Implementation of a fiduciary fund as a quasi-trust
This article analyzes the prospects and key challenges of implementing the fiduciary fund institution as a quasi-trust legal construct in the context of the ongoing recodification of the Civil Code of Ukraine. The main rationale for introducing statutory regulation of fiduciary funds lies in the economic necessity to retain and protect domestic investment, as some Ukrainian investors opt for foreign legal regimes, primarily due to the flexibility and asset protection offered by trust structures. The study demonstrates that harmonization with European and global legal standards is seen as imperative, yet specific trust types, such as «spendthrift» and massively discretionary trusts, reveal abusive practices that must be prevented under national law. Comparative analysis of Ukrainian joint investment institutions legislation reveals similarities with discretionary trusts but also highlights unique features and regulatory safeguards. The research emphasizes the necessity of conceptual clarity regarding fiduciary duties, as well as interaction with family and succession law. The conclusion states that carefully reformed institutions of joint investments, aligned with local and international standards, could enhance both economic activity and protection of stakeholders, while minimizing the risks of misuse and legal uncertainty.
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