Trusts (Regulation of Trust Business) Exemption Order 2002
TRUSTS (REGULATION OF TRUST BUSINESS) EXEMPTION
ORDER 2002

1989 Revision 1

BR 38/2002

TRUSTS (REGULATION OF TRUST BUSINESS) ACT 2001

2001 : 22

TRUSTS (REGULATION OF TRUST BUSINESS) EXEMPTION
ORDER 2002

In exercise of the powers conferred upon the Minister by section 10(2) of
the Trusts (Regulation of Trust Business) Act 2001, the following order is
hereby made:

Citation
1. This Order may be cited as the Trusts (Regulation of Trust
Business) Exemption Order 2002.

Interpretation
2. In this Order —

"the Act" means the Trusts (Regulation of Trust Business) Act
2001;

"professional person" means a member of a professional body;

"professional body" means a body which regulates the practice of
a profession;

"recognised professional body" means a professional body
recognised by order of the Minister pursuant to an
application made under paragraph 1 of the Schedule;

"trust records" include deeds creating a trust and any associated
documents, particulars of trust assets, trust accounts, and
resolutions of meetings of the trustees.

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ORDER 2002

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Exemption in connection with private trust business
3. (1) A trust company is exempted from the requirements of
section 9 of the Act if it is authorised to provide the services of a trustee
only to the trusts specified

(a) in its memorandum of association; or

(b) in the case of an overseas company, in its permit;

and to such other trusts as the Minister may approve from time to time
("an exempted company").

(2) An exempted company shall 

(a) within three months of the date of coming into force of
this Order; or

(b) in the case of a company which has been registered or
granted a permit under the Companies Act 1981 after
the date of coming into force of this order, within three
months of its registration or the grant to it of a permit,

certify to the Authority that it qualifies for an exemption by virtue of the
restriction specified in subparagraph (1) and give to the Authority
particulars of the nature and scope of its trust business.

(3) An exempted company shall notify the Authority of any
change in the nature and scope of the trust business that has been
approved by the Minister as soon as practicable after approval.

(4) In subparagraph (1) "permit" means a permit granted under
section 134 of the Companies Act 1981 to an overseas company .

Exemption in connection with members of recognised professional
bodies
4. (1) A trustee who is a member of a recognised professional
body is exempted from the requirements of section 9 of the Act if he
holds a certificate issued for the purposes of this Order by a recognised
professional body.

(2) The Schedule has effect with regard to recognising
professional bodies.

Exemption where licensed co-trustee administers the trust
5. A trustee is exempted from the requirements of section 9 of the
Act if he is a co-trustee of a trust and at least one other co-trustee is a
licensed trustee.

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ORDER 2002

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Exemption where trust records are held by licensed trustee
6. (1) A trustee is exempted from the requirements of section 9 of
the Act if

(a) he is a professional person; and

(b) he appoints a specified licensed trust company to
maintain trust records of the trust of which he is a
trustee.

(2) The following licensed trust companies are specified for the
purposes of subparagraph (1)(b)

(a) a company owned (whether directly or indirectly) by an
undertaking of which the professional person is a
director, partner or employee;

(b) a company in respect of which the professional person is
a director or controller; or

(c) a company forming part of a settlement of which the
professional person is a beneficiary.

(3) In subparagraph (2) "settlement" includes every disposition
or arrangement under which property is held in trust.

Other exemptions
7. (1) A bare trustee is exempted from the requirements of section
9 of the Act.

(2) A trustee of the following trusts is exempted from the
requirements of section 9 of the Act

(a) a pension plan registered under the National Pension
Scheme (Occupational Pensions) Act 1998;

(b) a pension trust fund registered under the Pension Trust
Fund Act 1966; and

(c) a collective investment scheme approved by the
Authority under the Bermuda Monetary Authority
(Collective Investment Scheme Classification)
Regulations 1998.

