PRIVATE TRUST COMPANIES

 

The Financial Services (Exemptions) Regulations, 2007 (the “Regulations”) provide that a PTC acting as A trustee to a Qualifying Trust is exempt from the licencing provisions of the Banks and Trust Companies Act, 1990.

 

A trust is a Qualifying Trust if either;

a)    the PTC is unremunerated and does not offer services to the general public, or

b)     the beneficiaries are connected to the settler, (allowable relationships are defined in the Regulations), or a charity.

 

A company formed as a PTC must state that it is a PTC in its Memorandum of Association and must include (PTC) in its name.

 

The ability of BVI companies to act as trustee is integral to the provision of a comprehensive range of financial services.  Following on from the enactment of the Virgin islands Special Trust Act, the Regulations ensure that BVI maintains its reputation as a modern, progressive and innovative trust domicile.

 

In keeping with the FSC policy of ensuring that BVI service providers are well regulated the Registered Agent of the PTC must hold a Class 1 licence and take reasonable steps to periodically ensure that the PTC qualifies as such.  This provides a well regulated framework whilst affording flexibility for clients to establish structures to meet their legitimate estate planning needs.

 

The introduction of the PTC makes the BVI a highly attractive jurisdiction for connected trusts.  Blenheim will be pleased to assist with the formation of Private Trust Companies in the BVI.