has more than 50 years’ experience in providing trust and corporate services.

The island is home to more than 140 licensed fiduciaries, ranging from large organisations to independent boutique operations.

Together, they hold £200-300bn-worth of trust assets.

The new law has its roots in a series of proposals made in the Evans Report, which was published following a review of Guernsey’s trust legislation by a working party headed by Advocate Rupert Evans.

Other changes it includes are clarification of the position of retiring trustees and the circumstances under which information must be given to beneficiaries.

It also abolishes the liability of directors of corporate trustees based in Guernsey or acting as trustees of Guernsey law trusts, to encourage greater use of Private Trust Companies.

GuernseyFinance chief executive Peter Niven said it showed how the States, the GFSC and industry practitioners continually work together to maintain an environment that maximises business flows.

‘Guernsey’s fiduciary industry has built a reputation for professionalism and expertise in using the modern structures that are available on the island for the preservation of both institutional and individual/family wealth and assets.

‘The amendments to Guernsey’s trust legislation include several significant changes, such as the introduction of Purpose Trusts, that will particularly enhance the island’s fiduciary environment.

‘However, we are far from resting on our laurels and work continues to introduce legislation that will allow the establishment of foundations.

‘The addition of this innovative

tool will ensure that the island’s practitioners are able to offer their

internationally mobile clients the widest spectrum of products and services.’

A copy of the new law is available at www.guernseyfinance.com in the publications section of the media centre.