Are Trusts Reliable and Secure?
Absolutely. Their reliability rests on two key pillars:
1. Strict Regulatory Oversight
Hong Kong’s trust industry has nearly a century of history, governed by the Trustee Ordinance (derived from over a hundred years of English law) and safeguarded by the Recognition of Trusts Ordinance. The Hague Convention further strengthens its legal validity, offering top-tier asset protection. Licensed trust institutions are directly supervised by the Hong Kong Financial Secretary and, as part of the cross-border financial sector, are subject to multi-agency reviews.
2. Independence of Trust Assets
According to Section 89 of the Trustee Ordinance (Cap. 29), all funds, property, and securities held by a trust company must be strictly segregated from the company’s own assets. Each trust is independently recorded in the books to avoid confusion with other projects. Thus, trust funds are never considered part of the company’s assets. Under Section 11(b), Chapter 3 of the Recognition of Trusts Ordinance, even if a trustee becomes insolvent, trust assets remain unaffected and legally protected.
These mechanisms not only safeguard your wealth against market volatility or unforeseen events but also build a solid foundation for family succession across generations, empowering you to confidently pursue financial independence.