Guernsey innovation produces the Risk Purpose Trust
Guernsey today announces the launch of the Risk Purpose Trust (RPT), a new mechanism allowing corporates to fund effectively for foreseen and unforeseen expenses and business risks.
The Risk Purpose Trust was developed on Guernsey by the Robus Group, a Guernsey based leading provider of insurance management and corporate services , Marlborough Trust, a Guernsey based independent Trust company and Richard Gale, an independent consultant after a 40 year career in the fields of insurance broking and captive management.
Guernsey was responsible for the Protected Cell Company (PCC) in 1997 and the launching of the RPT underlines Guernsey’s place in the international Finance and Fiduciary marketplace. The PCC as a product has become standard in the international financial market and it is expected that the RPT will follow this path.
Richard Gale explains how the Risk Purpose Trust concept developed, “I developed the RPT model after my 20 years in captive management. My aim was to solve the imperfections inherent with a Captive Insurer which had become so apparent over the years. What resulted was a product which, while I feel is successful in my initial goal, has morphed into a much broader solution to the budgeting for expenses of corporates. What’s surprising is how simple the model of the RPT is, what’s exciting is how well it can solve so many issues.”
The varied uses of the RPT range from budgeting assistance for gratuity payments, incentive payments or sports bonuses; provision for the future repair costs or replacement costs (ie foreseen expenses); rental guarantees for landlords of large property portfolios; pension shortfalls, and the support and provision for unforeseen risks of corporates generally, from the traditionally insurable to the noninsurable.
Nick Hannah, MD of Marlborough Trust explains, “The Risk Purpose Trust is borne out of a first class Fiduciary and Financial industry here in Guernsey. The development of this innovation is a testament to the expertise and experience that can be found on this island.”
Chris Le Conte, MD of the Robus Group, added, “We are excited about this new innovation for Guernsey, this could potentially change the way corporates view their budget and risk management. We have no doubt that this latest move for Guernsey will only help to cement us as a financial domicile of choice
throughout the world.”
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