What the Trust Law amendment means for Hong Kong

Ordinance was gazetted today.

According to a report, the Trust Law (Amendment) Ordinance 2013 was gazetted today.

The changes come into effect on December 1, and will give Hong Kong a competitive edge over other major common law jurisdictions by enabling settlors to establish perpetual trusts in Hong Kong.

The Legislative Council passed the bill on July 17. The amendment aims to enhance the competitiveness of Hong Kong's trust services industry, reinforcing the city's status as an international asset-management centre.

It will enhance beneficiaries' protection by imposing statutory control on clauses in trust deeds which seek to limit trustees' liability.

The changes will also make Hong Kong more attractive as a trust domicile to settlors, and will enhance trustees' default powers and duties to better meet present-day trusts' needs.