Due to the recently implemented Bahamian Executive Entity Act, financial service providers have the ability to act in the capacity of Trustee, Protector, Investment Advisor and or Appointor for existing and new trusts under consideration.  Section 2. of the Bahamas Executive Entity Act provides for the functions following:

• Any powers and duties of an executive, administrative, supervisory, fiduciary and office holding nature including but not limited to the powers and duties of:-

(I)        an enforcer, protector, trustee, investment advisor and holder of any other office                of any trust

(II)       the holder of any office of any legal person

• The ownership, management, and holding of:-

(I)        executive entity assets; and

(II)       trust assets

The use of an Executive Entity is most apparent when clients have decided to transfer trusteeship from one service provider to another and an interim trustee is required to facilitate the transfer.

If a trustee is removed or retired by Deed of Removal/Retirement and Appointment, the Executive Entity is able to be appointed as interim trustee.  This allows the Settlor/Donor the ability to discern and appoint a successor trustee at their convenience.

If the Executive Entity is also a Corporate Service Provider, arguably the Executive Entity is possible of providing the same level of service offered by trust companies and where feasible, maintain the same investments and  bank accounts that were previously managed by the successor trustee.