The Cayman government is planning to amend the Trusts Law and related regulations this year, Minister for Financial Services Tara Rivers announced.
Cayman's appeal for private client professionals is the long-standing strength of the financial services industry and the ability to attract business-based, robust commercial legislation and adherence to global regulatory standards, she said at the annual event of the local chapter of the Society of Trust and Estate Practitioners.
Last year, government passed a bill that provided the industry with greater certainty and clarity with regard to wills in cases where a testator dies outside of the Cayman Islands.
This year, the minister said, "Further legislative developments are on the horizon with enhancements to the Trusts Law, new regulations for private trust companies, which have now been passed by Cabinet, and the commencement of the Limited Liability Partnership Law and related regulations."
In his keynote address, Grand Court Justice Ian Kawaley said a consultation draft of a trust amendment bill is currently being circulated among industry practitioners.
The amendments would also confer on the court a more flexible power to vary trusts, replacing the existing requirement that an arrangement must be shown to be for the benefit of minors and unborn with the less onerous requirement of establishing "no detriment." This more "modern approach" has been taken by the British Virgin Islands and the Bahamas, Kawaley said.
Another proposal would extend the definition of a trust corporation with regard to STAR trusts to all trusts for the purpose of discharging a retiring trustee.
Measures in the Bill are expected to include a judicial power to reverse trustees' mistakes, and a more flexible power replacing the existing requirement that an arrangement must be shown to be for the benefit of minors and unborn with the less onerous requirement of establishing 'no detriment', as has been done in the Bahamas and the British Virgin Islands.
Another likely reform concerns s91 of the existing Trusts Law, concerning sectors and the exclusion of foreign law provisions.