Trusts are a highly regulated private legal arrangement where assets, once transferred into the trust, are held in the name of the trustee, with the principle of maximizing the benefits for the beneficiaries.

Trusts governed by Hong Kong jurisdiction are protected under the Personal Data (Privacy) Ordinance, ensuring absolute confidentiality and protection of the settlor’s personal information, including their assets and personal details. The trustee is prohibited from disclosing any trust information to third parties without the consent of the settlor or a court order from the High Court. Therefore, trusts offer a high level of secrecy and are considered a discreet asset management method.

High Privacy Protection

Through a robust trust system and legal framework, assets held within trusts enjoy a high level of privacy. Personal information, financial details and terms are strictly confidential and not disclosed to any institution, organization, or individual without consent.

Trust laws also require trustees to adhere to confidentiality agreements, ensuring that trust assets are used or disclosed appropriately. Unless authorized by the settlor, the trustee cannot transfer trust assets to others or use them for other purposes.

Privacy Concerns for Bank Clients

In contrast to the absolute confidentiality provided by trust institutions, banks have faced cases of privacy infringement. For example, Citibank (Hong Kong) was previously sued for continuing to use personal data for direct marketing purposes despite the client’s refusal, violating the Personal Data (Privacy) Ordinance.

Emphasizing Asset Privacy and Security

With increasing cybersecurity risks and surveillance, more people are becoming concerned about personal privacy and security. This concern is particularly significant in the financial sector, where asset privacy and security are paramount. If you value personal privacy and seek to remain free from institutional surveillance, we can provide further information on how trusts can safeguard your privacy and security.If you want to learn more about trusts, stay tuned for our upcoming article in Knowledge of Trust.