A Bill which aims to provide clarity and convenience for users of Manx trusts and local trust practitioners is the focus of a consultation launched today (Monday 11 April) by the Isle of Man Government.
The draft Trusts and Trustees Bill 2022 aims to modernise and stimulate greater competition in the Island’s trust sector through amendments to existing legislation and additions to trust law.
The Bill comprises a set of proposals, the majority of which were originally put forward in 2015 to the Regulatory and Legislative Innovation Working Group — featuring representatives from across the Island’s finance sector — and were subject to a stakeholder consultation in August 2016.
The Treasury subsequently worked with internal partners and external stakeholders, as well as the Financial Services Authority, to robustly explore the proposals and prepare the policy that underpins the Bill.
Seven distinct changes to Isle of Man trusts law are proposed within the Bill, and the consultation addresses each in turn:
- Disclosure of trust information
- Power of trustee to contract with himself
- Liability of trustees to third parties
- Validation of appointments where objects are excluded or take illusory shares
- Power to declare exercise of a power voidable
- Amendment of the Limitation Act 1984, shortening the current six-year limitation period in which a beneficiary can bring a claim for breach of trust to three years
- Amendment of the Apportionment Act 1982
The consultation includes 25 questions, which aim to gather views and feedback before the Bill is finalised and taken through the branches of Tynwald. Additional comments or questions can be supplied using the open text section at the end.
The consultation document is available to view and download from on the Isle of Man Government consultation hub by visiting consult.gov.im
Alternatively, written comments can be emailed to treasuryconsultations@gov.im or by post to Jo Coole, Policy Advisor, Policy Office, The Treasury, 1st Floor, Government Office, Buck’s Road, Douglas, IM1 3PU. To request a printed copy of the consultation, call +44 1624 687065.
The process will run for four weeks and conclude on Monday 9 May 2022.
