The Journal sits down with Robin Garnham, of the newly launched Cayman Trust Limited, to hear why he believes the time is right to launch a new trustee services provider in Cayman.
In July 2008, Cayman Trust Limited was able to offer its trustee services to the market, having obtained an Unrestricted Trust Licence from the Cayman Islands Monetary Authority, with a solid line up of well known industry professionals at the helm (the Directors of Cayman Trust are Andrew Galloway, Ralph Woodford, Greg Link and Robin Garnham.)
Robin Garnham says that a niche exists currently for an independent provider of trustee services and confirms, “We consider that our services will appeal to those who would prefer to completely separate key roles within a trust structure in order to ensure that conflicts of interest are eradicated. This philosophy was supported when I recently visited some of the largest New York law firms who certainly welcomed our addition to the selection of Cayman service providers.”
A primary market for Cayman Trust will be to work with other local and international providers in order to introduce independence to existing structures. The directors at Cayman Trust believe that certain independence should feature within a structure, as Garnham confirms, “It is important that independence exists: whether it be to appoint a third party protector to a discretionary trust in certain cases, a third party enforcer to a star trust, or to have an independent trustee to hold the founder shares of a hedge fund where the fund administrator and directors are provided by the same party.”
Cayman Trust does not provide banking, investment management or legal services, directly or indirectly, and can therefore provide that independence without any concern of potentially conflicting interests of other business lines. Garnham says he believes that the demand for this type of service is only going to grow as the demand for independence increases. Cayman Trust, he says, would be happy to provide that independence and welcomes those enquiries.
The company also offers a complete range of fiduciary services, including acting as trustee of a variety of different types of trusts, the provision of company management and other general corporate services.
Garnham confirms that a clear focus of Cayman Trust is to cater to the needs of highly sophisticated clients who, due to their often complex structures, require a trustee to be closely involved and to possess a detailed knowledge of the individuals concerned, together with a clear understanding of the agreed objectives.
He states, “Procedures and risk controls have been established since inception to apply to such structures which provide additional comfort to clients. Similarly Cayman Trust is also able to create and act for private trust companies which can be used for the ultra high net worth client. Cayman Trust provides a highly personalised service which can be paralleled with that of a traditional client attorney relationship. Once again this gives clients greater comfort and confidence that we will always provide an appropriate and fully considered response to whatever requires their attention.”
When reviewing new business opportunities, Cayman Trust has adopted a process which analyses each potential case in depth to establish and understand the detailed needs of that client, so that a tailored solution can be put in place which reflects that greater knowledge.
Garnham explains, “All cases are different and potentially have appetites for different classes of asset and risk. It is therefore for Cayman Trust to consider how it may control the risk associated with, for example, an art work portfolio or a private yacht or jet and implement controls to enable the business to be effectively managed. It is for this reason that many providers avoid such asset classes whilst Cayman Trust has the expertise to manage such assets. The general philosophy of Cayman Trust is to work closely with its clients and dedicate greater levels of time to them. This would include regular visits to discuss current objectives, and whether they have been satisfied, whilst ensuring those going forward are correctly aligned.”
Cayman Trust is a regulated entity of the Cayman Islands Monetary Authority and has satisfied the regulator in all respects including its internal processes, the professional ability of its management and the necessary professional indemnity insurance in place.
Operating from its offices in Zephyr House on Mary Street, the company plans to relocate at the end of the year to new class A hurricane rated offices currently under construction.
From an office administration perspective, Cayman Trust prides itself on creating a paperless office atmosphere, created to improve efficiency and turnaround times. Cayman Trust also benefits from daily offshore data backup, a failover email system and standby critical hardware to allow quick replacement in the event of hardware failure. Garnham concludes, “It is vital that these elements of a business continuity plan are at your finger tips if you want to operate a cutting edge business.”