The “retention and creation of jobs” will be among the benefits of a change to Bermuda’s Trust laws, the Senate heard yesterday.

One Bermuda Alliance Senator Jeff Baron, Junior Minister of National Security and Legal Affairs, said the amendment would also make the Island more competitive and help it keep and attract business.

“The amendment is designed to provide greater flexibility in regard to Trust business,” he said.

“We’re seeking to attract more Trust business, especially from emerging markets such as Asia and South America.”

Under current rules, a settlor will provide the money for a Trust and state who the beneficiaries are, who the Trustees are and how it should be set up.

Once created, the Trustees run it using those guidelines and their discretion.

In other offshore jurisdictions, such as the Cayman Islands, settlors can maintain reserved powers.

Mr Baron said the amendment to the Trusts (Special Provisions) Amendment Act 2014 would allow settlors to retain more control over a Trust in Bermuda.

“We can avoid losing Trust business to competitor jurisdictions,” he said. “We can attract settlors from emerging markets.

“The amendment will play a role in the modernising of Bermuda — the Trust law is likely to end in the retention and creation of jobs for Bermuda. It’s not a radical departure from the existing legal position.”

OBA Senator Michael Fahy, Minister of Home Affairs, emphasised that “Bermuda cannot be left behind or we will become uncompetitive very quickly”.

“It may seem like a small change but this represents a massive market in Bermuda,” he added. “These things are more important than may appear on the face of it.”

The Opposition also backed the change. Progressive Labour Party Senator Renee Ming said: “We support this amendment and understand the need for competitiveness in terms of Trusts — Trust business can improve our economy.”