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Private Trust Companies (PTCs)

Private Trust Companies (PTCs)

Private Trust Companies offer High Net-Worth private clients an attractive planning alternative to the traditional professionally managed trust. Fiduchi has a wealth of experience in using PTCs for High Net-Worth private clients, for wealth management structures and structured international financial transactions.

Jersey Private Trust Companies, PTCs, PTC Establishment & Administration.

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At Fiduchi we don’t apply a ‘one size fits all’ methodology, rather the contrary. Our director-led teams will assess your needs to ensure we take into consideration all your requirements and provide the bespoke service you require.

Private Trust Companies - How Fiduchi can help

We have a team specifically dedicated to establishing and administering private trust companies for international families. Fiduchi is a regulated provider of trust and company services, and therefore our experts are able to assist you in all aspects of ensuring continued compliance in the constantly changing landscape. Furthermore, as an Independent financial service provider, we are free from external pressures allowing us to be more flexible in our approach to your requirements. We can very quickly provide you with a PTC structure to meet your needs and able to collaborate with and range of trusted advisors to deliver your PTC solution.

What is a Private Trust Company (PTC)?

A PTC is a company which is incorporated for the sole purpose of acting as trustee to one or more trusts for a family group. PTCs offer families a significant degree of control and help them structure their affairs so as to allow for as much or as little participation by members as they wish. This can encourage generational participation in the family interests, and ensure that such participation is more strictly controlled. A HNW family may prefer to incorporate a PTC to act as Trustee of their family trusts rather than using a service provider’s professional trustee company.

7 reasons why a HNW family should consider using a PTC?

  1. Families can retain a significant degree of control structuring their affairs so as to allow for as much or as little participation by family members as they wish.
  2. The PTC can be used to introduce the younger generation to the family interests and values whilst keeping control of such participation. This can be of significant value when the family business is held in an underlying trust.
  3. A PTC allows a business to be retained by the family through generations without the need for diversification (which would be required by a professional trustee);
  4. Commercial decisions for a business can be made more quickly and protocol set out on the roles of individuals in the family business.
  5. A PTC can act as trustee for various family trusts, thereby allowing an understanding of the overall family wealth, and management of that wealth, in a harmonised manner.
  6. Management of the PTC lies with the board of directors; a change of directors is usually less burdensome than a change of trustee. This can assist with succession planning.
  7. PTC’s help maintain confidentiality, rather than the use of a large and highly regulated international financial institution as a trustee.

PTC Structure

In order for a PTC to be effective, care must be taken at the outset to establish the structure properly, identifying who within the structure will be responsible for what. This is important from a regulatory viewpoint, as well as from a tax and legal perspective.

In addition, where several family members are involved with the activities of a PTC, care must be taken to highlight and manage any conflicts of interest. This is something that can be addressed from the outset under the terms of the constitutional documents, for example by introducing investment committees or setting specific voting rights.

Ownership of a PTC

Ownership of the PTC is clearly a key issue for most Ultimate Beneficial Owners (UBOs). The shares in a Jersey PTC can be held in a number of ways, but tax advice must be taken in this respect particularly if there is a requirement for a UBO to divest himself of control in order to satisfy tax requirements in his home jurisdiction.

Traditionally shares in a Jersey PTC have been held via a purpose trust. A purpose trust is usually non-charitable in nature; it can be charitable but would then need to comply with stricter requirements. Where non-charitable, a Jersey purpose trust must have an enforcer. An enforcer is an individual appointed to enforce the terms of the purpose trust.

Typically, a UBO will appoint a trusted family advisor to this role. 

Board of Directors of a PTC

Aside from ownership, another core issue to consider when structuring the PTC is the composition of the board of directors. The UBO may wish to be on the board, or may want to appoint a team of trusted advisors, or he may simply wish to be able to exercise a veto over such matters. It is possible for the UBO to exercise considerable control over this aspect of a Jersey PTC, but the usual considerations must be given to the tax and privacy rules of the UBO’s home jurisdiction and those of the proposed directors. 

