The TCOBA provides for the licensing of two types of trust licence. The first is a general trust licence. Such a licence allows the licensee to offer trustee services to the public in general and is granted if the Commission is satisfied that the applicant is a fit and proper person and is qualified to carry on trust business.
A general trust licence allows the licensee to extend the licence to wholly owned subsidiaries, engaged in trust activities. Minimum paid up capital of US$250,000 or the equivalent in another currency is required. Licensees are required to seek the approval of the Commission for any change of director and change of ownership and beneficial ownership and to submit annual audited financial statements.
The second type of trust licence is a restricted trust licence, which limits the licensee to administering a limited number of trusts, the names of the settlors of which are required to be listed in the application or in any amendment to an existing restricted trust licence. There is no set minimum capital requirement for a restricted trust licensee. The Commission sets the capital requirement based on the circumstances of the application.
The underlying legislation regarding trusts is the Trusts Act 1994, which seeks to modernize trust law with respect to security, confidentiality and flexibility, while preserving best features of common law trust interpretation. The Trusts Act allows for the optional registration of trusts.
Applicable fees and application forms to undertake offshore banking and trust activities are detailed in the Trust Companies and Offshore Banking Regulations and the Trust Companies and Offshore Banking (Fees) Regulations together with the Guidelines on Restricted Trust Companies and the Licensing Guidelines for Offshore Banking.
