Blind trust

Blind trust

A blind trust is a trust in which the fiduciaries, namely the executors or those who have been given power of attorney, have full discretion over the assets, and the trust beneficiaries have no knowledge of the holdings of the trust and no right to intervene in their handling. Blind trusts are generally used when a settlor (sometimes called a trustor or donor) wishes to keep the beneficiary unaware of the specific assets in the trust, such as to avoid conflict of interest between the beneficiary and the investments. Politicians or others in sensitive positions often place their personal assets (including investment income) into blind trusts, to avoid public scrutiny and accusations of conflicts of interest when they direct government funds to the private sector.

British party funding

In the United Kingdom, while the Labour Party was in opposition in 1992–97, its front bench received funding from blind trusts. One set up to fund its campaign in the 1997 general election received donations from wealthy supporters, some of whose names leaked out, and some of whom received life peerages into the House of Lords after Labour won the election. [] The Neill Committee's report in 1998 found the use of blind trusts to be "inconsistent with the principles of openness and accountability" and recommended that such trusts be "prohibited as a mechanism for funding political parties, party leaders or their offices, Members of Parliament or parliamentary candidates" [cite book
author=Committee on Standards in Public Life
others=Chairman: Lord Neill of Bladen
title=The Funding of Political Parties in the United Kingdom
url=http://www.archive.official-documents.co.uk/document/cm40/4057/volume-1/volume-1.pdf
accessdate=2008-06-21
format=PDF
series=Fifth Report
volume=Volume 1
year=1998
month=October
publisher=HMSO
id=Cm 4057–I
pages=§§4.71–4.72, pp.61–2] This was incorporated into the Political Parties, Elections and Referendums Act 2000 as section 57 "Return of donations where donor unidentifiable". [cite book
chapterurl=http://www.opsi.gov.uk/acts/acts2000/ukpga_20000041_en_7#pt4-ch2-pb1-l1g57
chapter=Return of donations where donor unidentifiable
url=http://www.opsi.gov.uk/acts/acts2000/ukpga_20000041_en_1
title=Political Parties, Elections and Referendums Act 2000
series=Public Acts 2000
volume=Chapter 41
accessdate=2008-06-21
date=2000-11-30
publisher=OPSI]

References


Wikimedia Foundation. 2010.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • Blind Trust — (deutsch: etwa Blindes Treuhandvermögen) ist die Bezeichnung für einen Trust, in dem der Testamentsvollstrecker volle Entscheidungsfreiheit über das Vermögen des Empfängers hat und auch keine Kenntnis über die Bestände desselben besitzt.[1] Blind …   Deutsch Wikipedia

  • blind trust — blind trusts N COUNT A blind trust is a financial arrangement in which someone s investments are managed without the person knowing where the money is invested. Blind trusts are used especially by people such as members of parliament, so that… …   English dictionary

  • blind trust — A trust in which a trustee manages investments for someone who has no knowledge of the trust s specific assets or the actions taken by the trustee to manage them. Blind trusts are often used by high ranking elected or appointed officials to avoid …   Law dictionary

  • blind trust — loc.s.m.inv. ES ingl. {{wmetafile0}} accordo con il quale una persona in una posizione delicata si tutela da possibili accuse di conflitto di interesse mettendo i suoi affari finanziari nelle mani di un fiduciario e rinunciando a tutti i diritti… …   Dizionario italiano

  • blind trust — /blainˈtrast, ingl. ˈblaɪn(d)trʌst/ [lett. «amministrazione fiduciaria (trust) cieca (blind)»] loc. sost. m. inv. (econ.) fondo cieco …   Sinonimi e Contrari. Terza edizione

  • blind trust — blind′ trust′ n. bus a trust in which the financial investments of a public official are administered solely by a trustee, without the official s participation, so as to avoid conflict of interest • Etymology: 1965–70 …   From formal English to slang

  • blind trust — noun count LEGAL an arrangement in which a legal representative controls the money of someone such as a government official, who is not given specific information about how their money is being managed …   Usage of the words and phrases in modern English

  • blind trust — n. an arrangement whereby a person, such as a public official, in an effort to avoid conflicts of interest, places certain personal assets under the control of an independent trustee with the provision that the person is to have no knowledge of… …   English World dictionary

  • blind trust — noun a trust that enables a person to avoid possible conflict of interest by transferring assets to a fiduciary; the person establishing the trust gives up the right to information about the assets • Hypernyms: ↑trust * * * noun : an arrangement… …   Useful english dictionary

  • blind trust — A trust in which a fiduciary third party has total discretion to make investments on behalf of a beneficiary while the beneficiary is uninformed about the holdings of the trust. Bloomberg Financial Dictionary * * * blind trust blind trust ➔ trust …   Financial and business terms

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”