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The perpetuity problem pertaining to property

Wednesday 8th of June 2011

The Law Commission has released its third Issues Paper discussing proposed changes to the law of trusts, Perpetuities and the Revocation and Variation of Trusts, and it outlines proposed changes around perpetuities rules and rules that allow trusts to be altered.

While Cron believes any changes will be some time off, he does believe change is required.

"We need to tidy up the whole industry," he said.

"The stuff that we're seeing just leaves you cold. We had clients just in before that have had a trust since 2004 and they don't have any knowledge of what the trust has done, how its been working, why it was set up. They've really been led down the garden path and there's no evidence to support that fact that the trust is actually being run from any point of view, and that's just scratching the surface."

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Latest Comments
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All things said are great aspirational goals for a great financial advice industry, it mirrors what both the legislation and the code requires. However, like most things discussed it talks about what's expected not how it's done. The hardest aspect of financial advice today isn't what it is, it is how it is done. The how only comes from those that have done it, the how is only provided with examples. Guidance documents that spell out what's required along side how it it done. We’re still dealing with the same issues we started with in 2021, figuring out the how. And figuring out the how in every advice business is consuming resources that could easily be shortcut by the FMA demonstrating what they are expecting. It's not about “do it this way” its about this is the sorts of things we’re looking for. In the absence of standards and expectations, guesswork prevails. That represents significant risk to FAPs and the result is onerous overcooked advice processes for multiple advice operations and undercooked she’ll be right for single operators focused on getting the work done. Both approaches have potential for harm and as its been said earlier, leaves advisers open to explain they haven't been speeding with the authorities have pulled them over. The advice industry needs guidance on the how we know the what already.
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To correct errors in my previous post: "policies, templates, and controls" should read "policies, processes, systems and controls", and "is more conductive" should read "is more conducive".
2 days ago Paul Flood
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2 days ago agressively passive