TURKS & CAICOS Law and Practice Contributed by: David Stewart, Thomas Bucknall and Gareth Bathgate, Coriats Trust Company Limited
6.4 Fiduciary Investment There is no special regime governing the asset allo - cation or other investment management methodol - ogy that applies to fiduciaries in the Turks and Caicos Islands. There is a statutory regime for a special pur - pose trust to hold and run an active business. 7. Citizenship and Residency 7.1 Requirements for Domicile, Residency and Citizenship Applicants for temporary or permanent residence must satisfy a range of criteria and be of good char - acter. There are various bases on which temporary or permanent residency by investment can be available. 7.2 Expeditious Citizenship Permanent residency can lead to a discretionary grant of citizenship, but it is a long haul. 8. Planning for Minors, Adults with Disabilities and Elders 8.1 Special Planning Mechanisms There are no special planning mechanisms for minors or adults with disabilities in the Turks and Caicos Islands, but this requirement could be covered by a properly drafted trust deed. 8.2 Appointment of a Guardian Appointing a guardian, conservator or similar party requires a court proceeding and ongoing supervision by the court, but in limited circumstances only, and the Turks and Caicos Islands do not have a lasting power of attorney statute. 8.3 Elder Law There is scope to apply to court for the appointment of a guardian if a person is mentally incapacitated, but no other specific measures.
through court proceedings, though internal and pri - vate mediation is encouraged, and works particularly well where a trustee has an understanding of trust litigation. 5.2 Mechanism for Compensation Following the English law approach to the assessment and quantification of loss and damage, TCI courts generally avoid the award of punitive or multiples of damages, tending instead to a conservative approach to assessing provable direct losses caused as a result of any finding that a party has breached a contract or a duty of care. 6. Roles and Responsibilities of Fiduciaries 6.1 Prevalence of Corporate Fiduciaries Corporate trustees offering fiduciary services for reward owe extensive common law and statutory duties, and they must be regulated and licensed by the Turks and Caicos Financial Services Commission (TCIFSC). Such entities need to carry high levels of professional indemnity insurance, have a full annual audit by an approved auditor, and submit to frequent inspections and reviews by the TCIFSC. 6.2 Fiduciary Liabilities Following English law authority, it is very difficult for a claimant to seek to pierce the veil of a corporation and to affix individuals with liability for that corpora - tion’s wrongdoing, but it is theoretically possible if the claimant can establish that the corporation had no real separate legal identity, and was just acting as the alter ego of an individual. Similarly, it is open to a claimant to argue that a trust is a sham, and that in reality the so-called trust is merely an extension of an individual. Good-quality structures and management by a good trustee will help defeat any such claims. Fiduciaries can contractually protect themselves from claims, but never for fraud. 6.3 Fiduciary Regulation There are no specific laws or regulations concerning asset allocation or investment management, but there are common law duties of care to manage assets to the standard of a reasonably competent manager.
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