Trust law reform legislation gazetted in Hong Kong

The Trust Law (Amendment) Bill 2013 was gazetted on 8 February 2013, following a public consultation in Hong Kong on trust law reform.

The Bill amends the current legislative framework for trust law in Hong Kong and seeks to extend trustees’ powers, provide clarification of the duties and powers of trustees, provide better protection of beneficiaries’ interests and modernise trust law generally.

The key changes in the Bill follow the legislative proposals set out in our newsletter of June 2012. It is worth noting that the reforms are unlikely to impact a fund structured as a unit trust, as the trustees’ powers conferred by the Trustee Ordinance apply only to the extent the trust deed is silent. The Bill is currently in the legislative reading process.