JTscene An independent view from Jersey Trust Company
Issue Three
C O N T E N T S
Welcome...
...to the third edition of JTscene. As the dust is that each client receives Our Private Wealth Practice
now settling following March’s UK budget I a style of service which PAGE 2
thought it would be an opportune moment for us meets their expectations
The Private Trust Company
to focus on developments within our Private and allows us to match the
PAGE 3
Wealth Division. The foundation of our business right team with the nature of the
has been the provision of private client services work being carried out. Our Charitable Trust
over 20 years. Throughout this period the world PAGE 3
With regards to the wider world there can be no
of international finance has changed
doubt that economic challenges lie ahead. It is UK Budget 2008
significantly and consequently, what defines a
difficult at this stage to predict when the current PAGE 4
private client relationship has broadened.
downturn will level out and how far we have to
At JTC we have made an important distinction Open for business in Geneva
go. Building on existing relationships with our
between our private clients who have instructed PAGE 4
intermediaries is where our focus lies in riding
us to manage their private wealth, and those
out this storm. We hope you enjoy Issue Three. JTC in the British Virgin Islands
who have engaged us to provide services of a
PAGE 5
more corporate nature. This distinction ensures Nigel Le Quesne Group Managing Director
Summer Charity Activities
PAGE 6
www.jerseytrustco.com
www.jerseytrustco.com
Our Private Wealth Practice
Some would say that the term ‘private wealth’ is challenges in existing structures. For us, this is
quite broad. We would probably agree. Yet the where the real added value lies.
differentiating factor for us lies in how we
service our private wealth clients. Terms such Our clients have undoubtedly become more
as ‘flexible’, ‘confidential’ and ‘tailored solutions’ sophisticated in their knowledge and
are all commonly expressed by service providers, understanding of the principles of international
and rightly so, as these principles are the structuring. Our client base includes individuals
foundations for building a professional who have an entrepreneurial trait which, by International events often threaten to take their
relationship with a client. implication, creates an expectation for us to toll on the private wealth industry whether it be
administer the assets of a structure in a proactive rising oil prices, the credit crunch or decisions
At JTC we have a dedicated private wealth fashion. Throughout the years we have taken by the UK Government in their most recent
department made up of teams led by developed a sound understanding of the budget. At JTC we firmly believe we are equipped
professionally qualified managers. We provide sensitive issues which can arise when working to deal with these issues and with the opening of
formation and administration services for with private wealth clients and we are always our office in Geneva we are now better placed to
traditional vehicles such as trusts, companies and driven to find solutions to the problems which provide a more comprehensive service to the
partnerships of which the nature of the underlying can occur. Recently we have seen an increase private wealth industry.
assets varies enormously. This variety allows us in the use of private trust company structures
to draw on our previous experiences in creating which for some have introduced an element of Nigel Syvret Group Director
new structures or when faced with new family control.
The Private Trust Company Proposed Trust Law
amendments
Following amendments to Jersey’s trust London law firm and established a PTC A working party has been established to
legislation (Trusts (Amendment No. 4) (Jersey) structure initially used for acquiring a consider further enhancements to the Trusts
Law 2006) we have seen an increase in the residential property in the Capital and valued at (Jersey) Law 1984. This will be the fifth
number of high net worth individuals and over £20million, for the client’s occupation. We amendment to the Law and expected changes
families seeking to use a Private Trust Company were responsible for the formation of the PTC relate to the enforcement of foreign claims
(or “PTC” as they are often referred to) as a and underlying trust structure and also played and judgements in Jersey and the
more dynamic and flexible vehicle to manage an active role in relation to the financing and introduction of a statutory indemnity in favour
their assets and businesses. PTCs can allow completion on the purchase of the property. of retiring trustees. With regards to the latter,
either a settlor, their family or advisers a lien would be created over the trust fund
Linda Cunningham Senior Manager
(or a combination of these parties) to sit on which would cover any claims made after the
the board of directors of the PTC allowing trustee’s retirement.
them to take an active role in the control
and management of the affairs of the
underlying entities.
Through the knowledge and skills developed by
running our own trust company for many years,
we are able to draw on our experiences when
forming and administering PTCs. Recently, JTC
acted for an ultra high net worth client of a
Our Charitable Trust
We act as trustee to a number of trusts with funding is also raised via other sources such as Comic Relief, Breast Cancer Care, Jersey
charitable beneficiaries. As a result of this, collections from staff for ‘Dress Down Day’ on the Cheshire Home, Alzheimer’s Society,
coupled with a desire to contribute as an last Friday of each month. Meningitis Trust, British Red Cross and ICROSS.
organisation to the community, JTC created The
Since the formation of the Monogram Charitable It is our intention to continue to support
Monogram Charitable Trust in 2001. The purpose
Trust, JTC has supported a broad range of these charities and indeed other charities
of this trust is to periodically benefit charities of
charities including Jersey Hospice Care, in the future.
our choice and it is funded primarily from profits
Robin Ward General Hospital (Children),
derived from JTC’s business activities. Additional
UK Budget 2008 Jersey Foundations
They say there is no smoke without fire, yet in Jersey is in the process of drafting a new
the case of the ‘UK non-dom’ saga, perhaps, on Foundations Law. This law, which is scheduled
this occasion, we got away with just smoke. to be introduced by the end of this year, will
allow the creation of Jersey foundations
It seems not so long ago that we were digesting
and the redomiciliation of existing foundations
the UK Government’s Pre-Budget Report and
to Jersey.
