Guernsey Finance

The Island plays host to some 150 licensed providers, ranging from large organisations to independent, boutique operations. Together they employ approximately 2,200 staff and hold more than £300bn worth of assets in trust. In addition, there are around 50 licensed individuals who can act as directors, co-trustees or trust protectors. There is substantial expertise in using the innovative modern structures that are available on the Island for the preservation of both institutional and individual/family wealth and assets.

Guernsey is growing an excellent reputation in the emerging niche market of the family office, where it can build on its track record of providing trust services for individuals and families. In addition, the Island remains a jurisdiction of choice for corporate settlors using trusts for the administration of pension schemes and employee share plans. Corporate structures are utilised to hold assets and investments of all types including residential and commercial property, intellectual property rights and yachts. Estate and inheritance planning are key elements of the Island’s wealth management offering.

In 2008 Guernsey modernised its tried and tested legislation by enacting a new Trusts Law. Some of the main changes included the introduction of Purpose Trusts; the removal of limits on the length of a trusts duration - allowing perpetual trusts; and abolishing the liability of directors of corporate trustees, particularly as a way to encourage greater use of Private Trust Companies (PTCs).

Also in 2008 a new Companies Law was introduced in parallel with a new  Company Registry. This saw the Island's system for company formation and administration move from a court-based model to a streamlined statutory process. The Registry is utilising cutting edge online technology to provide users with incorporations in 15 minutes and prices starting from £100 whilst maintaining the Island's hallmark of personalised service.

The Registry also includes the office of the Intellectual Property (IP) Registrar. IP is becoming a key driver  of new business to the Island and Guernsey will continue to strengthen its position as a centre for IP innovation as it introduces legislation for patents, biotechnological rights and new areas of IP rights.

The Island is also renowned for its robust yet pragmatic regulatory environment. It was one of the first jurisdictions to introduce an effective licensing and supervision system in relation to trust administration services, company management and ancillary services - it is the businesses that manage and provide fiduciary services that are regulated, rather than the trusts themselves.

There is also an independent office of Public Trustee with the ability to step in to act as a trustee where, amongst other cases, it is necessary or desirable to act for the purposes of preserving the trust assets or otherwise in the interests of the beneficiaries.

The local industry body representing the interests of on-Island service providers is the Guernsey Association of Trustees (GAT). There is also a Guernsey branch of the Society of Trust and Estate Practitioners (STEP), which with more than 500 members is one of the largest regional  branches.