Setting up a Managed Trust Company

A Managed Trust Company must obtain prior approval from the GFSC and a licence to conduct trust company business.  An application must be submitted to the GFSC to enable the GFSC to satisfy itself that the Managed Trust Company will ensure the maintenance of Guernsey’s reputation and that there will be sufficient safeguards over the underlying assets.

The key elements of the application include:

  • The proposed shareholders and directors of the Managed Trust Company
  • The name of the licensed Guernsey trust company which will manage the business of the Managed Trust Company
  • A detailed business plan with financial forecasts
  • Formal management services agreement

It is always recommended that a meeting is held with the GFSC at an early stage to enable the GFSC to understand the rationale for the Managed Trust Company and to enable it to meet with the shareholders.

Note that the Managed Trust Company will need to appoint an auditor and financial statements will need to be prepared and submitted to the GFSC on an annual basis.

The owner of the Managed Trust Company will need to ensure the company is adequately capitalised at all times.

The owner of the Managed Trust Company will normally be prevented from having sole executive responsibility and the managing licensee will normally need to provide a majority of directors to the board of the Managed Trust Company.

Contact Warner Koller or David Preston