Control of the board can be designed into the constitutional documents of the structure at the outset, for example by requiring under the terms of the trust that the trustee is required to seek the approval of the settlor or enforcer when appointing/removing directors of the PTC. Alternatively, the articles of the PTC may include various requirements, such as an obligation on directors to abstain where there are conflicts of interest. 

Regulatory

Under the relevant Jersey legislation, any person who carries out trust company business in the Island must be registered by the Jersey Financial Services Commission. PTCs are exempt from this requirement provided that the PTC (in general terms):  

  • only provides trust company business services in respect of a specific trust or trusts (generally related to the same family); 
  • does not solicit from or provide trust company business services to the public; and
  • has its administration carried out by a person registered to carry out trust company business in Jersey, such as Fiduchi, who will also have responsibility to monitor compliance with Anti-Money Laundering regulations.

Once a Jersey PTC satisfies the requirements, it is subject to relatively light touch regulation compared both to regulated Jersey trust companies and to PTCs in some other jurisdictions. For example, a Jersey PTC:

  • does not need to seek express exemption from regulation by the JFSC (the JFSC require only a letter to notify them of the existence of the PTC); 
  • does not have to submit an annual filing or pay any annual fee over and above the usual company returns;
  • does not specifically require management by a regulated service provider.

Conclusions on why HNW Individuals should consider PTCs

PTCs offer high net-worth families an attractive planning alternative to the traditional professionally managed trust. 

The possible uses are extensive and can simultaneously involve both commercial and philanthropic objectives. A PTC can be used to consolidate the administration of several family trusts, thereby conveniently managing and preserving family wealth and allowing the settlor to actively plan both his succession and the future ownership of family assets. 

A PTC can allow families to maintain greater control over its trusts and those trusts’ underlying interests. Additionally, the PTC structure can have a dynastic influence, allowing and encouraging the introduction of different generations into the management of the family’s affairs in a meaningful but strictly controlled way.

In order for a PTC to be effective it is important that the settlor’s wishes are understood at the outset and that these are consistently communicated to the relevant members of the family and the management of the structure. Bespoke trust deeds and company articles or other governing documents are used in order that each PTC structure can be set up precisely how each client wishes. However, communicating this to families, especially after the settlor’s death, is not always straightforward. Consideration must be given to this from the beginning and one established way of creating family awareness and acceptance is to agree a family charter, which sets out the principles and intentions of the settlor at the establishment of the PTC. These charters can be as informal as a family wishes and individual families can arrange them in whatever manner they choose, thereby reducing the chances of future disputes regarding the management of the PTC.

Our online share plan platform allows for the easy administration of a large range of employee plans including: LTIPs, EMIs, CSOPs, SIPs & SAYE plans.

Key features of our online share plan platform

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Web enabled, 24/7 access to all plan information for company stakeholders

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Information updated in real-time

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Ability to view and filter all participants 

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Access to suite of pre arranged, Business Intelligence reporting

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Complete management oversight and control for company

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Ability to create and schedule your own reporting 

"Fiduchi's Online Share Plan Administration portal, has saved time, money and paper, and [it] allows us to become more efficient in the managing of our employees share awards. It's really fantastic what an impact this platform has made."

Micheal S
Head of People - Tech startup company.

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Easy Onboarding

Onboarding of your data to our online platform is easy regardless if you choose a fully-managed or self-service in-house solution. By making the switch to our platform, you can upgrade from having to manage your share plan data on complicated spreadsheets. Plus to make the process as simple as possible, our experts will guide you every step of the way and we also provide helpful guides.

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Global Compliance

For businesses who opt for our fully managed solution, our platform is able to deal with each business's unique requirements. When it comes to dealing with exact legal and regulatory issues, our platform will be able to automatically determine the actions required for each award or vesting, specific to the country in which the company operates. Therefore minimising the risks and allowing full compliance from a legal and regulatory position.

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Data Security

Our platform uses the highest standards to protect the valuable data and assets we hold on behalf of our clients. We have a team of in-house cyber security and IT professionals to protect our system and carry out security audits, due diligence, penetration testing and to oversee potential threats. We are fully regulated, accredited and certified by a range of statutory and non-statutory bodies including the US Department of Commerce’s Privacy Shield.

