PROPOSED reforms to Guernsey’s trust legislation have gone out to consultation. The changes aim to create a more flexible framework for the local industry to ensure the island remains a competitive jurisdiction for fiduciary structures.

If approved, they will replace the 1989 law rather than amend it.

The public consultation follows extensive talks by a working party chaired by Ozannes partner Advocate Rupert Evans.

The draft law has been written up and is available on the Commerce and Employment and Guernsey Financial Services Commission websites.

Advocate Evans said its deliberations had gone hand in hand with ongoing discussions with the industry.

‘The result of the substantial work will, without doubt, ensure that Guernsey practitioners are able to provide an international client base with the most up-to-date services and products,’ he said.

‘In addition we are now starting on the next phase of the work, which will introduce the concept of foundations to Guernsey law and again ensure that we have the widest range of products available for our increasingly-demanding client base.’

The working party was constituted by the Financial Industry Policy Advisory Group established by Commerce and Employment.

It included GFSC director of fiduciary services Stephen Trevor, Advocate Russell Clark, of Carey Olsen, Gavin St Pier, of Walbrook, and Ian Burns, chairman of the Guernsey Association of Trustees and the Anson Group.

Advocate Clark, deputy managing partner at Carey Olsen and head of the fiduciary team, was closely involved in the drafting of the new legislation.

He said the changes offered numerous benefits to the local industry and opened up new market segments for potential development.

He said the offshore finance sector was increasingly competitive, with many new jurisdictions opening for business.

But Guernsey’s ongoing success was largely attributable to its flexible approach to an ever-changing marketplace balanced by being a well-regulated and reputable place to conduct business.

‘The local fiduciary sector has shown strong growth and with these latest developments, I am sure that this will continue.’

Peter Niven, director of finance sector development at Commerce and Employment, said the department was extremely grateful to Advocate Evans and his working party for their dedication to the task.

‘We believe the results will be very much welcomed by the industry. It will ensure Guernsey remains at the forefront of the fiduciary business internationally and better competes on the world stage.’

Advocate Clark is running in-house presentations for the local fiduciary sector to outline the new law in more detail and to explain the implications for the industry.

* Comments on the draft legislation are invited from all interested parties and should be submitted to Mr Niven at Commerce and Employment by 11 May.