Bill No. 269 proposes introducing a fiducie under Monegasque law — a legal structure currently absent from the Principality’s legislative framework. It draws on mechanisms familiar in French law, while adapting them to the Monegasque context.
The fiducie is not a trust
Unlike the trust, which is rooted in Anglo-Saxon legal tradition and is only partially recognised in Monaco through cross-border mechanisms, the fiducie is a civil law instrument. It was formalised in France by the law of 19 February 2007 within a strict legal framework, mainly for asset management and security purposes (fiducie-sûreté).
A fiducie is based on a contract whereby a settlor (constituant) temporarily transfers an asset to a fiduciary (fiduciaire), who administers it for a defined purpose for the benefit of a third party or the settlor themselves. This transfer takes place within a segregated estate (patrimoine d’affectation) that is distinct from the fiduciary’s personal assets.
A previous legislative attempt was left unfinished
In 2010, the first legislative attempt (Bill No. 197) to introduce the fiducie in Monaco failed. However, it failed due to limited understanding of the mechanism, fiscal concerns and fears of opacity and misuse.
A long-awaited reform, but with a fiscal debate ahead
The current 2025 initiative arises in a very different context: Monegasque professionals now understand the fiducie as it is used in France, where the instrument has become stabilised legally and fiscally. In France, the fiducie-sûreté benefits from a fiscal neutrality regime, which avoids double taxation where no real economic benefit is transferred.
Therefore, it is crucial for Monaco’s future legal framework to quickly clarify the applicable tax treatment. If the fiducie-sûreté were to be treated as a taxable transfer of ownership, it would lose all practical relevance, thereby undermining the very objective of the reform. The central issue is not the fiducie itself, but how it interacts with transfer taxes, capital gains tax and inheritance tax.
Concrete use cases to consider
Experience in France provides valuable insights into the practical and efficient use of the two main types of fiducie.
The fiducie-sûreté is a widely used tool in complex financing transactions. For instance, it enables a lender to secure a loan in an LBO deal by holding the shares of the target company in fiducie until the loan is repaid. It is also used in corporate restructuring cases to protect new investors or secure post-bankruptcy financing. Real estate portfolios can be refinanced through fiducie-sûreté, and strategic assets (e.g. shares or patents) can be temporarily transferred to a fiduciary as collateral in shareholder agreements.
The fiducie-gestion enables asset management to be outsourced while maintaining clear contractual objectives. Business owners or families can use it to entrust the management of securities, portfolios or real estate to professionals such as banks or asset managers. It can also be used to structure executive compensation plans, organise endowments for philanthropic projects or manage pooled investments on behalf of multiple beneficiaries. Using a fiducie ensures legal separation and high transparency in these operations.
These use cases confirm that the fiducie is not merely theoretical — it meets real needs in finance, business and asset management. However, it must rely on a secure and coherent legal and tax regime to function properly.
Involving experienced professionals in the legislative process is essential
It is also essential that the list of eligible fiduciaries in Monaco is not limited to banks and regulated professions. Trust and corporate service providers (TCSPs), who are heavily supervised and experienced in managing complex asset structures, should also be considered as eligible fiduciaries. Their operational expertise is a significant advantage.
Likewise, AMPA, which unites qualified professionals in trust and fiduciary services, could play an active role in consultations with the National Council and the Government. Given its extensive experience and rigorous standards, AMPA is well-placed to help secure the future of fiducie practices in Monaco.
Bill No. 269 is a welcome step towards modernising Monegasque law and providing the Principality with an internationally recognised tool. However, its success will depend on two key factors: establishing a coherent and favourable tax regime, and actively including experienced professionals, such as TCSPs and AMPA, in drafting implementation texts.
For more information, please contact Stephane Alexandre, Head of Legal: s.alexandre@rosemont.mc