Central Scientific Experts Office of the Verkhovna Rada of Ukraine (CSEO) recommended to reject the draft law #4188 on introduction the trust property concept as a way to secure performance of obligations developed with the participation of experts of the Better Regulation Delivery Office (BRDO).
The main observations of CSEO experts are related to the idea of introducing the trust property as a way to secure performance of obligations.
However, the CSEO didn’t take into account the fact that the trust property as a way of securing obligations has existed since the Roman law times, has been widely used in the EU countries and the EU Directive #2002/47/EU provides for its functioning. Implementation of this Directive is one of our obligations under the Association Agreement with the EU.
Trust property as a concept of securing performance of obligations is a new phenomenon for the Ukrainian legal system and many provisions of the draft law require detailed discussion by experts. Nevertheless, real weaknesses of this concept and possible improvements were left out in the conclusion of the Scientific Experts Office.
The BRDO doesn’t agree with this decision. Our comments to the text of this conclusion are available here.