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Allen & Overy: Risk allocation in Hong Kong trust arrangements

Allen & Overy: Risk allocation in Hong Kong trust arrangements
Published on: 19 September 2017
Published by: LexisPSL
  • Allen & Overy: Risk allocation in Hong Kong trust arrangements
  • Background
  • Family trust suffers loss
  • Claims for breach of trust and fiduciary duty
  • Trustee's and nominee director's duties under the trust deed
  • Breaches of duty by corporate trustee and nominee director
  • Bank's duties not breached
  • Practical consequences: heightened risk management

Article summary

An adverse ruling from Hong Kong's High Court against a corporate trustee and nominee director means that, depending on the settings of trust services offered by a financial institution, it may need to consider reviewing risk management of trust arrangements: Zhang Hong Li & Ors v DBS Bank (Hong Kong) Ltd & Ors [2017] HKCU 956. or take a trial to read the full analysis.

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