Survey Reveals Leading Trust Destinations

by Jason Gorringe, Tax-News.com, London

24 March 2004

According to a recently completed survey of City lawyers, jurisdictions which have traditionally led the field as preferred locations for the establishment of trust arrangements continue to be the top choices, despite increasing regulation.

The results of the survey, sponsored by legal firm, Bailhache Labesse and published by the Legal Week news service, revealed that when recommending jurisdictions in which to establish a trust, 87% of the 100 lawyers questioned chose Jersey, 81% Guernsey, 49% Bermuda, 42% Cayman Islands, 36% New Zealand, 12% Isle of Man, 10% Singapore, 9% British Virgin Islands, 9% Mauritius and 9% others.

Asked to identify the factors that influenced their choice of jurisdiction, the respondents to the survey selected the maturity of the legal system (62%), the regulatory regime (56%) and political stability (51%) as the top three.

Although confidentiality was cited by 74% of respondents as an important concern, the survey results pointed to an increasing awareness that total confidentiality is no longer achievable.

Speaking following the release of the results, Bailhache Labesse partner, Graham Boxall observed that:

"From our perspective in Jersey, this survey is extremely encouraging since it appears to confirm the value of the various regulatory measures that have been taken in the Island in recent years."

He went on to add that:

"Many of the major offshore jurisdictions have received independent endorsement of regulation from international bodies such as the FATF and the IMF. They have influenced appropriate legislative changes and, in the case of Jersey and some other leading jurisdictions, introduced licensing for trust and company providers."

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