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The Trust Law (Amendment) Ordinance 2013 was gazetted today (July 26) following the passage of the relevant bill by the Legislative Council on July 17.
A Government spokesman said, "The Amendment Ordinance will bolster the competitiveness of Hong Kong's trust services industry and attract settlors to set up trusts in Hong Kong, in turn enhancing Hong Kong's status as an international asset management centre. In particular, the Amendment Ordinance gives Hong Kong a competitive edge over the other major common law jurisdictions by enabling settlors to establish perpetual trusts in Hong Kong.
"The Amendment Ordinance will also enhance the protection for beneficiaries by imposing statutory control on clauses in trust deeds which seek to limit trustees' liability. For trustees who are remunerated and are acting in a professional capacity, nothing in the terms of trust deeds shall relieve them from liability for breach of trust arising from trustees' own fraud, willful misconduct or gross negligence."
In addition, the Amendment Ordinance would make Hong Kong more attractive as a trust domicile to settlors, especially those from civil law jurisdictions, because by setting up trusts in Hong Kong, they would not need to worry that the allocation of their trust assets in future could be influenced by relevant forced heirship rules in their home jurisdictions against their wishes. The Amendment Ordinance also enhances trustees' default powers and duties to better meet the needs of present-day trusts.
"We will work with the trust industry to enhance awareness of the Amendment Ordinance both locally and overseas. Looking ahead, we will continue to keep in view pertinent developments abroad and consider further improvement to our trust law as an on-going task," the spokesman added.
The Amendment Ordinance will commence operation on December 1, 2013. The statutory control on trustees' exemption clauses will take effect on the same date for new trusts established on or after that date. For pre-existing trusts, the statutory control will take effect one year thereafter, i.e. on December 1, 2014, to allow time for the relevant trusts to make transitional arrangements.
Ends/Friday, July 26, 2013
Issued at HKT 11:51
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