The Virgin Islands Special Trusts Act
(VISTA) came into force on 1 March 2004.
Trusts established under the Act, known as 'VISTA trusts'
are unique to the British Virgin Islands.
The VISTA regime was introduced as a solution to what is
commonly referred to as 'the prudent investor problem'.
The prudent investor problem
Trustees are required to act in the best interest of the
beneficiaries. In doing so, a trustee is required to act prudently,
and to invest the trust assets with the diligence and prudence that
a reasonable person would be expected to exercise in making an
investment of his own money.
BVI trusts are routinely used to hold the shares in a BVI
company which is itself the holding vehicle of a family business.
The family business may be involved in activities which would be
considered too risky for a prudent investor. As such, a trustee may
find himself under a legal duty to intervene in the management
decision of the directors, or even diversify out
