Asset Protection Trusts Drive 90% Surge in Cook Islands Registrations
Growing US demand for asset protection trusts is helping drive record expansion in the Cook Islands financial services sector, with new international trust registrations now almost 90% above the level recorded two years earlier. The story has also featured in the national law review as the jurisdiction attracts increasing attention from US business owners, professionals and advisers seeking international wealth protection structures.
A Cook Islands Government report shows new trust registrations rose 42% in the past year to a record 433. Approximately 85% of licensed trustee company revenue is generated from US clients, primarily through asset protection structures.
US Demand for Asset Protection Trusts Fuels Growth
The expansion reflects growing international demand for asset protection trusts and the Cook Islands’ long-established legal framework in this area. Its asset protection legislation has been in place for more than four decades and the jurisdiction now services an international client base, with North America accounting for a large share of activity.
Financial and insurance services contributed more than NZ$48 million to the Cook Islands economy in 2024/25, up around 27% from NZ$38 million in 2019/20. The sector now represents 8.5% of real GDP, compared with 8.3% the previous year.
Southpac Group CEO Mike Arand says US demand has been an important factor in the growth.
“The jurisdiction has developed a global reputation for its asset protection trust legislation and is now administering billions of dollars in assets for international clients.
“The United States has driven much of the sector’s recent growth and will remain its most important market.”
Southpac Group, which specialises in international asset protection and trust administration, reports approximately US$4 billion under administration across its international operations.
Why Asset Protection Trusts Are Attracting US Clients
Southpac Group lawyer and director of business development Matthew Smith says more US business owners and professionals are considering asset protection trusts as part of broader financial and succession planning before disputes arise.
“We are seeing more business owners and professionals consider asset protection as part of their broader risk-management and succession planning rather than waiting until a legal claim emerges.
“The Cook Islands has a long-established legal framework, but the industry supporting it must continue investing in specialist people, compliance systems and technology as the number and complexity of international structures grow.”
The Cook Islands Financial Services Development Authority Annual Report 2024–2025 provides official context for the sector’s economic contribution, registrations and international client base.
Asset protection trusts are intended for lawful planning before claims or disputes arise. They do not override tax, criminal, insolvency or disclosure obligations.
Financial Services Sector Expands Alongside Trust Growth
The growth in asset protection trusts is contributing to wider expansion across the Cook Islands financial services industry. The number of established roles in the broader sector increased from 257 in 2020 to 325 in 2025, a rise of 68 roles or approximately 26%.
There are currently 299 filled positions, with dozens of vacancies across legal, accounting, trust administration, compliance and technology functions. Industry leaders say continued expansion will depend on access to skilled professionals and systems capable of servicing international clients across multiple jurisdictions.
Arand says the growth opportunity extends beyond professional services.
“As the Cook Islands industry expands, it will require more sophisticated systems for trust administration, regulatory compliance, identity verification, cybersecurity, payments and international client servicing.
“The next phase is not only about registering more trusts. It is about attracting technology, expertise and investment that deepen the industry’s presence in the Cook Islands.”
New Zealand Well Placed to Support Asset Protection Trusts Sector
New Zealand professionals and technology providers may also benefit as demand for asset protection trusts increases. The Cook Islands is self-governing in free association with New Zealand, uses the New Zealand dollar and its people hold New Zealand citizenship.
Arand says the close relationship between the two countries, along with similar legal and regulatory traditions, gives New Zealand firms an opportunity to support the sector.
“New Zealand is an obvious source of expertise because of the close legal, economic and constitutional relationship between the two countries.
“It also has an established fintech sector and a similar legal and regulatory tradition, which puts its technology providers in a strong position to support that growth.”
New Zealand is also home to a substantially larger Cook Islands population than the islands themselves, creating a potential pool of professionals who could return home, work remotely or support Cook Islands firms from New Zealand.
Technology, Compliance and Skills Become More Important
As asset protection trusts increase in number and complexity, financial services firms are expected to require more sophisticated systems for trust administration, compliance, identity verification, cybersecurity and payments.
The sector’s growth is also helping diversify an economy that remains heavily dependent on tourism. Financial services can provide higher-value activity that can continue remotely during disruptions to international travel.
Arand says future development will require investment across workforce capability, regulation and technology.
“The opportunity now is to ensure the Cook Islands workforce, training systems, regulation and technology develop at the same pace as international demand.”
Communicating Growth in International Financial Services
Rapid growth in specialist financial services can create communications challenges as firms explain complex legal, regulatory and commercial issues to international audiences. Clear media relations can help businesses build awareness, support reputation and explain the lawful role of asset protection trusts without oversimplifying the regulatory environment.
Impact PR works with businesses operating in complex and highly regulated sectors where credibility and clarity are critical. Our corporate PR specialists help organisations communicate technical developments, market growth and international expansion to business and mainstream media. Strong communications can also support investor awareness, professional recruitment and relationships with advisers in export markets. For financial services businesses, this means translating specialist subject matter into accurate stories that remain accessible to non-specialist audiences. As demand for asset protection trusts grows, disciplined communication will remain important for organisations seeking to build trust across multiple jurisdictions.