On November 10, 2021, the Dutch Minister of Finance sent a letter to the House of Representatives to inform them regarding the design and planning of a study into the future of the Dutch trust sector.
Design of the research
According to the Minister of Finance the main question of the study is whether in the Netherlands integrity can be sufficiently guaranteed in the provision of trust services. This question will be examined in a broader context, including the financial, economic and social added value of the trust sector for the Netherlands. In order to be able to properly answer the main question and make considerations, according to the Minister the researchers must answer at least the following questions.
Q1 - What is the nature and size of the Dutch trust sector?
How many trust offices are there in the Netherlands? Which activities do they perform and what type of clients do they serve?
Q2 - What inherent integrity risks are there to trust services in the Netherlands and can these be adequately managed?
The answer to this question should provide insight into integrity risks associated with trust services are currently offered in the Netherlands. In this respect the performance of the gatekeeper function by trust offices must also be analyzed.
Q3 - What is the added value of the trust sector in the Netherlands?
The answer to this question should provide insight into the role of trust services in the international financial system and the social and financial-economic (added) value of the trust sector within the Dutch economy.
Q4 - What will the Dutch trust sector look like in the near future?
This part of the study revolves around the question which legal and illegal trust services are expected to decrease or increase in the future and/or whether trust offices may start to focus on rendering other types of services?
Q5 - What are the advantages and disadvantages of (introducing new) regulations compared to the complete or partial ban on trust services, with a view to prevent money laundering?
For this question a number of future scenarios need to be analyzed. This concerns at least the following scenarios:
a) a complete prohibition of rendering trust services in the Netherlands;
b) a prohibition of rendering specific trust services in the Netherlands;
c) a stricter regulation of the trust sector in the Netherlands;
d) leaving the situation unchanged.
The analysis will be of an economic, legal and a social nature. Also the waterbed effects of the various scenarios must be estimated.
The planning of study
The Minister informs the House of Representatives that the tender process has started. In this respect a number of research bureaus have been approached. If the tender is successful, the selected research agency is bureaus to start the research by the end of November. The study is to be completed before the summer of 2022.
Click here to download the letter the Dutch Minister of Finance sent to the House of Representatives.
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