Changes To Private Trust Company Regime

In 2007 the Banks and Trust Companies (Private Trust Companies) Regulations ("the Act") introduced a light touch regulatory regime for private trust companies in The Bahamas. Effective December, 17th 2012, the regulations to the Act were amended by the Banks and Trust Companies (Private Trust Companies) (Amendment) Regulations 2012. The changes are discussed below ("The Regulation Amendments"):

• The Regulation Amendments allow for private trust companies to be limited by shares OR by guarantee, with a minimum share capital or guarantee of five thousand dollars. Previously, only companies limited by shares could qualify as private trust companies. This change can obviate the need for a holding structure for the shares of a private trust company such as a purpose trust or a foundation, potentially simplifying trust structures and reducing costs.