Consultation on the Proposed Amendments to the Trusts and Trustees Act
News    ·   14-12-2012

AUTHOR: Donald Vella

On the 14th December 2012, the Listing Authority issued a consultation document on proposed amendments to the current Trust and Trustees Act, Cap. 331 of the laws of Malta (the ‘Act’), and the creation of two new regulations proposed to be issued under the Act. The proposed amendments vary from the alignment of definitions in the Act with those contained in other laws, the extension of the term for the validity of a trust, the introduction of settlor reserved powers to the introduction of an “enforcer” for the purposes of a charitable trust.

The most noteworthy proposal contemplated in the consultation document is that of the requirement that only a company, whether resident or operating in Malta, shall be permitted to obtain authorisation from the Malta Financial Services Authority (MFSA) to act as a trustee. The possibility of an individual applying for authorisation as a trustee would be removed completely following the proposed amendments to the Act. The consultation document proposes that in this regard, the authorised (corporate) trustee would be required to have a minimum share capital of to €25,000 apart from that referred to in the Companies Act, Cap. 386 of the laws of Malta, for the registration of a company. Moreover the possible introduction of the requirement that an authorised trustee hold professional indemnity insurance cover commensurate to the activities provided by it is also contemplated in the consultation document.

For a copy of the consultation paper, please click here.

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