Trusts (Regulation of Trust Business) Exemption Order 2002

Summary

This Bermuda Ministerial order exempts certain categories of trustees and trust companies from the trust business licensing requirement in section 9 of the Trusts (Regulation of Trust Business) Act 2001. It sets out who qualifies for exemption and the notification and annual declaration duties that exempted persons must meet to keep their exempt status.

• Private trust companies: A trust company that only provides trustee services to trusts specified in its memorandum of association or overseas permit (an exempted company) is exempt from licensing, but must notify the Bermuda Monetary Authority of its qualification, give particulars of its trust business, notify changes, and file an annual declaration.
• Members of recognised professional bodies: A trustee who is a member of a professional body recognised by the Minister and who holds a certificate issued under this Order is exempt from licensing.
• Co-trustee arrangements: A trustee acting as co-trustee alongside at least one licensed trustee is exempt.
• Records held by a licensed trustee: A professional person acting as trustee is exempt if he appoints a specified licensed trust company (one connected to him as director, controller, employee or beneficiary) to maintain the trust's records.
• Other exemptions: Bare trustees, and trustees of registered pension plans, registered pension trust funds, and authorised or exempted investment funds, are exempt from licensing.
• Recognition of professional bodies: The Schedule sets out the process for a professional body to apply to the Minister for recognition, the requirements it must meet (statutory status, certification rules, client safeguards, monitoring and enforcement, complaints handling, promotion of standards), and the process for revoking recognition.

The Order remains in force with several amendments since 2002; the record-retention provision (paragraph 8) has been revoked. Exempted entities must maintain ongoing compliance with the notification and annual declaration requirements to retain their exemption from licensing.

Key obligations

• An exempted trust company must notify the Authority in writing, within three months of this Order coming into force (or within three months of its registration or grant of permit if later), that it qualifies for exemption, giving particulars of the nature and scope of its trust business.
• An exempted trust company must notify the Authority in writing of any change in the nature and scope of its trust business approved by the Minister, as soon as practicable after approval.
• An exempted trust company must, on or before 31 March in every year, file a declaration with the Authority confirming it continues to qualify for exemption, in the form and with the information the Authority determines.
• A professional body seeking recognition must apply to the Minister in the manner he directs, accompanied by the required information, its rules, and any guidance intended to have continuing effect.
• A recognised professional body subject to a proposed revocation notice may make written representations to the Minister within one month of service of the notice.
• A revocation order affecting a recognised professional body must state an effective date no earlier than two months after the order is made.

Applies to

trust companies, trustees, professional persons who are trustees, recognised professional bodies, co-trustees, licensed trustees

Deadlines

• within three months of the date of coming into force of this Order (or within three months of registration/permit grant if later): Deadline for an exempted trust company to notify the Authority that it qualifies for exemption and provide particulars of its trust business.
• on or before 31 March in every year: Deadline for an exempted trust company to file its annual declaration confirming continued qualification for exemption.
• within one month from the date of service of the notice: Period within which a recognised professional body may make written representations after receiving notice of proposed revocation of recognition.
• not earlier than two months after the day the revocation order is made: Minimum notice period before a revocation of a professional body's recognition order can take effect.

Related documents

• This document amends Trusts (Regulation of Trust Business) Act 2001
• This document is made under Trusts (Regulation of Trust Business) Act 2001