Cook Islands trust registrations hit record amid US demand

International trust registrations in the Cook Islands rose to a record 433 in the latest year, up 42 per cent from the previous year, according to a government report.

Registrations were also nearly 90 per cent higher than two years earlier, underscoring rapid growth in a financial services sector increasingly tied to overseas wealth planning, particularly from the United States.

Licenced trustee companies derive about 85 per cent of their revenue from US clients, mainly through asset protection structures, the report said. Financial and insurance services contributed more than NZ$48 million to the Cook Islands economy in 2024/25, up from NZ$38 million in 2019/20.

The sector now accounts for 8.5 per cent of real GDP, compared with 8.3 per cent a year earlier. For a country long reliant on tourism, the expansion of financial services offers a second source of income that can operate remotely when travel is disrupted.

Much of the business centres on the Cook Islands' longstanding trust legislation, which has been in place for more than four decades. Providers in the jurisdiction administer billions of dollars in assets for international clients through trust structures, with North American demand a major driver.

Southpac Group, a Tauranga-based firm specialising in international asset protection and trust administration, has about USD $4 billion under administration across its international operations. It said the next stage of growth for the Cook Islands industry would depend not only on legal and advisory expertise, but also on stronger technology and compliance systems.

Mike Arand, Chief Executive Officer of Southpac Group, linked the market's growth to demand from the US.

"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," Arand said.

Skills shortage

Alongside rising trust registrations, the industry is contending with labour shortages. The number of established roles across the wider financial sector increased from 257 in 2020 to 325 in 2025, a rise of 68 positions, but only 299 roles are currently filled.

Vacancies remain across legal, accounting, trust administration, compliance and technology functions. That gap has sharpened attention on whether the Cook Islands can recruit enough specialists to support larger and more complex international structures.

Matthew Smith, Lawyer and Director of Business Development at Southpac Group, said the industry would need to keep investing as demand rises.

"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," Smith said.

That need for investment points to potential openings for software, payments and regulatory technology providers. Areas identified by industry participants include trust administration systems, anti-money laundering and compliance tools, identity verification, cybersecurity and cross-border payments.

Arand said the issue went beyond staffing.

"Financial services contribute more than twice as much to the Cook Islands economy as agriculture, fishing and construction combined. Continued growth will depend on access to highly skilled professionals and the technology required to serve international clients across multiple jurisdictions," he said.

Technology demand

The concentration of revenue in the US market means Cook Islands providers must meet the expectations of advisers and clients dealing with cross-border legal, tax and risk issues. As structures become more complex, firms face heavier administrative and reporting demands, increasing pressure for more advanced systems.

Southpac said the shortage of specialist technology and compliance skills on the islands could create room for support from offshore providers, especially in nearby New Zealand. The Cook Islands' constitutional and economic links with New Zealand, combined with a larger Cook Islands population based there, may give firms access to legal, accounting and technology professionals outside the islands.

Arand said New Zealand was well placed to supply expertise and systems for the sector.

"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," he said.

He added: "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."

The latest figures suggest that, as international demand grows, the Cook Islands financial services industry is becoming a larger part of the domestic economy while also exposing the limits of local capacity.

"The opportunity now is to ensure the Cook Islands workforce, training systems, regulation and technology develop at the same pace as international demand," Arand said.