Press release 16 July 20.
Yesterday (15 July 2020) the Government published a summary of responses and the consultation outcome of the Technical consultation: Fifth Money Laundering and Trust Registration Service which confirmed that it has accepted the call from the industry that the scope of the exemption from the requirement to register a trust under the Transposition of the 5th Anti Money Laundering Directive regulations be extended/clarified as including trusts holding group risk protection policies.
Comment from Katharine Moxham, spokesperson for GRiD: “GRiD is delighted with the outcome of the technical consultation which has clarified that trusts holding pure protection policies, including group policies will be exempt from having to register with the Trust Registration Service as required by the Fifth Money Laundering Directive. This has saved over 50,000 group life and critical illness trusts from an extra administrative burden, thus removing a potential barrier to employers providing group risk benefits for their workers.
“This is a great example of the effectiveness of industry bodies raising their voices together to Government, and a great outcome for GRiD and us all.”
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Detail for editors:
2.12 The government has taken respondents’ views into consideration when
determining which trusts will be exempt from registration. Further details of the
parameters of these exemptions can be found in the legislation and will be covered
in the forthcoming guidance. In general, the following types of trusts will be exempt
from registration on TRS:
• Trusts imposed by statute, where these do not result from the clear
intention of the settlor. For example, the statutory trust arising on intestacy
• UK registered pension trusts
• Charitable trusts regulated in the UK
• Pure protection life insurance policies and those paying out on critical
illness or disablement, including group policies
• Trusts used by government and other UK public authorities
• Trusts for vulnerable beneficiaries or bereaved minors
• Personal injury trusts
• Save as you earn schemes and share incentive plans
• Maintenance fund trusts
• Certain trusts incidental to commercial transactions
• Certain trusts used as part of financial markets infrastructure
• Authorised unit trusts
• Co-ownership trusts, where the trustees and beneficiaries are the same
• Will trusts created on death that only receive assets from the estate and
trusts that only receive death benefits from a life insurance policy and are
wound up within 2 years of death
• Existing trusts holding assets valued at less than £100 unless or until further
assets are added
For further information please contact:
SMUK Marketing and PR
Mob: 07747 611773
Land: 01252 843350
Spokesperson for GRiD
Mob: 07887 512508
Notes for editors
Group Risk Development (GRiD) is the industry body for the group risk sector, promoting the value to UK businesses of providing financial protection for their staff, enhancing their wellbeing and improving employee engagement. Our membership includes insurers, reinsurers, intermediaries and those operating in (or with other interests in) the UK group risk market. Together this forms a collective wealth of experience built over many years. Under the chairmanship of Steve Bridger (managing director, Aviva Health UK) GRiD aims to promote group risk through a collective voice to Government, policymakers, stakeholders and employers.
GRiD works with government departments and regulators involved in legislation and regulation affecting group risk benefits, and with other organisations involved in the benefits and financial protection arenas. GRiD also seeks to enhance the industry's standing by encouraging best practice and by participating in industry-wide initiatives such as the professional qualification in group risk managed jointly with the Chartered Insurance Institute.
GRiD’s media activity aims to generate a wider awareness and understanding of group risk products and their benefits for employers and employees.
GRiD's dedicated spokesperson, Katharine Moxham, provides expert media comment on a full range of group risk issues.
Follow Katharine Moxham on Twitter @KMoxham