* Jersey Trust Law Amendments Now In ForceProposed amendments to Jersey’s Trusts Law have been approved by the Privy Council and became law on 27th October 2006. This follows a "root and branch" review of the Trusts (Jersey) Law 1984 undertaken last year.
The amendments are designed to maintain and enhance Jersey’s position as one of the world’s leading international trust jurisdictions by ensuring that its trusts legislation responds to developments in other jurisdictions and remains internationally competitive.
Among the amendments is the introduction of settlor-reserved powers, which will provide greater statutory certainty regarding the level of control and influence a settlor may exercise, in appropriate circumstances, over the ongoing administration of assets placed into trust. The powers that may be reserved by the settlor will include the power to appoint and remove trustees, to amend or revoke the terms of the trust and to appoint or remove an investment manager or investment adviser
The amendments will also permit a trustee to delegate any of his or her trusts or powers if permitted by the terms of the trust.
Other amendments include conflict of law provisions which will mean that the validity of a trust governed by Jersey law will not be affected by any rights conferred on anyone under a foreign law, and a proposal that will remove the existing automatic ‘personal guarantor’ provisions for directors of corporate trustees, thereby making it more attractive to establish private trust companies in Jersey.
Trust professionals from Jersey will highlight these enhancements during a seminar arranged in London next month. Organised by Jersey Finance, the promotional arm for the Island’s Finance Industry, in association with the Jersey Association of Trust Companies, the seminar entitled ‘Jersey – First Amongst Equals’ takes place at the Museum of London on Tuesday, 21st November. The event is designed for London trust lawyers, accountants and other financial service professionals involved in the provision of Private Client Wealth Management services.
Beverley Le Cuirot, Director of Marketing of Jersey Finance, said:
“The changes brought in under the Amendment No. 4 Law are the most significant since the Trusts (Jersey) Law came into force in 1984. The purpose is to clarify and enhance the existing Law, and to bring greater certainty to key questions concerning the validity of Jersey Trusts and the powers that may be retained by the settlor of a Jersey Trust.
“In addition, the Amendment will remove a number of provisions in the principal Law which were perceived by some practitioners as limiting the attractiveness of Jersey as a centre for very high net worth private family trust business.
“These and other important changes in the amended Law will be presented at our Trusts Seminar in London next month.”