CLLS has input its view on the extension to the TRS. As with other respondents, it notes several types of trust it thinks should be out of scope, including:
- trust arrangements that are incidental to a corporate transaction, such as a buyer of a business holding on trust sums it receives that are rightfully due to the seller. These trusts are all ancillary to the main transaction and would often be mutual. CLLS feels that requiring these to register would be disproportionate;
- “type B” trusts: CLLS comments that it would be odd if a type B trust in a transaction were required to register when a party that was a type A trust would not. Additionally, failure to include exemptions for these and ancillary trusts could lead to significant disclosure requirements relating to third country entities, which would again be disproportionate; and
- beneficial ownership of shares.