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Branded User Portal

Our platform can be branded to match your company's own brand, therefore becoming a professional extension of your employee benefits. You can set role-based access and let your employees and shareholders log into their own online branded share platform anytime, anywhere and see exactly what shares they have and how much they are worth. They can also easily accept grants, exercise options, calculate potential payouts and more.

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Testimonials

"THANK YOU TO OUR GUARDIANS!

I would like to extend a BIG thank you to the Fiduchi team for taking such good care of me and my business. It's reassuring to know that there are some guardian angels out there to look after us."

Founder & CEO - SUPERLUXE Events

"Thank you very much for your professional assistance (and patience) in helping us transfer our shares and assets into the new Trust. I know that it has taken longer than expected. Still, your professionalism and continued support have helped us achieve the desired outcome."

Chairman and CEO

"My sincere thanks for the assistance you have provided the advisory committee by coordinating directly with the charity to formalise an agreed donation plan."

Private Client (Charity)

"Many, many thanks for your hard work and speed at setting up our client's Private Investment Company in just 24hrs! Your flexibility and communication throughout the whole process have been appreciated, and the feedback has been tremendous......

Thank you."

Major UK Law Firm

"Thank you, everyone, for delivering this significant re-structure to our family assets and within a very tight timeframe.

Great to get this finalised!"

Mr. C - Private Client

"THANK YOU TO OUR GUARDIANS!

I would like to extend a BIG thank you to the Fiduchi team for taking such good care of me and my business. It's reassuring to know that there are some guardian angels out there to look after us."

Founder & CEO - SUPERLUXE Events

"We consider Fiduchi an important strategic partner of ours. Over the years they have proven themselves to be professional and extremely thorough. Combined with this professionalism, they are always a pleasure to deal with and we are pleased with their service levels."

Mr. P.E, Managing Director, W Ltd.

"We consider Fiduchi an important strategic partner of ours. Over the years they have proven themselves to be professional and extremely thorough. Combined with this professionalism, they are always a pleasure to deal with and we are pleased with their service levels."

Mr. P.E, Managing Director, W Ltd.

“I am very impressed with the professionalism and efficiency Fiduchi Limited demonstrated during the establishment of our employee benefit trust. They coordinated the process seamlessly and provided us with valuable advice and guidance to ensure compliance with our regulatory and legal responsibilities. Throughout my engagement with the team, I have found them to be approachable and easy to work with.”

Mr. P.B. FE Ltd.

"Thank you for helping us with the establishment of our real estate fund."

Startup Fund Manager

"Thank you so much for helping my client register their vessel with the Red Ensign Group and all the other advice and support you provided!"

Trusted advisor to Yacht Owner.

"Fiduchi's yacht team provides a first-class service! In particular with assisting us with our crew banking requirements and payroll services. Whenever we need assistance, they are just a phone call away!"

Superyacht Captain

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Relevant video(s)

Offshore Structuring for Middle East families & businesses

Fiduchi's Regional Director - Middle East Christopher Dungan and Aldahbashi Gray's Co-Managing Partner Mohammed Al Dahbashi discuss offshore structuring for MiddleEast families & businesses. Between them, the two speakers provide examples of why Middle East clients might want to use offshore structuring for their private wealth and succession planning requirements. Both discuss their experiences in helping Middle East clients and services offered by Fiduchi, including Private Client, Family Office, Corporate Services, Employee Incentive Plans, Fund Services and Yacht ownership and management solutions.

Date posted:
July 23, 2020
Business area:
Private Client

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Our experienced yacht team are here to answer any questions you may have. With a wealth of knowledge and expertise, they will be able to advise you on right solutions to meet your needs. You can rest assured that core to the Fiduchi principles are how your interests should best be met.

Call our Yachts team on: +44 1534 755155

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Find out how we can help with your employee incentive plan below

Our experienced employee services team are here to answer any questions you may have regarding all types of employee incentive plans. With a wealth of knowledge and expertise, they will be able to advise you on the best solution that meets your business needs.  

You can telephone our employee incentives team on: +44 7797 831 648 or +44 7415 918 046

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