The need for authoritative guidance for trust accounting in Malta : a survey

Abstract

The purpose of this study is to explore whether, in the light of no local Trust Accounting guidelines, any problems are being encountered in the Maltese Trust sector. An analysis is made on whether a need exists for the development of such guidelines and the characteristics that these should entail. The objective of this study was achieved through the conduct of semi-structured interviews with a number of practitioners in Trust Accounting and also with a representative of the regulator, the MFSA. This study ascertains that Malta's current Trust Accounting situation may be leading to future problems that had been identified in foreign jurisdiction having the same situation. It is also concluded that there is a need for Trust Accounting guidelines to be developed that address the local scenario in order to eliminate, as much as possible, future problems and also to enhance the credibility of this growing sector. The study suggests that flexible, clear and simple guidelines of what the minimum accounts to be kept should be, together with explanations and general formats would be beneficial for the Maltese Trust sector.