Trust & Comany Products & Services

Question 1

What are the services provided offshore?

Answer 1

Trust & company business services

Insurance services

Investment management

Legal services

Tax compliance & planning services

*FSB is regulated activity with license & supervised by regulator

Question 2

Define Fiduciary relationship

Answer 2

Relationship founded on trust / a person with this duty has to act in the best interests of another

Question 3

Define client & entites

Answer 3

Client - refers to person usually approaches the offshore centre provider to establish a business relationship

Entities - describes legal persons (co’s) and legal arrangements (trusts)

Question 4

Define structures & service providers

Answer 4

Structures
-entities aimed at meeting needs of particular clients/ groups connect by ownership of assets

Simple- owned by trust
Complex - multilayered, span across jurisdictions, include range of entities

Service provider
-organisations/ individuals that provide offshore FSB

Question 5

Define trust company & overlying trusts / underlying companies

Answer 5

Trust Company
-organisations that conduct trust company business

Overlying trust/ underlying company
-trust & companies used together as part of clients wealth / tax planning

I.e - trust owns 100% share of company

Question 6

Trust & Company products offered offshore

Answer 6

Trusts

• legal arrangements whereby person (settlor) properly vests legal ownership of assets to another (trustee) for the benefit of another (beneficiaries)
• separation of legal ownership / lies with trustee / equitable ownership lies with benes
• no separate legal personality

Companies

• separate legal entity
• profit making
• incorporated by law
• owned by shareholders/ members
• controlled by directors
• M&As govern / set out rules & obligations / contract
• offer perpetual succession

Foundations

• similar features to Trust & company
• separate legal personality/ contract in own name
• don’t have shareholders
• trust (beneficiaries & settlor)
• foundation (council & guardian)

Partnerships

• agreement between 2 or more parties to work together to make a profit
• no separate legal personality
• variety offered offshore centres

Question 7

Outline the Trust & company services offered offshore

Answer 7

Trust & company business used to describe provision of;

• co admin
• Trust & fiduciary services
• services to foundations & partnerships

Services

Formation agent - jersey allows companies for non residents to be formed by licensed person (trust co) gives assurance to registry that CDD completed & Co not involved in sensitive activities / JSY allows reserved co/ BVI offers shelf co’s

Director / alternate

• trust companies offer individuals to act as director for client entity on behalf
• trust co or wholly owned subsidiary appointed as corporate directors / admin flexibility

Secretary
-legal requirement to appoint

Partnerships
-similar to director

Registered office
-address of co / noticed to registar (law requirement) as address legal notices sent

Company

Trustee

• trust co appointed as trustee of trust settled by non residents
• trust co admin team provide two individual directors to help decision making

Shareholder as nominee shareholder

• reg requirement to notify registry of shareholders info/ public record
• offshore shares issued to SP becomes legal shareholder/ hold shares for & on behalf of beneficial owner

Foundation council
-provision of foundations council / reg activity / provided by licensed trust & co business SP

Unregulated services
-provided by SP include : general admin, prep accounts, provide authorised sig, all in line with jurisdictions regulations & codes