Ptc Establish (1)

8/3/2019 Ptc Establish (1)

1/35

Nadia J TaylorNadia J TaylorAssociateAssociate


2/35

PRIVATEPRIVATE

TRUSTTRUST

COMPANIESCOMPANIES

Establishing aEstablishing aPTC andPTC and

Acting as aActing as aRegisteredRegistered

RepresentativeRepresentative


3/35

www.higgsjo

hnso

n.com

HOW IS A PTCHOW IS A PTC

ESTABLISHED?ESTABLISHED?A PTC can be either:

an IBC; or

a Domestic company


4/35

www.higgsjo

hnso

n.com

INCORPORATINGINCORPORATING

A NEW PTCA NEW PTCThe name of a PTC cannot include wordssuch as Trustee, Trust Company or

Private Trust Company without the priorapproval of Central Bank.


5/35

www.higgsjo

hnso

n.com

1. Minimum Capital Requirement - $5,000.

2. Specific objects and purposes.3. Designated Persons or Designated Person.

4. Special Director.

5. Registered Representative.

MEMORANDUM ANDMEMORANDUM ANDARTICLES OF ASSOCIATIONARTICLES OF ASSOCIATION


6/35

www.higgsjo

hnso

n.com

Objects and Purposes of a PTC

to act as trustee only for a trust created or

to be created at the direction of aDesignated Person or Designated Persons.

MEMORANDUM ANDMEMORANDUM ANDARTICLES OF ASSOCIATIONARTICLES OF ASSOCIATION


7/35

www.higgsjo

hnso

n.com

DESIGNATEDDESIGNATED PERSON ORPERSON OR

PERSONSPERSONS A Designated Person(s) is an individual or

individuals described as such within the

Designating Instrument provided that if morethan one each Designated Person must berelated to the Designated Person sodescribed by consanguinity or some other

family relationship.


8/35

www.higgsjo

hnso

n.com

DESIGNATEDDESIGNATED PERSON ORPERSON OR

PERSONSPERSONS A Designated Person may be deceased.

The names of the Designated Person(s) willnot be a part of the memorandum and articlesof association.


9/35

www.higgsjo

hnso

n.com

SPECIALSPECIAL DIRECTORDIRECTOR

A PTC must have one Special Director with:

knowledge of trust administration; or

five years experience in a disciplinerelevant to trust administration whichincludes one or more of law, finance,commerce, investment management oraccountancy.


10/35

www.higgsjo

hnso

n.com

SPECIAL DIRECTORSPECIAL DIRECTOR

EXCEPTIONEXCEPTIONA PTC is not required to have a SpecialDirector if:

a licensee serves as a RR of the PTC.


11/35

www.higgsjo

hnso

n.com

WHAT IS A REGISTEREDWHAT IS A REGISTERED

REPRESENTATIVE (RR)REPRESENTATIVE (RR)Must be either:

A licensee of the Central Bank; or

A Financial and Corporate ServicesProvider (duly licensed under the Financialand Corporate Services Provider Act,2000).

Restricted only to the business of a

PTC.


12/35

www.higgsjo

hnso

n.com

FUNCTIONS OFFUNCTIONS OF ARRARR

A RR may provide the services of:

Secretary;

Director; or

Bahamas Agent.

Where a RR acts as a Bahamas Agent for aPTC, it must enter into a service agreement

to provide administrative services to thecompany.


13/35

www.higgsjo

hnso

n.com

REGISTEREDREGISTERED

REPRESENTATIVE (RR)REPRESENTATIVE (RR)A licensed FCSP wanting to act as a RR must:

Apply to the Central Bank for written

approval of the Governor to act as a RR;

Engage in RR services through asubsidiary company (Regulations 6(1)).


14/35

www.higgsjo

hnso

n.com

The Governor of the Central Bank may approveor deny an FCSP seeking to be a RR based

on: The fitness of the FCSP.

The business record and relevant

experience of the FCSP or its beneficialowners.


REPRESENTATIVE (RR)REPRESENTATIVE (RR)


15/35

www.higgsjo

hnso

n.com


REPRESENTATIVE (RR)REPRESENTATIVE (RR)

Whether it has sufficient human and physical

resources to act as a RR.

The best interest of the financial industry.


16/35

www.h

iggsjohn

son.c

om


REPRESENTATIVE (RR)REPRESENTATIVE (RR) A RR must be resident in The Bahamas and

maintain a minimum share capital of $50,000.

The fee payable to the Public Treasury to actas a RR of a PTC is $2,500 annually.


17/35

www.h

iggsjohn

son.c

om


REPRESENTATIVE (RR)REPRESENTATIVE (RR)A RR is the main point of contact for theCentral Bank in relation to PTCs.

A RR is required to verify the identities of:

the settlor and any person providing thefunds or assets which are subject to the

trust;


18/35

www.h

iggsjohn

son.c

om


REPRESENTATIVE (RR)REPRESENTATIVE (RR) The Designated Person;

The Protector of any trust in which the PTC isa trustee;

Vested beneficiaries of any trust of which a

PTC is a trustee.


19/35

www.h

iggsjohn

son.c

om


REPRESENTATIVE (RR)REPRESENTATIVE (RR)RR must maintain the following books andrecords at its office in The Bahamas:

Memorandum and Articles of Association;

Designating Instrument;

CV of Special Director;


20/35

www.higgsjohnson.com


REPRESENTATIVE (RR)REPRESENTATIVE (RR) Trust instruments for each trust;

A list of all the PTCs of which a RR acts;

The Form of Acknowledgement to beexecuted by the settlor of the trust (to be

produced where possible).


