The Financial Services & the Treasury Bureau has launched a three-month public consultation on proposals to modernise the Trustee Ordinance.
The key proposals include:
* introducing a new statutory duty of care for trustees;
* retaining the range of authorised investments in the ordinance's 2nd Schedule to provide reasonable "safe harbour" limits of investments by trustees;
* enhancing the safeguard in temporary delegation of trustees' powers so the number of trustees will not be reduced to one, which is against the will of the settlor;
* providing trustees with a general power to appoint nominees and custodians with necessary safeguards, and with wider powers to insure trust property;
* providing a default charging clause to enable the remuneration of professional trustees of non-charitable trusts;
* providing an alternative court-free route for certain beneficiaries to remove trustees;
* subjecting trustee exemption clauses seeking to exempt professional trustees who receive remuneration for their services to some statutory control, and promulgating a code of best practices regarding the use of trustee exemption clauses by the relevant professional bodies; and
* reforming or abolishing the rules against perpetuities and accumulations of income.
Download the consultation document here. Views can be submitted by mail to Division 6, Financial Services Branch, Financial Services & the Treasury Bureau, 15/F, Queensway Government Offices, 66 Queensway, Hong Kong, by fax to 2869 4195, or by email before September 21.
To participate in an online discussion on this topic, click on the orange headline above.