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THE SCHEDULE

(Regulation 4 (2))

PART I: Recognition of a professional body

Application for recognition

1. (1) A professional body may apply to the Minister for an order
declaring it to be a recognised professional body for the purposes of this
Order.

(2) Any such application 

(a) shall be made in such manner as the Minister may
direct; and

(b) shall be accompanied with such information as he may
reasonably require for the purpose of determining the
application; and

(c) shall be in such form or verified in such manner as he
may specify.

(3) Every application shall be accompanied with a copy of the
applicant's rules and of any guidance issued by the applicant which is
intended to have continuing effect.

(4) The Minister may, on application duly made in accordance
with this paragraph and after being furnished with all such information
as he may require, make or refuse to make an order ("a recognition
order") declaring the applicant to be a recognised professional body.

(5) The Minister after consulting with the Authority may make
a recognition order if it appears to him from the information furnished by
the body making the application and having regard to any other
information in his possession that the requirements of Part II of the
Schedule are satisfied as respects that body.

(6) Where the Minister refuses an application for a recognition
order, he shall give the applicant a written notice to that effect, stating
the reasons for the refusal.

Revocation of recognition

2. (1) A recognition order may be revoked by a further order made
by the Minister if at any time it appears to him that any requirement of
Part II of the Schedule is not satisfied in the case of the body to which
the recognition order relates.

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(2) An order revoking a recognition shall state the date on
which it takes effect and that date shall not be earlier than two months
after the day on which the revocation order is made, and may contain
such transitional provisions as the Minister thinks necessary or
expedient.

(3) Before revoking a recognition order, the Minister shall give
written notice of his intention to do so to the recognised body and shall
state the reasons for which the Minister proposes to act and give
particulars of the rights conferred by subparagraph (4).

(4) A body on which notice is served under subparagraph (3)
may within one month from the date of service of the notice make written
representations to the Minister and the Minister shall have regard to
such representations in determining whether to revoke the recognition
order.

(5) A recognition order may be revoked at the request or with
the consent of the professional body and any such order shall not be
subject to the requirements of subparagraphs (3) and (4).

Part II : Requirements for recognition of a professional body

Statutory status

3. The body must regulate the practice of a profession in the
exercise of statutory powers.

Certification

4. The body must have rules, practices and arrangements for
securing that no person can be certified by the body for the purposes of
this Order unless the following conditions are satisfied

(a) the certified person must be an individual who is a
member of the body; and

(b) his main business must be the practice of the profession
regulated by the certifying body.

Safeguards for clients

5. (1) The body must have rules regulating the carrying on of
trust business by persons certified by it which , in the Minister's opinion,
afford an adequate level of protection for clients.

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(2) In determining in any case whether an adequate level of
protection is afforded for clients, regard shall be had to the nature of the
trust business carried on by persons certified by the body, the kinds of
clients involved and the effectiveness of the body's arrangement for
enforcing compliance.

Monitoring and enforcement

6. (1) The body must have adequate arrangements and resources
for the effective monitoring of the continued compliance by persons
certified by it with the conditions mentioned in paragraph 4 of this
Schedule and rules, practices, arrangements for the withdrawal or
suspension of certification in the event of any one of those conditions
ceasing to be satisfied.

(2) The body must have adequate arrangements and resources
for the effective monitoring and enforcement of compliance by persons
certified by it with the rules of the body relating to the carrying out of
trust business.

(3) The arrangements for enforcement must include provision
for the withdrawal or suspension of certification.

Investigation of complaints

7. The body must have effective arrangements for the investigation
of complaints relating to the carrying on by persons certified by it of trust
business in respect of which they are subject to its rules.

Promotion and maintenance of standards

8. The body must be able and willing to promote and maintain high
standards of integrity and fair dealing in the carrying on of trust
business and to co-operate by the sharing of information and otherwise,
with the Minister, the Authority and any other person having
responsibility for the supervision and regulation of trust business or
other financial services.

Made this 9th day of August , 2002

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ORDER 2002

1989 Revision 7

Minister of Finance