The Bahamas Parliament has passed amendments to the **Purpose Trust Act 2004** as well as to the **Foundations Act, 2004**.
In submitting the amendment bills to Parliament, Financial Services Minister Vincent Peet indicated that these were designed to provide enhanced clarity and to ensure both products remain attractive and competitive.
The introduction of the Purpose Trust Act in 2004 was seen as a critical step towards the modernisation exercise of the legislative platform of the country’s financial services industry. The Bahamas has specialised in private client business and the utilisation of various types of trusts accounts for a large volume of business. At the time the Purpose Trusts Act was passed in Parliament, Government noted that as one of the premier international financial centres in the world, *“The Bahamas must maintain a modern statutory framework to govern trust business in this country.”*
The recent amendment to the Purpose Trust Act clarifies that the capital or income of Purpose Trusts may be disposed (a) to persons who may be of any number; (b) for purposes which may be of any number or kind, charitable or non-charitable; or (c) to any combination of persons or purposes as mentioned in (a) and (b). This amendment ensures that the Bahamian Purpose Trust is an excellent alternative, particularly with the new Private Trust Company legislation brought into force at the end of December, 2006.
The amendments to the Foundations Act will be covered in the next edition of BFSB News.