2.2.7. Providing Trust Services
2.2.7.1. General description
Providing Trust Services is listed in section 6 of Schedule 1 of GEN and means:
(a) the provision of services with respect to the creation of an express trust;
(b) arranging for any Person to act as a trustee in respect of any express trust;
(c) acting as trustee in respect of an express trust; or
(d) acting as protector or enforcer in respect of an express trust.
Definition of an express trust is provided in the AIFC Trust Regulations and mean a trust created with the Settlor’s express intent declared in writing or a written declaration of trust by the trustee.
A Person who is a Trustee does not carry on Dealing in Investments as Principal, Managing Investments and Providing Custody in circumstances where it is acting as a trustee.
An Authorised Firm authorised to carry on the regulated activity of Providing Trust Services is subject to prudential supervision and must comply with AIFC Prudential Rules for Investment Firms.
Currency regulation
Currency transactions will be performed via AIFC Banks if processed in only foreign currency, and via second-tier banks in any currency. For more details of transactional implications see Chapter 4 of PERG.
The table below illustrates currency regulation implications if services are offered to residents of Kazakhstan that are not AIFC Participants.
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Are you planning to offer your services to legal entities or natural persons – residents of Kazakhstan that are not AIFC Participants? |
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Yes:
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Your services will be subject to the AIFC Rules on Currency Regulation: |
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Name of allowed activity: |
Trust services. |
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Relevant reference to Schedule 2 to the AIFC Rules on Currency Regulation: |
3.6 in the list of financial services. |
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Type of currency: |
Any currency |
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Transaction: |
Via AIFC Banks: only foreign currency Via second-tier banks: any currency |
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Currency reporting: |
No specific reporting for a financial service. Transactional reporting may be applicable (see Chapter 4 of PERG for more details).
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No: |
Subrule 3.3.2 of AIFC Rules on Currency Regulation applies. |
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For more details see Chapter 4 of PERG.
2.2.7.2. Exclusions
Providing generic advice on the desirability of using a trust does not amount to Providing Trust Services.
A Person does not carry on Providing Trust Services by way of business where it is:
(a) acting as enforcer or protector; or
(b) where it is arranging for a Person to act as trustee,
in respect of less than three (3) trusts.
A law firm, notary firm, or other independent legal business or an accounting firm, audit firm, or insolvency firm does not provide Trust Services where it only:
(a) arranges for a Person to act as trustee in respect of an express trust; or
(b) provides services with respect to the creation of an express trust; provided that:
(i) the provision of such services is solely incidental to the practice of law or accounting as the case may be; and
(ii) the DNFBP is not holding itself out as Providing Trust Services.
Acting as trustee, protector or enforcer are not activities incidental to the practice of law or accounting and require a Licence.