Guidance on Private Trust Companies

1 Guidance on Private Trust Companies September 2025 Regulation of Fiduciaries, Administration Businesses and Company Directors, etc. (Bailiwick of Guernsey) Law, 2020

2 Private Trust Companies

1. Introduction This note provides guidance on the regulatory requirements for Private Trust Companies (“PTCs”) and sets out the Guernsey Financial Services Commission’s (the “Commission”) expectations of PTCs and the licensed fiduciaries which administer PTCs. A PTC is a company that acts as a trustee to a specific trust or a group of connected trusts. These are usually a trust or trusts set up for one family, or unit trusts which do not fall under the remit of the Protection of Investors (Bailiwick of Guernsey) Law, 2020.
2. Limited permission (discretionary exemption) under section 3(1)(ac) of the Regulation of Fiduciaries, Administration Businesses and Company Directors, etc. (Bailiwick of Guernsey) Law, 2020 (“the Fiduciaries Law”) Acting as trustee is a regulated activity under the Fiduciaries Law. It is the Commission’s view that PTCs fall within the scope of the Fiduciaries Law and should either apply for a licence under section 6 of the Law, or for permission under section 3(1)(ac) of the Law to operate without a licence (“limited permission”). The application process permits the Commission to conduct vetting, complementary to that performed by the administering licensee, to ensure that our records of individuals and entities associated with a PTC are accurate, that such persons are of appropriate standing, and that reputational risk to the Bailiwick is managed accordingly. This process helps to mitigate the inherent money laundering, financing of terrorism and proliferation financing risks in the sector as a whole and place the jurisdiction in a stronger position in respect of ongoing international scrutiny. An application for a limited permission can be made using the Commission’s Application Portal (https://applications.gfsc.gg/) and should be accompanied by the applicable fee (or fees if a request for permission to use a name1 is also being made). In granting a permission to a PTC, the Commission will consider whether the following criteria are met: • The PTC will only act as a trustee to a specific trust or a group of connected trusts with common interest, such as trusts for one family. • The PTC will not advertise or market its services to the public in any way. • The PTC will be administered by a company licensed under the Fiduciaries Law. • The licensed fiduciary which will administer the PTC confirms to the Commission that it will retain sufficient knowledge and information about the PTC’s ownership and control structure and about its activities to be satisfied that: a) the PTC is effectively administered and governed; and b) the PTC complies with relevant laws and regulatory requirements. 1 The Financial Services Business (Enforcement Powers) (Bailiwick of Guernsey) Law, 2020 (the “Enforcement Powers Law”) stipulates that no person other than a licensed fiduciary shall use any name which indicates or may reasonably be understood to indicate that such person is a licensed fiduciary. However, the Enforcement Powers Law provides that a PTC may apply to the Commission for permission to use certain names, including “trust” or “trustee”. The PTC can apply for such permission at the same time as making the application for a discretionary exemption. For the avoidance of doubt, the term “PTC” may be used without having to obtain a permission.

3 This may be achieved by the licensed fiduciary demonstrating an appropriate level of oversight of the PTC through, for example, any or a combination of:

• provision of a director on the board of the PTC.
• provision of a company secretary to the PTC.
• provision of an authorised signatory of the PTC. In accordance with its obligations under Schedule 3 of the Proceeds of Crime Law the licensed fiduciary must ensure that the PTC is subject to a level of monitoring that is commensurate with the Money Laundering, Terrorist Financing and Proliferation Financing risks the PTC’s activities pose. As the licensed fiduciary is facilitating the carrying on of a regulated fiduciary activity by the PTC, the Commission would regard this as a higher risk activity which should be subject to enhanced monitoring and oversight. The granting of a limited permission will depend on the facts and circumstances of each individual case. For example, the Commission will also need to be satisfied that it has no concerns in respect of the individuals, parties or activities associated with the PTC. As a matter of general policy, the Commission will apply a standard condition on the PTC requiring it to be administered within the AML/CFT/CPF controls of the licensed fiduciary which administers it. Additionally, a permission would be granted with a time limit, generally 3 years. This can be renewed prior to the expiration date. Generally, no new application is required if there is no change to the information submitted at the time of applying for the permission. Details on the renewal process are provided within the letter issued by the Commission when the permission is granted. Application for a fiduciary licence There may be cases where a PTC may prefer to seek a fiduciary licence. This may be because a PTC considers that it has sufficient expertise as well as an appropriate AML/CFT/CPF framework in place not to require an existing licensee to assist it in administering its business. Holding a fiduciary licence may provide comfort to the beneficiary family group and third parties such as bankers or insurance companies that the PTC is subject to the supervision of the Commission. However, as a licensee is normally permitted to undertake a full range of regulated activities, it may be appropriate for a PTC’s licence to be issued subject to conditions that limit the activities that may be carried on. For further information on the criteria, procedures and fees required to apply for a fiduciary licence please refer to the following Commission website pages. https://www.gfsc.gg/authorisations/fiduciary-applications/full-fiduciary-licence-corporate https://www.gfsc.gg/industry-sectors/fiduciary/fees Private Trust Foundation (“PTF”) The Commission is open to consider applications for the grant of a limited permission for a PTF. In considering applications for limited permission from PTFs, the Commission will apply similar criteria to those applying to applications from PTCs. An application can be made using the Commission’s Application Portal (https://applications.gfsc.gg/)

4 3. Licensed Fiduciary Record-keeping By virtue of section 26(1) of the Fiduciaries Law, the Commission may request a licensed fiduciary to provide the Commission with information reasonably required for the Commission to perform its functions. In light of this, a licensed fiduciary which administers a PTC or a PTF should ensure that the records of the PTC or PTF it administers, including each trust’s activities, any beneficial ownership information regarding the PTC, its directors/ councillors and its controllers, or any information regarding the settlor, beneficiaries and any protector (if relevant) of the trust or trusts for which it acts, are available for inspection by the Commission upon request.