Gibraltar: Trust Management

In this Section:

- Gibraltar Business Environment
- Gibraltar Professionl Services
- Gibraltar Banking and Financial Sertvices
- Gibraltar Telecommunications
- Gibraltar Internet and E-Commerce Facilities
- Gibraltar Residence and Property
- Gibraltar the Labour Market

Gibraltar Trust Management

Trust management has been a significant activity for Gibraltar for more than fifty years. Originally most trust business emanated from rich UK individuals and was tax-related, but asset protection trusts have become important in recent years, with a much more diverse clientele.

Gibraltar trust legislation is reasonably up-to-date, and although purpose trusts have not yet been implemented, the issue is on the government's radar, with a consultation on proposals put forward by the Society of Trust and Estate Practitioners (STEP) for the introduction of such legislation published in May 2006. Many Gibraltar legal firms and banks have trust management departments.

Gibraltar's asset protection trust legislation is unique, as it falls within the provisions of the bankruptcy laws, rather than falling within the ambit of fraudulent conveyancing laws. In order for a creditor to commence an action in Gibraltar, where the asset protection trust legislation is part of the bankruptcy law, the only direct action which can be commenced is a bankruptcy proceeding; the standard of intent to defraud that must be met is much narrower and generally more difficult for the creditor to satisfy.

Accounting and legal professionals are able to offer trust management without separate registration, but other persons or firms must obtain licenses for trust management from the Financial Services Commission.