CF_Mag_2015_web-V2

20 Cayman. Moving finance forward.
of its role as trustee may be
bespoke. This may not be the
case if an institutional trustee is
appointed which may not have
a detailed knowledge of the
family’s affairs or the ability to
coordinate effectively the trust’s
administration with the family
and its family office or advisers.
There are two categories of PTCs
in the Cayman Islands: (1) Licensed
PTCs and (2) Registered PTCs
established under the Private Trust
Company Regulations (2008).
Registered PTCs are more lightly
regulated and are not required to
obtain a Restricted Trust Licence
from CIMA. This is the most
common form of PTC in the
Cayman Islands, suitable for most
clients’ purposes. Occasionally,
a client will wish to establish a
PTC with the benefit of a full
Restricted Licence; this type of
PTC is subject to direct regulatory
oversight by CIMA.
PRIVATE TRUST
COMPANIES
IN THE CAYMAN ISLANDS
By Robert Lindley
More and more, ultra high net
worth families are looking at the
flexibility and economic benefits of
establishing their own private trust
companies (PTCs) to serve as trustee
of one or more of their family
trusts. To be established in the
Cayman Islands, a PTC is required
to be regulated or registered by
the Cayman Islands Monetary
Authority (CIMA).
PTCs are a good option for very
wealthy families who wish to retain
a high degree of confidentiality
or who may want to retain
some control over the trust’s
administration. Also, some settlors,
particularly those who may be
resident in civil law jurisdictions
and not familiar with trusts and
the role of trustees, may prefer to
use a PTC in the trust structure,
appointing family members on to
the board of directors of the PTC.
A PTC may be tailored to reflect the
settlor’s wishes and the scope
A Registered PTC must maintain
its registered office at a company
which holds a trust licence under
the Banks and Trust Companies
Law, that is at a licensed Cayman
Islands trust company.
A Registered PTC may be
incorporated as either an Ordinary
or an Exempted Company depending
on the client’s requirements. An
Exempted Company is most
commonly used for private trust
companies. The advantages of an
Exempted Company are as follows:
• the Company may receive a
renewable guarantee from the
Government that it will not
be taxed for 20 years after
incorporation should the laws
of the Cayman Islands be
changed to impose tax (and
there are no indications that
this is likely);
• it is permitted shares of no par
value;
• the name of the PTC need not
include the word “Limited”
or “Ltd.”.