Managed Trust Companies are the arrangement by which an
existing licensed service provider takes responsibility for the
operational functions of a trust business, set up and owned by
another company. For example, they allow company A' to
beneficially own a Guernsey Managed Trust Company B',
which then provides services to company A's clients.
Sometimes the provision of services in this way is referred to
as "white labelling".
This Managed Trust Company would be administered by a
Guernsey based fiduciary services company which would provide
all necessary officers and ensure it complies with local
Benefits of Managed Trust Companies
The name of the Managed Trust Company often reflects the
name of its parent company rather than the fiduciary services
company. The company can therefore extend their product
offering to their clients without incurring the substantial
expense and fixed costs of establishing, resourcing and
equipping its own office.
The fiduciary services company would provide access to
specialist and experienced professionals who have existing
relationships with local regulators, allowing a company to
establish an offshore presence whilst maintaining the high
standard of service that their clients expect.
Setting up a Managed Trust Company
A Managed Trust Company must obtain prior approval from the
Guernsey Financial Services Commission (GFSC) and a licence to
conduct trust company business.
The GFSC's primary concern is to safeguard both the
good reputation of Guernsey's finance industry and the
assets of clients. It requires the following information for
approving an application for a Managed Trust Company:
Who are the proposed shareholders and directors of the
Managed Trust Company?
Which licensed Guernsey trust company is to manage the
business of the Managed Trust Company?
Confirmation that all appropriate records of the
client's trusts and companies will be properly
maintained within Guernsey by the licensed company.
An independent firm of auditors will be appointed to
audit the annual accounts of the Managed Trust Company as
well as its procedures.
Responsibilities of the service provider
The relationship with the offshore service provider will be
detailed in a formal management agreement that sets out
principal responsibilities of the service provider as detailed
Full compliance with all local regulations relating to
trust companies including the provision of a money laundering
Maintenance of detailed accounting records
Maintenance of all statutory records
Liaison with the duly appointed auditors
Preparation and submission of tax returns and accounts to
the Administrator of Income Tax
Provision of dedicated telephone, fax and emails.
Guernsey is in the premier division of international trust
centres and has a workforce and infrastructure which has vast
experience in managing both trusts and Managed Trust Companies.
There are numerous fiduciary companies providing Managed Trust
Company services and with the new Trust Law, Guernsey is at the
forefront of international trust legislation.
There are many companies which regularly advise on the
establishment of offshore trusts and for these companies the
Managed Trust Company option can prove to be an attractive and
efficient means of maintaining their relationship with clients
without the expense of establishing their own office.
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