Our comments deal only with the types of trustee appointments associated with corporate finance, including asset based and project finance (corporate finance trusteeships). These appointments are of a different kind from those associated with settlements and charities, the main concern of the Commission in its Paper. They are much more akin to contracts between competent, well advised parties.
- We believe that the current system works well and in the interests of all parties – those raising funding, those providing it and trustees.
- Existing protections for “beneficiaries” under CA 85, s. 192 (and similar provisions applied in corporate finance trusteeships to which CA 85 s, 192 does not apply) are satisfactory and are seen as such by the market.
- Changes would have substantial effects on practice and be materially damaging not only to the corporate sector in its funding arrangements but also to the position of London as a centre for corporate finance activity.
- Whatever changes to the law of trust regarding trustee exemptions should not apply to trusts in this corporate finance field.
