The joint committee on trust law reform backs HK initiatives
26 November 2012
News, Hong Kong
By Asia Asset Management
The joint committee on trust law reform responded immediately to the release of the Hong Kong government’s Consultation Conclusion on the Detailed Legislative Proposals on Trust Law Reform on Friday (November 23) by issuing a press statement in support of the amendments.
“We are very pleased with the direction that the government has decided to take by introducing amendments to the trust law regime. The trustee ordinance was enacted in 1934. Since its enactment, it has not been substantially reviewed or amended. This piece of legislation is therefore long overdue for modernisation,” it stated.
The proposed changes to the trust law in Hong Kong follows similar amendments in the United Kingdom in 2000, and in Singapore in 2004.
“The joint committee is of the view that a modern, predictable and equitable trust law regime that will align Hong Kong with the best practice around the world will attract more trust business for Hong Kong.
“In particular, the joint committee believes that, among the major proposals of the reform, there are three aspects which will be particularly beneficial to Hong Kong as a trust jurisdiction:
1. Introducing a statutory duty of care on trustees thus protecting the rights of beneficiaries.
2. Allowing settlers to reserve investment powers and asset management functions to themselves without affecting the validity of the trusts.
3. Abolishing the rules against perpetuities and excessive accumulations of income because these are now considered outdated.
The enactment of the amendment bill for the trustee ordinance, when passed, will strengthen the competitiveness and attractiveness of Hong Kong as a modern-day trust jurisdiction and further consolidate the city’s status as a leading local and international asset management centre,” it said.
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