George Grierson examines why fewer High Street banks now deal with trusts

A number of well-known banks in the UK have, over the past year or so, stopped offering traditional banking services to trusts, citing issues such as cost, complexity and compliance as reasons for exiting a long-established part of the market.

One of the key issues is a lack of understanding around the nuances of different types of trusts. While some banks have maintained services for bare trusts or nominee accounts (most commonly used by parents opening accounts on behalf of children), many have become less well-acquainted with discretionary or life interest trusts and the accompanying tax and legal considerations.

One lender last year, reacting to a media enquiry, said it was discontinuing accounts because of new fraud prot...

George Grierson
Banking Director
Hampden & Co

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