The Bermuda Trusts (Regulation of Trust Business) Act 2001

The Trusts (Regulation of Trust Business) Act 2001 (the "Act") has been in operation in Bermuda since 25 January 2002.

The Act introduces a framework for the way trusts are managed in Bermuda and makes provision for licensing and regulating persons carrying on trust business. It provides that a company, partnership or individual (a "trustee") shall not carry on trust business in or from within Bermuda without the appropriate licence. Trust business is defined in the Act as the provision of the services of a trustee as a business, trade, profession or vocation.

The Act replaced the Trust Companies Act 1991 which was considered by the Bermuda Government to be out-of-date as it did not afford sufficient powers of intervention to the regulators of the trust industry, the Bermuda Monetary Authority ("BMA") and the Ministry of Finance. Instead, the Act now ensures that sufficient records of trust business are maintained to demonstrate internationally that