The Economic Development Committee said that the changes were ‘designed to maintain and enhance Guernsey’s position as a jurisdiction of choice for the domicile of trusts’.
The island’s fiduciary sector comprises about 150 firms and employs more than 1,600 people, making it the largest employing sub-sector of the island’s finance industry.
‘It makes a significant contribution to the local economy, both directly in terms of employment, revenue and community engagement, but also indirectly in terms of services provided to the sector and its staff,’ said the committee.
Trusts came within the scope of regulation in 1989 and that law was comprehensively updated by a working party in 2005.
The law was updated in 2007 and the committee said that it had ‘stood the test of time well’ and contributed to the ongoing success of the sector.
A sub-committee of the Guernsey Bar has now undertaken another comprehensive review of the Trusts Law, local jurisprudence and developments in other relevant jurisdictions and Economic Development, through its finance sector development team, has worked with the trusts law sub-committee and the law officers in developing the proposals for reform.
The proposals also take account of feedback from practitioners and developments in other jurisdictions, including changes agreed in Jersey only last month, in seeking to ensure that Guernsey remains a jurisdiction of choice in a highly competitive market for international trust services.
Changes include more selective choice on whether court hearings relating to trusts need to be held in open court.
The States should debate the proposals within the next couple of months.
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