Article 12 – Limitations in Foreign Law

(1) Unless the Settlor has acted in bad faith, none of the matters in Article 12(2) will:
(A) render void, voidable or defective:
(i) a Trust governed by the laws of the QFC
(ii) a disposition of Property to be held in Trust that is valid under the laws of the QFC
(B) affect the capacity of a Settlor or disposition;
(C) deprive a Trustee or Beneficiary, or any other Person, of any right, under a Trust or disposition; or
(D) make a Trustee or Beneficiary, or any other Person, liable under a Trust or disposition.
(2) The reasons under Article 12(1) that may not be relied on are the following:
(A) that the laws of a foreign jurisdiction prohibit or do not recognise the concept of a Trust;
(B) that the Trust or disposition voids or defeats any rights, claims or interest conferred by a Foreign Law upon a Person because of a personal relationship with the Settlor or any Beneficiary or by way of Heirship Rights; or
(C) that the Trust or disposition contravenes a Foreign Law or a foreign judicial or administrative order, arbitration award or action intended to recognise or give effect to a right, claim or interest referred to in Article 12(2)(B).
Amended (as from 24th December 2017).