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Regulation 7 Insertion of regulation 18C (Trust services)

Original text. Later amendments are not shown.

After regulation 18B (investments in relation to Russia), insert—

“Trust services

18C.
(1)

A person must not provide trust services to or for the benefit of a designated person.

(2)

A person (“P”) must not provide trust services to or for the benefit of a person connected with Russia (“C”) unless pursuant to an ongoing arrangement pursuant to which P provided those trust services to or for the benefit of C immediately before 16th December 2022.

(3)

Paragraphs (1) and (2) are subject to Part 7 (Exceptions and licences).

(4)

A person who contravenes a prohibition in paragraph (1) or (2) commits an offence.

(5)

For the purposes of paragraphs (1) and (2), trust services are provided for the benefit of a person (“B”) where—

(a)

B is a beneficiary of a trust or similar arrangement,

(b)

B is referred to as a potential beneficiary in a document from the settlor relating to a trust or similar arrangement (such as a letter of wishes), or

(c)

having regard to all the circumstances, B might reasonably be expected to obtain, or to be able to obtain, a significant financial benefit from the trust or similar arrangement.

(6)

For the purpose of paragraph (5), “beneficiary”, “potential beneficiary” and “settlor”, in relation to an arrangement similar to a trust, means those persons who hold equivalent or similar positions to those described in sub-paragraphs (a) to (c) of that paragraph in respect of a trust.

(7)

In this regulation—

  • “designated person” means a person who is designated under regulation 5 (power to designate persons) for the purposes of this regulation;

  • “trust services” means—

    1. (a)

      the creation of a trust or similar arrangement,

    2. (b)

      the provision of a registered office, business address, correspondence address or administrative address for a trust or similar arrangement,

    3. (c)

      the operation or management of a trust or similar arrangement, or

    4. (d)

      acting or arranging for another person to act as trustee of a trust or similar arrangement, where “trustee”, in relation to an arrangement similar to a trust, means a person who holds an equivalent or similar position to a trustee of a trust.”