Abstract: The last three months have seen significant statutory developments in the Cayman Islands relating to trusts, in particular in the regulation of trustees. In August 2008, the Banks and Trust Companies Law was amended to enable controlled subsidiaries (Cayman Islands companies wholly owned by a Cayman Islands licensed trust company) to carry on trust business connected with the trust business of the licensee and within the scope of the licensee's own trust licence. The effect of this is that it is now possible for a licensed trust company to provide trusteeships which are carried out by controlled subsidiaries of the licensed trust company and not by itself. The Mutual Funds Law of the Cayman Islands was also amended to enable such controlled subsidiaries to be the trustee of unit trusts registered as mutual funds. The expansion of the use of the controlled subsidiaries offers some interesting possibilities in the private trust arena. The use of controlled subsidiaries may be attractive to an institutional trustee for risk management purposes. A controlled subsidiary could be structured so that it would itself have no other assets and no other clients who would be concerned with any litigation unlike the institutional trustee itself.
Publication Year: 2008
Publication Date: 2008-12-01
Language: en
Type: article
Indexed In: ['crossref']
Access and Citation
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot