Trusts in Malta and Singapore : a comparative study of regulatory aspects

Abstract

Trusts come into effect whenever assets are passed on to a trustee. The latter becomes the legal owner responsible for the management and distribution to the trust beneficiaries, in line with the trust deeds. This dissertation attempts to carry out a comparative study of the legal and regulatory mechanisms within Malta and Singapore, both island states enjoying advanced trust systems. The underlying objective is to identify aspects which are commonly shared, in view of their historical genesis linked to the British trust model. Further, this approach will prove pivotal so as to identify and analyze their underlying differences specifically as regards the regulatory dimension. The literature review assesses the Maltese and Singapore context as regards the legal parameters of trusts, and likewise analyses the international academic contributions. In addition, questionnaires and interviews were conducted. The questionnaires have been carried out with trustees registered under the MFSA, and the interviews were conducted with leading trust companies within Malta, which include HSBC and BOV. It is found, that the trust sector applied to Singapore and Malta reflects both currents and future developments. The Maltese trust regulatory regime is currently experiencing significant changes which are tackled throughout the research. The new amendments are intended to align Maltese trust laws with the aspects of legislation on the international level, with the objective to secure the confidence and certainty of the trust industry. Finally, recommendations provide a constructive platform chartering future developments.