The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

Amendments passed by the House of Assembly will help to strengthen and add value to trust administration, a cornerstone of the financial services industry, a Cabinet minister said yesterday.

Hope Strachan, minister of financial services, who moved for the second reading and committal of the Bill to amend the Trustee Act, said: “These amendments will enhance the growth and competitiveness of the Bahamas’ financial services industry  by ensuring that our legislative regime in relation to trust services and wealth management is on par with our competitors.”

She added: “The proposals are anticipated  to add value  to trust instruments in the Bahamas, making it more attractive to potential and existing clients, thus having the overall effect of creating financial services business in the Bahamas.

“This further translates into the creation of new trusts for wealth management, which will have the overall effect of creating employment and enhancing the Bahamas’ position as a major wealth management destination.”

Mrs Strachan said the Trustee Amendment Bill seeks to amend the Trustee Act Chapter 176, strengthen ing the law as it relates to the administration of trusts.

She added that a revision to Section 36  addresses the release of a trustee, and indemnification for breach of trust.

“The existing subsection 4 is inconsistent  with subsection 3 in that it does not capture the release for breach of trust. The proposed amendment is seeking to resolve a mischief which was created by a section that was inconsistent with another,” Mrs Strachan said.

She added that the amendments insert a Hastings Bass rule into the Trustee Act. “Industry

professionals highly recommended the preservation of this rule by the insertion of the principle into legislation,” Mrs Strachan explained.

“What we are seeking is to protect the principles of that rule and put it into the into legislation.The Bahamas is currently at a disadvantage for not having the rule included.”

The Hastings- Bass rule has been used for many years to relieve trustees of the consequences of their errors, being most commonly used for unforeseen tax liabilities.