Trusts (Jersey) Law 1984 in Trusts & Trustees

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Trusts & Trustees, Vol. 20, No. 3, April 2014, pp. 212–218

Articles The first statute is erected on the battlefield of Hastings-Bass William J Byrne

Abstract

Jersey was safely delivered of a law On the 9th of October 2013, Her Majesty the Queen met with four of her Right Honourable Privy Counsellors—Nick Clegg, Danny Alexander, Iain Duncan Smith, and Theresa May. Amongst the business at hand for those standing in the traditional horseshoe arrangement in Buckingham Palace, was consideration of the Trusts (Amendment No. 6) (Jersey) Law 201-. By and with the advice of her

The value of assets held in Jersey trusts, or in SPV structures underneath them, has recently been estimated at »0.4 trillion

1. Jersey’s Value to Britain a report by Capital Economics Ltd (at p 44 and fig 30). ß The Author (2014). Published by Oxford University Press. All rights reserved.

doi:10.1093/tandt/ttu004 Advance Access publication 21 February 2014

Downloaded from http://tandt.oxfordjournals.org/ at OUP site access on April 17, 2014

The UK Court of Appeal decision in Pitt v Holt left other trusts jurisdictions considering their position. By the time the Supreme Court handed down their judgment on 9 May 2013, an amendment to the flagship Trusts (Jersey) Law 1984 had been discussed, decided upon, drafted and was poised for debate. On 25 October 2013, that amendment came into force. The ‘twitching corpse’ of Hastings-Bass left by the Court of Appeal may finally have been put out of its misery in the UK by their Lordships, but its soul and spirit has flown south. It now walks abroad offering its own brand of penitential pragmatics where a transfer into trust or the exercise of a trust power or discretion has failed to work out as planned. The ‘blame game’ merry-go-round may still, in the right circumstances, be effectively avoided by those in a position to take advantage of this alternative.

Privy Council, Her Majesty was, ‘pleased to approve and ratify the Act’. Contrary to commonly held belief, there is no constitutional requirement for prior consideration of Jersey and Guernsey laws by the British Parliament. Under an Order in Council made just days after Her Majesty the Queen’s accession to the throne in 1952, any law of Jersey or Guernsey, after being approved by the legislative assembly of its respective island, is required instead to be submitted for assent to a Committee of the Privy Council and, thereafter, to the Queen in Council. This is but one example of the curiosities of constitution and convention which delicately govern the relationship between the Crown Dependencies and the UK. As its epithet suggests, ‘Trusts 6’ is only the sixth amendment to the Trusts (Jersey) Law 1984 (the ‘TJL 1984’) in nearly 30 years. The TJL 1984 is, evidently, something of a treasured inheritance for the Island and a mainstay of Jersey’s financial services industry. The value of assets held in Jersey trusts, or in SPV structures underneath them, has recently been estimated at £0.4 trillion1; any jurisdiction seeking to augment legislation, which underpinned an industry of this size and significance, would be dutybound to approach the task with a certain forensic zeal.


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