21/35


DESIGNATINGDESIGNATING INSTRUMENTINSTRUMENT[INSERT COMPANY NAME]

I, [DIRECTOR], hereby confirm that in relation to[INSERT COMPANY NAME] a Company[incorporated/to be incorporated] under the laws ofThe Bahamas, the Designated Person or Designated

Persons for the purposes of Section 2 of the Act shallbe: [INSERT INDIVIDUAL (S) NAME (S)].

Signed:

DIRECTOR

Acknowledged by:[INSERT COMPANY NAME]


22/35


FORM OF ACKNOWLEDGEMENT TO BEFORM OF ACKNOWLEDGEMENT TO BEEXECUTED BYSETTLOR OF TRUSTEXECUTED BYSETTLOR OF TRUST

I, [INSERT SETTLORs NAME], hereby acknowledge that inrelation to [INSERT COMPANY NAME] (the Company)a company [incorporated/to be incorporated] under thelaws of The Bahamas:

i. that the Companys directors are not required by law topossess or exhibit expertise in trust administration and,therefore, said directors may, in fact, not be possessed ofor exhibit such skill,

ii. that Company is not required by law to provide anyfidelity bond,


23/35


FORM OF ACKNOWLEDGEMENT TO BEFORM OF ACKNOWLEDGEMENT TO BEEXECUTED BYSETTLOR OF TRUSTEXECUTED BYSETTLOR OF TRUST

iii. that the capital of the Company is not required by law toexceed Five Thousand Dollars and may, therefore, beminimal; and

iv. that Company is not required by law to perform an annualaudit.

Accordingly, accepting the foregoing and fully understandingthe legal implications hereof, I hereby waive any and allrights of complaint in respect of these matters.

Signed:

SettlorAcknowledged by:


24/35


REQUIREMENT OFREQUIREMENT OF

ALICENCEALICENCE BTCRA section 3(2):

No trust company shall carry on trust businessfrom within The Bahamas whether or not suchbusiness is carried on in The Bahamas unless itis in possession of a valid licence granted by theGovernor authorising it to carry on suchbusiness.


25/35


QUALIFICATIONS OFQUALIFICATIONS OF

EXEMPTIONEXEMPTIONA PTC is exempt from the requirements ofsection 3(2) of the BTCRA if:

The PTC complies with the definition of aprivate trust company under the BTCRA asamended;

It has a single Designating Instrument;

It does not solicit trust business


26/35



EXEMPTIONEXEMPTION

Upon appointment as a RR of a PTC, a RR

has a duty to certify to the Governor of theCentral Bank that the PTC meets therequirement for exemption from section3(2) of the BTCRA either:


27/35



EXEMPTIONEXEMPTION Within six (6) months of the date of coming into

force of the Regulations; or

If a PTC is either an IBC or Domestic Companyincorporated after the date of coming into force

of the Regulations, within three 3 months of itsincorporation.


28/35


HOW DOES A RRHOW DOES A RR

CERTIFY EXEMPTION?CERTIFY EXEMPTION?

A RR certifies exemption by obtaining fromthe directors of each PTC for which it

provides services a duly completedCompliance Certificate in the form set out inthe Fourth Schedule to the Regulations.


29/35


HOW DOES A RRHOW DOES A RR

CERTIFY EXEMPTION?CERTIFY EXEMPTION? The Certificate should be accompanied by a

briefing sheet on each PTC containing thename of the settlor and a list of trusts to be

administered by the PTC.

A RR must obtain a duly completedCompliance Certificate on, or before 31st

December of each year.


30/35


COMPLIANCECOMPLIANCECERTIFICATECERTIFICATEWe, the undersigned directors (the Directors) of[COMPANY NAME], a Private Trust Companyestablished under the laws of the Commonwealth of TheBahamas pursuant to the Banks and TrustCompanies Regulation Act, 2000 (the Company)hereby declare that between [DATE] and [DATE]:

1. The Company has served only as trustee for trust ortrusts for Designated Person or DesignatedPersons or an individual or individuals who are relatedby consanguinity or other family relationships tothe Designated Person or Designated Persons and hasnot carried on any business or activity whichwas prohibited; and


31/35


COMPLIANCECOMPLIANCECERTIFICATECERTIFICATE

2. The Directors have acted honestly and in good faith witha view to the best interest of the

Company.

And we each make this solemn declarationconscientiously believing it to be true.

________________ __________________

Director Director


32/35


APPLICABLEAPPLICABLE

FEES & COSTSFEES & COSTS Establishment and Maintenance of the PTC Fees due on commencement $5,000

Annual Fee $5,000

Registered Office/ Agent $? (discretionary)

Establishment of a RRApplication to act as RR $2,500

Annual fee. $2,500


33/35


APPLICABLEAPPLICABLE

FEES & COSTSFEES & COSTS Provision of RR services Fees for acting as:

(i) secretary; (ii) director; or

(iii)Bahamas Agent. $? (discretionary)

Establishment of TrustsFees for:

(i) drafting a trust deed; and $?(ii) establishing a trust. $? (discretionary)


34/35


OTHER WAYS OFOTHER WAYS OF

ESTABLISHING APTCESTABLISHING APTC Converting an existing IBC or Domestic

Company into a PTC.

Converting a restricted licence TrustCompany into a PTC.

Converting an existing Foreign Company

into a PTC.


35/35


QUESTIONS?QUESTIONS?

Nadia J TaylorNadia J TaylorAssociateAssociate

[email protected]@higgsjohnson.com

Documents

Ptc Establish (1)