the alarm bells started to ring, particularly in
Working closely with tax advisers we
respect of our UK resident and non-domiciled One of the key advantages of foundations is
successfully restructured and rebased asset
clients. Those bells became louder still during that they are perceived to be less complex than
values where necessary and inevitably, a
subsequent months when, for a number of trusts yet avoid the formality of companies,
handful of structures were unwound. In the
reasons, the media grasped hold of the issue thus making them a more attractive asset
final analysis of ‘what could have been’ it
and suggested that the end was nigh. At JTC a holding vehicle for certain clients.
would appear that common sense thankfully
plan was called for. We created a ‘UK Tax Team’
prevailed and the resulting impact was The general view in the trust industry is that the
made up of directors and management who
manageable for clients, advisers and ability to use Jersey foundations is a positive
set about reviewing our client base to assess
international finance centres. move which will open up new markets to the
the potential impact the many issues might
Island and encourage new business, in
have for our clients. Meetings were scheduled Alan Baird Business Development Manager
particular, from common law jurisdictions.
on a weekly basis to discuss how events
were unfolding.
Strengthening
the Team
Open for business in Geneva In a strategic move to strengthen our private
wealth division we made a senior appointment
JTC is pleased to announce it has opened an We believe the combination of having in the latter part of 2007 and welcomed Neil
office in Geneva, Switzerland to provide a full complementary offices in both Switzerland Wakeling as a Director. Neil has 30 years
range of private client, corporate and fund and the BVI adds an extra dimension to our experience working with private clients based
services. Our aim is to focus on maintaining the offering and will further enhance our ability to in the UK and throughout Europe. He also
high levels of service and confidentiality for serve the planning requirements of our clients played an important part in managing the
which we are well known. and intermediaries from around the globe. affairs of our clients during the turbulent times
leading up to the announcement of the UK
budget earlier this year.
JTC in the British Managed Trust
Virgin Islands Companies
and innovative corporate legislation which has JTC has significant
been recognised on a global basis. Whilst this experience in
legislation has undoubtedly been the driving the formation and
force in making the BVI one of the most operation of
successful offshore corporate domiciles, other managed trust companies.
services are not far behind. In particular, trust
The principal advantages of creating a managed
legislation has been revised over the last five
trust company are:-
years and the VISTA trust has become a much
talked about and popular product. BVI Mutual • the significant costs of establishing and running
Funds legislation has also ensured that the a stand alone office are avoided
territory is home to a growing number of funds
For those of you who were not already aware, • qualified and experienced directors and staff
and it is now the second largest domicile in the
we have had an office in the British Virgin from JTC will attend to all management and
world for hedge funds.
Islands (or the “BVI”) since 2004. JTC BVI offers administration requirements
a full range of services from company
• the implementation of JTC’s risk management
formations, registered office and agent services
systems and procedures
through to the more bespoke trust, company
and fund administration services. Claire Detailed criteria must be followed in order to
Abrehart has recently joined the JTC team as establish one of these arrangements. Our
General Manager and has overall responsibility regulatory body, the Jersey Financial Services
for the running of this office. Claire has lived Commission, needs to ascertain that the applicant
and worked in the BVI since 1994. is capable of being licensed on the basis that it
would qualify as a ‘stand alone’ operation, even
The BVI is the world’s largest corporate
though the proposed trust company would be
domicile, being home to over 750,000
managed by JTC. The applicant must be an
companies, which in part is down to the flexible Claire Abrehart General Manager - JTC BVI
organisation of good repute and the managed
trust company will be expected to meet statutory
financial resource requirements.
Neil Wakeling Director
C O N T A C T
Summer Charity Activities Head Office
Jersey Trust Company
Elizabeth House
9 Castle Street
St Helier
Jersey
Channel Islands
We are proud to say that many individuals workshops and accommodation at a vocational
who work at JTC are gearing up for their own school for orphaned children. Tel: +44 (0) 1534 700 000
summer charitable activities both locally Fax: +44 (0) 1534 700 007
Carole Le Mottee will raise money for Jersey
and abroad. Email: jtc@jerseytrustco.com
Hospice by completing a 25 mile walk having
www.jerseytrustco.com
Allie Audrain and Hayley Le Roux have taken also taken part in the Jersey Half Marathon
part in the Race for Life in Jersey raising money which raised funds to support the Jersey Sports
Regulated by the Jersey Financial Services Commission.
for Cancer Research. Association for the Disabled.
Jean Huish has committed to a Dayna Whittingham completed a gruelling 50
Girlguiding/Scouts international camp in the mile cycle challenge and raised money for
If you wish to talk through any of the
UK where she will join volunteer staff in Jersey Hospice.
featured articles in greater detail or you
providing leadership to Scouts and Guides from
You will no doubt join us in wishing them all the want to learn more about the services
all over the world in a variety of activities.
best in their summer endeavours. that JTC can offer, please contact our
Abi Stewart is running in the Jersey Marathon, Business Development Manager,
which benefits Headway and will take part in Alan Baird.
The Great North Coast Challenge, a 20 mile cliff
Alan’s contact details are:
walk in Jersey which raises money for African
Tel: +44 (0) 1534 700 129
school children.
Fax: +44 (0) 1534 700 007
Catherine Howarth will join the Jersey Overseas Email: a.baird@jerseytrustco.com
Aid Commission on a trip to Uganda to build