Private trust companies in Maltese legislation : an overview

Abstract

The aim of this thesis is to present the reader with a detailed perspective on the newly introduced law on Trustees of Family Trusts. The new law has not created a new type of trust. However, it presents an opportunity for a family to distance itself from the individual and professional trustee. It affords the family with an opportunity to form and own its own company to act as trustee for its family trust. This thesis sets out to analyse the introduction into Maltese legislation, together with a review of materials on how family trusts and private trust companies may be utilized. Chapter 1 consists of research conducted on legislation of foreign jurisdictions: some of which have adopted the Private Trust Company into their legislation, and others which have not, leaving the area unregulated but with a widespread practice of the concept. Chapter 2 begins with an analysis of the options prior to the introduction of Trustees of Family Trusts, by discussing the Private Trustee and the Professional Trustee. Moreover, Article 43B which relates to Trustees of Family Trusts is analysed, together with the MFSA‘s Rules for Trustees of Family Trusts. An appraisal and commentary on such legislation and regulation is dealt with in this Chapter. Chapter 3 sets aside the Law and the Regulations and focuses primarily on the adequacy of a family trust for families of high net worth. This Chapter examines each party in this form of trust relationship, and the interaction between them. It examines also the possibilities of ownership of the Private Trust Company and the effect on its management and control.