The Private Trust Company Act (the “PTC Act”) was passed in 2015 and is a valuable addition to Gibraltar’s trust offering, providing regulatory protection which benefits clients seeking to benefit from a higher level of control in the management of a trust and safeguards against fiduciary risk.

While, previously, it was possible for any limited company to act as a trustee, provided it was not engaged in licensable activity, the Private Trust Company Act 2015 sets out specific legislative framework within which the Private Trust Company is formally recognised and can operate.

A PTC is a company that is set up for the purpose of undertaking “Connected Trust Business” from or within Gibraltar.

A Company can voluntarily register as a PTC at the office of the Registrar of Companies (Companies House Gibraltar).

Connected Trust Business means the administration of a Trust solely for the benefit of the Settlor and/or for those persons who are known as “Designated Individuals” and also for those persons connected by family ties to the Designated Individual.

Connected Individuals

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1. For the purpose of the PTC Act, the following persons shall be considered to be a Connected Individual in relation to a Designated Individual:
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   • his/her spouse or civil partner; and
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   • the children and remoter issue of the Designated Individual and his/her spouse or civil partner.
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2. For any relationships listed in paragraph1 that may be established by blood that same relationship may also be established by adoption.

Appointing a PTC as a trustee of a trust, or group of trusts under the same family, can deliver numerous benefits especially, but not exclusively, for family offices. A PTC is, for example, easily integrated with other family entities such as an existing company or philanthropic organisation, with a view to:
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• Consolidating several family trusts under one umbrella for increased efficiency in asset management and protection;
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• Retaining more family control over a trust's investment and distribution decisions;
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• Ensuring continuity for families by resolving any trustee successor issues which may arise over the lifetime of a trust;
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• Providing more robust protection from fiduciary risk thereby easing liability concerns for individual family members named as trustees; and
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• Allowing for long-term structural and administrative flexibility, meaning that a Private Trust Company can adapt to changing family circumstances and wishes.