When I grow up… I don't want to be broke: The problems with child actor trust fund requirements

This article describes and evaluates selected aspects of accounting and tax regime of the Czech trust fund. The Czech legislature has resolved the incompatibility between the private law nature of the trust fund and public law requirements through a series of pragmatic legal fictions, which treat the trust fund as a legal person for accounting and tax purposes. The article identifies the Czech tax model as a viable framework for use within a holding structure, whilst also highlighting the regulatory tension between the desire for discretion and the growing pressure for transparency under AML legislation.

FOR TWO-AND-A-HALF YEARS, THE Senate Judiciary Committee has been developing legislation to compensate victims harmed by exposure to asbestos. The bill now under consideration would create a $140 billion trust fund for asbestos injuries, removing many asbestos lawsuits from the courts. From the start, the bill's progress has been hampered by arguments over the size of the trust fund and medical requirements, and now a new hurdle to crafting a workable, fair bill has arisen. People already compensated for asbestos injuries are returning to the courts, claiming injury from silica exposure as well. According to Claims Resolution Management Corp., a firm that processes toxic tort claims, among a total of 8,629 plaintiffs in silica lawsuits, 5,174 had previously filed asbestos claims, and many had already been compensated. Industry fears that legislating an asbestos trust fund will give impetus to a new wave of fraudulent silica lawsuits. Although it is theoretically possible for a worker to ...

Sovereign Wealth Funds (SWFs) are pools of assets owned and managed directly or indirectly by governments to achieve national objectives. These funds have raised concerns about: i) financial stability; ii) corporate governance and iii) political interference and protectionism. At the same time governments have formed other large pools of capital to finance public pension systems, i.e. Public Pension Reserve Funds (PPRFs). SWFs are set up to diversify and improve the return on foreign exchange reserves or commodity revenue, and to shield the domestic economy from fluctuations in commodity prices. PPRFs are set up to contribute to financing pay-as-you-go pension plans. The total of SWF pools is estimated at around USD 2.6 trillion in 2006/7, and is getting bigger rapidly, owing to current exchange rate policies and oil prices. The total amount for PPRFs is even larger, around USD 4.4 trillion in 2006/7, if the US Trust Fund is included (USD 2.2 trillion if excluded). SWFs and PPRFs share some characteristics, hence give rise to similar concerns. However, their objectives, investment strategies, sources of funding and transparency requirements differ. There is concern about strategic and political objectives of SWFs, and their impact on exchange rates and asset prices. But SWFs also provide mechanisms for breaking up concentrations of portfolios that increase risk. Enhancing governance and transparency of SWFs is important, but such considerations have to be weighed against commercial objectives.

Sovereign Wealth Funds (SWFs) are pools of assets owned and managed directly or indirectly by governments to achieve national objectives. These funds have raised concerns about: (i) financial stability, (ii) corporate governance and (iii) political interference and protectionism. At the same time governments have formed other large pools of capital to finance public pension systems, i.e. Public Pension Reserve Funds (PPRFs). SWFs are set up to diversify and improve the return on foreign exchange reserves or commodity revenue, and to shield the domestic economy from fluctuations in commodity prices. PPRFs are set up to contribute to financing pay-as-you-go pension plans. The total of SWF pools is estimated at around USD 2.6 trillion in 2006/7, and is getting bigger rapidly, owing to current exchange rate policies and oil prices. The total amount for PPRFs is even larger, around USD 4.4 trillion in 2006/7, if the US Trust Fund is included (USD 2.2 trillion if excluded). SWFs and PPRFs share some characteristics, hence give rise to similar concerns. However, their objectives, investment strategies, sources of funding and transparency requirements differ. There is concern about strategic and political objectives of SWFs, and their impact on exchange rates and asset prices. But SWFs also provide mechanisms for breaking up concentrations of portfolios that increase risk. Enhancing governance and transparency of SWFs is important, but such considerations have to be weighed against commercial objectives.

Sovereign Wealth and Pension Fund Issues

Chapter 21 - Joined-up pensions policy in the UK: An asset-liability model for simultaneously determining the Asset allocation and contribution rate