A new suite of Trust legislation was enacted in the Turks and Caicos Islands (TCI) on September 15, 2016, replacing the Trusts Ordinance 1990 and The Trustees Licensing Ordinance 1992. The new suite of legislation includes:
- Trusts Ordinance 2016
- Trust Companies (Licensing and Supervision) Ordinance 2016
- Trust Companies (Regulations) 2016
- Trust Companies Code 2016
Regulation of Trust Companies
Pursuant to section 4 of the Financial Services Commission Ordinance, Turks and Caicos Islands Financial Services Commission“(the Commission”), responsible for the supervision and regulation of financial services businesses in the TCI. In addition, section 8 of the Trust Companies (Licensing and Supervision) Ordinance 2016 gives the Commission the authority to regulate the trust industry in the TCI.
Licensing of Trustees and Application Process
The Trust Companies (Licensing and Supervision) Ordinance 2016 provides for restricted and unrestricted licences to be granted.
Restricted licences are issued subject to the provision that the trustee only acts on behalf of a named trust or trusts. Unrestricted licensees are not subject to this provision.
All applications for licensing should be submitted to the Commission. Applications should follow the criteria set out in Trust Companies Code 2016 and the Commission’s Trust License Application form.
Applicants must satisfy the Commission that they or their management are fit and proper in all respects to act as a trustee.
Main Licensing Conditions
- Capital Requirement – fully paid-up share capital of $250K
- Statutory Restricted Deposits - $100k
- Business plan
Personnel who qualify under the ‘Fit and Proper’ Test Guideline
Main Filing Requirements
A trust licensee must submit to the Commission:
- Audited Financial Statements;
- Auditor’s Report and Management Letter
- Annual Directors’ certificate;
- Semi-annual Prudential Returns;
- Annual compliance report;
- Internal Audit reports;
- Evidence of professional indemnity insurance
Trustees Fee Schedule
The full details of the Trustees Fees can be found in Schedule 2 ofthe Trust Companies Regulations 2016, but for ease of reference a summary is shown below.
- Unrestricted Trust Company $3,000
- Restricted Trust Company$1,000
Annual Licence Fee
On or before the 31st day of March in each year after the grant of the license and during its subsistence:
Small trust companies (gross revenue less than $2,000,000)
Medium size trust companies (gross revenue greater than $2,000,000 but less than $5,000,000)
Large trust companies (gross revenue equal to or greater than $5,000,000)
- Restricted Trust Company $1,500
*If the applicant is a wholly owned subsidiary of a licenced trust company, the fee payable on application shall be one-fifth of the fee otherwise payable. If a licenced trustee is a wholly owned subsidiary of another licenced trustee, the annual fee, including the proportion payable on grant of the licence, shall be one-tenth of the fee otherwise payable.
*When a licence is first granted, the annual fee payable for the initial year of the company's operations shall be the relevant annual fee indicated above, pro-rated from the month in which the licence is granted to the following 31st March.
Trust Law Advisory Committee
A Trust Law Advisory Committee (TLAC) has been established pursuant to section 59 of the Trust Companies (Licensing and Supervision) Ordinance 2016. The TLAC, consisting of members of the Turks and Caicos Islands Association of Licensed Trustees and the Commission, was created to facilitate collaboration and regular dialogue in an effort to keep the Trust Law and Regulation of the Islands under regular review.
For further information, please contact the Bank and Trust department at email@example.com