Private Trust Company
- August 23, 2020
- Posted by: audrey
- Categories:
A Private Trust Company (PTC) is a limited liability company usually set up by those who want to retain a high degree of control over their assets and who are able to evaluate and assume the financial risks and economic consequences of their investments.
The PTC is established so that it acts as trustee in respect of its own assets that are settled in a trust or number of trusts, either for the benefit of a single family, or for different branches of a family or for distinct (but related) family groups.
PTCs are not regulated as fiduciaries, they either hold a GBC or an AC licence depending on their eligibility.
A company established as a PTC shall restrict its activities to that of a private trust business services and shall at all times maintain a minimum paid up capital of USD5,000.
It is a structure that involves at least three entities from the outset, with particular attention being paid to its shareholding, the role of the board and any trusts under its management.
The administration, investment management services or investment advice required in connection with the family trusts are usually outsourced by the PTC under a service agreement to licensed financial institutions and/or service providers.
A PTC is required to appoint a management company licensed by the FSC as company secretary.