Dr de Marco said that if there was just one dodgy case, it can tarnish Malta’s hard earned good reputation in the financial

services sector.

He also warned about the possible abuse of trusts for purposes of income tax evasion. Dr de Marco said problems could also arise from a Maltese national setting up a trust in Malta and having it regulated by foreign law, as is allowed.

“We must not allow such a situation to go against Maltese mandatory regulations,” he said.

He also warned of being careful in imposing obligations on trustees when they only have limited liability.

Opposition MP Justyne Caruana said that this Act needed to be gone through with a fine tooth comb.

“We must see to it that the trustee is regulated to ensure there is no abuse and that the system works properly.”

She also said that the house should be careful to look out for incompatibilities with different laws such as marital law as well. “For example if there is a separation and a trust is there, it could cause difficulties. There should be clear regulations and guidelines to make sure there is no trouble in the future,” she said.

Ms Caruana said she wanted to explain the social aspect of this Act.

“In simple language, a trustee will be trusted to administer a property or a fund.”

She said a good example would be parents of disabled children leaving a trust to make sure they are financially secure and someone to administer it for them. “Other examples include trusts for spendthrifts and drug addicts,” she said. Opposition MP Stefan Buontempo also spoke on similar lines to Ms Caruana. He said that both political parties had agreed to pass this Act through parliament for the benefit of all Maltese and Gozitans. “Some parents worry about how their property will be administered after they die. With this trust fund Act, those worries will be dispelled,” he said.

He also said that this Act should not only be regarded as a financial one, but also as a social one, especially for parents with children who have a disability.

MLP MP Marie Louise Colerio also took the same line saying that parents, perhaps specifically, those of disabled children, are very worried about their children’s future. “This law will give these parents hope and encouragement in the finding of a remedy to their worries,” she said.

She pointed out that the trustee will be regulated properly by law and parents will also be able to put their trust in the person they want rather than having a simple administrator.

“There is no doubt that this new law, when it becomes so, is worthy of praise,” she said. She also pointed out that parents will have the choice of whether to make a trust irrevocable or not. Opposition MP Joe Brincat however, expressed some reservations.

“Trusts evolved in the UK where the sense of fair play and confidence are important.

“In Malta and other Continental countries, the more a person is wily and bends the rules, the more people say irnexxielu (he managed),” he said. Dr Brincat warned that it was imperative to ensure that Malta did not get a bad reputation in this field. He did, however, say that there were many positive aspects to the law. “We must make sure that we do not hit any unseen potholes along the way,” he said.