The Cayman government plans to amend the trust law and related regulations this year, Financial Services Minister Tara Rivers said.
Cayman’s appeal to private client professionals is the long-standing strength of the financial services industry and the ability to attract strong, business-based trade legislation and adherence to global regulatory standards, he said. she said at the annual event of the local chapter of the Society of Trusts and Estates Practitioners.
Last year, the government passed a bill that provided the industry with greater certainty and clarity regarding wills in cases where a testator dies outside the Cayman Islands.
This year, the Minister said: âFurther legislative developments are on the horizon with improvements to the Trust Act, new regulations for private trust companies, which have now been passed by Cabinet, and the ‘Entry into force of the Law on Limited Liability Companies and related regulations. “
In his opening speech, Grand Court Judge Ian Kawaley said that a consultation draft for a trust amendment bill is currently being circulated among industry practitioners.
The amendments would also give the court more flexible power to amend trusts, replacing the current requirement that an arrangement be shown to be for the benefit of minors and unborn with the less onerous requirement to establish “without prejudice”. This more “modern” approach has been taken by the British Virgin Islands and the Bahamas, Kawaley said.
Another proposal would extend the definition of a trust company with respect to STAR trusts to all trusts for the purpose of discharging a retiring trustee.
The bill’s measures are expected to include a judiciary power to override fiduciary errors, and a more flexible power replacing the existing requirement that an arrangement be shown to be for the benefit of minors and unborn children by the less onerous requirement to establish âno detrimentâ, as has been done in the Bahamas and the British Virgin Islands.
Another probable reform concerns article 91 of the law on trusts in force, concerning the sectors and the exclusion of the provisions of foreign law.