Finance litigation update - July 2022

FINANCE LITIGATION UPDATE – JULY 2022 34 This derogation applies to the provision of fiduciary services only; the derogations in Article 5m(6) are available in more limited circumstances if it is necessary to provide management services. Additional derogation for certain types of trust Third, national competent authorities may now authorise the provision of management services and fiduciary services for the operation of trusts whose purpose is the administration of occupational pension schemes, insurance policies or employee share scheme, charities, amateur sports clubs, and funds for minors or vulnerable adults (Article 5m(6)(c)).1 This is more consistent with the European Commission's reference to "a prohibition on providing advice on trusts to wealthy Russians, making it more difficult for them to store their wealth in the EU".2 The new derogation captures some – but not all – of the examples of trusts outside the private wealth sphere that we identified in our previous article. Article 5m(5)(b) referred to above may be of assistance in other cases, although we note that it only applies to fiduciary services and not management services. Any authorisation granted by a national competent authority must now also be reported to the European Commission (Article 5m(7)). If you would like to discuss the impact of the sanctions, then please contact one of our team. Sue Millar and Stephen Ashley 1 This is in addition to existing derogations for humanitarian purposes and civil society activities that directly promote democracy, human rights or the rule of law in Russia. 2