Private Client Regulatory Compliance: How JTC is Supporting Private Clients with Regulatory Compliance and Risk

Although regulatory change tends to be gradual, expectations from regulators and the wider industry evolve much more quickly. This can be challenging for private clients, high-net-worth individuals, families and international organisations managing assets across multiple countries in an environment of global regulatory change and multi-jurisdictional compliance.

This article highlights how effective risk management and compliance is fundamental to the success and sustainability of our business, particularly given the highly regulated environment, in which we operate globally. At JTC, we aim to help clients manage these challenges by building long-term partnerships based on trust, transparency and expert advice.

Our goal is to protect clients from regulatory risks, support private wealth protection and help secure their wealth during times of change and plan for the future.

Digitalisation, Data and Regulatory Compliance for New Technologies

As private clients begin to diversify into alternative assets and crypto*, robust risk management and compliance frameworks are critical to stay compliant with regulations and reduce potential risks and vulnerabilities.

The integration of technology and AI must be accompanied by strong governance and the careful selection of data sources to support regulatory engagement and future risk prediction.

ESG Reporting and Sustainability Requirements

Global regulators are increasingly focused on transparency, disclosure and sustainability. The requirements for credible ESG (Environmental, Social, Governance) reporting and sustainability practices are expanding in both scope and depth, and enforcement against ‘greenwashing’ is strengthening.

JTC guides clients through these evolving frameworks to ensure meaningful ESG integration, authentic reporting as well as the prevention of reputational risk. Our Sustainability & Impact team offers expert guidance to help clients navigate requirements, sharing their regulatory knowledge and offering practical support.

Supporting US Clients with Cross-Border Trust Structures and Multi-Jurisdictional Compliance

The current US trust tax regime coupled with premier jurisdictions for personal trusts in the United States, especially in Delaware, South Dakota, and Wyoming, which offer a combination of modern trust laws, tax advantages, and flexible structures, have fuelled the growth of fiduciary structures in these jurisdictions.  Additionally, these premier trust situs jurisdictions have created new and highly attractive choices for clients with cross-border trust structures and international interests

Tax treatment hinges on nuanced classifications – domestic, foreign, grantor, non-grantor – while certain states, like Wyoming, South Dakota and Delaware offer compelling advantages.

Matt Tobin, Co-Regional Head – JTC Private Capital Services – USA comments:

“With the receipt of a Wyoming Trust Charter, JTC is now the only independent, non-bank-owned trust company operating across all three specialist US trust jurisdictions. Wyoming’s modern trust laws, strong asset protection regime and business-friendly environment make it a natural addition to JTC’s US offering. Our dedicated teams assist clients in optimising their trust structures while adhering to the regulatory requirements of the jurisdiction and beyond.”

JTC does not provide tax advice and we always recommend seeking independent tax advice.

Enhancing Private Client Risk Management and Compliance Frameworks

JTC’s specialist teams combine global best practices with local insights to support private client regulatory compliance. By keeping track of new rules, we help clients stay compliant and manage complex regulations in different countries.

Horizon scanning for upcoming regulations and active participation in consultations enables us to anticipate and adapt to evolving standards. This forward-looking approach lowers risk and allows clients to find new opportunities, whether they are expanding globally or restructuring their operations.

Alia Haskouri, Director – Head of JTC UAE comments:

“As an example, when the DIFC strengthened its regulatory framework for foundations to align with the UAE’s commitments to the Financial Action Task Force, we seamlessly updated our reporting requirements for our private clients with existing or new foundations, ensuring privacy and asset protection alongside absolute adherence to enhanced anti-money laundering and reporting standards.”

Responding to Changing Anti-Money Laundering and Finance Industry Regulations

Recent developments such as the creation of the European Anti-Money Laundering Authority (AMLA) mark a transformative shift in global regulatory change.

JTC’s clients expect more support than ever, navigating harmonised standards, enhancing internal AML/CFT frameworks and adapting to emerging criminal methodologies.

Matthias Belz, Managing Director – Switzerland, and Regional Head of Continental Europe comments:

“With private clients establishing trust structures with EU connections, we ensure that transparency on ownership and asset sources is robust and continuously maintained. We want our clients to know that we are dedicated to acting on their behalf and that we are committed to finding the right solutions that fully adhere to all regulations. We proactively anticipate future changes, ensuring they are always prepared for what lies ahead.”

How JTC Supports Private Client Regulatory Compliance Through Global Regulatory Change

JTC is deeply committed to meeting regulatory expectations while operating within a well-defined risk appetite. Our shared ownership culture is a key contributor in supporting the group’s approach to risk, fostering collective responsibility and ownership throughout the organisation, with risk metrics forming a core part of the performance measurement process.

We have a global network of experts within the Risk and Compliance team, who help the wider business navigate reporting, strengthen private client regulatory compliance and mitigate risks. Everyone has a stake in the company’s success; awareness and adherence to regulatory developments play an integral role in our client relationships.

As a trusted partner, we expertly guide our clients through complex, multi-jurisdictional compliance, enabling sustainable growth and giving them confidence that we are acting in their best interests in an ever-changing regulatory landscape.

*BNY Pershing Wealth Trends in Alternatives: Optimising Opportunities report 2024

IMPORTANT INFORMATION: The content of this article is intended for general information purposes only. It does not constitute, should not be interpreted as constituting and cannot be relied upon as providing (i) legal, investment or tax advice or any other form of professional advice, (ii) an offer to sell, a solicitation of an offer to buy, or a recommendation of any service or any other product or service regardless of whether such security, product or service is referenced in this article. JTC has sought to ensure that the information provided in the article is adequate, accurate and complete as at the time of publication but offers no assertion or warranty as to its adequacy, accuracy or completeness either at the time of publication or thereafter. No responsibility or liability will be accepted for any losses resulting from reliance placed upon the content of this article.

For full details of those JTC Group entities that carry on regulated business and certain other JTC Group entities, please visit our website: www.jtcgroup.com/legal-and-regulatory.

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