The Private Trust Companies Regulations (“the Regulations”) came in to force in August 2008. The Regulations allow for the registration of a Private Trust Company (“PTC”) with the Cayman Islands Monetary Authority (“CIMA”) where the PTC is incorporated in the Cayman Islands and conducts no trust business other than connected trust business. Connected trust business is defined as trust business in respect of trusts of which there is one or more than one contributor to the funds of which are all, in relation to each other, connected persons. Connected persons include those in the same family as provided in the Regulations and those in the same group of companies.
Prior to the Regulations coming into force, one would have been required to obtain a restricted trust licence from CIMA (an option which remains) for conducting such business.
The Regulations were amended on 1 February 2019 and include the amendments outlined below:
- The initial registration fee and annual registration fee have both been reduced to CI$3,500 (US$4,268.29);
- CIMA is entitled at all reasonable times, to inspect all documents and records held or which should be held at the registered office of the PTC (e.g. up to date copies of the trust deed or other documents recording the terms of the trust and the names and addresses of the trustees, contributors, and beneficiaries, and all financial and transactional records of the company and its connected trust business);
- The annual declaration to be filed with CIMA requires names and addresses of members to be filed;
- A surcharge (not exceeding 1/12 of the annual registration fee for every month or part of a month that the fee remains unpaid) will be incurred for any failure to pay the annual registration fee on or before 31 January of any year;
- CIMA must be notified within 30 days of any change in the information provided to it for the registration of the company;
- Any company registering as a PTC with CIMA on or after the commencement of the amending regulations or changing its directors after such date, must have a natural person appointed as a director;
- CIMA may refuse or cancel the registration of a PTC if it has reasonable grounds to believe that a company or any principal of the company (e.g. a shareholder or director) is breaching any applicable laws or that the PTC is not being operated by fit and proper persons; and
- A PTC surrendering its registration shall pay CIMA CI$300 (US$365.85)