A PTC that is incorporated and administered in Jersey is exempt from the onerous licensing requirements under the Financial Services (Jersey) Law 1998. The exemption is contained in the Financial Services (Trust Company Business (Exemptions)) (Jersey) Order 2000 (Order).
The conditions that a PTC must satisfy in order to rely on the exemption are contained in Article 4 of the Order and include inter alia the requirement that the purpose of the PTC is solely to provide trust company business services in respect of a specific trust or trusts. In addition, the PTC must not solicit from or provide trust company business services to the public and the administration of the PTC must be carried out by a registered and licensed trust company business in Jersey.
Key advantages of using Jersey PTC’s
- Client control – quite often the board of the PTC is comprised of the client and his/her advisors or there is a mixed board with the Jersey licenced trust business providing independent directors
- A PTC can be a trustee of a single trust or a series of linked trusts
- A PTC can be used for wealth planning purposes as well as in corporate structuring for example for acquisition of Private Equity or Real Estate investments
- Shares in the PTC can be held directly by the client or by a charitable trust or a foundation as an orphan vehicle
- The Articles of Association of the PTC can be drafted in ways that allow the family or future generations to participate in the management of the trust assets
- Simplified regulatory regime if requirements of Article 4 of the Order met
- Must retain Jersey-based licensed administrator
- Allows flexibility and retention of control by client
- PTC can also act as a member of the council of a Jersey foundation