Property News · January 13, 2017

Blind trusts: what do Theresa May and Donald Trump have in common?


It has emerged that May put her financial affairs into a blind trust on becoming prime minister, and Trump claims he’s done something similar. The idea is to avoid the appearance of any conflict of interest – but it’s never quite that simpleWhat is a blind trust, and why is the prime minister using one?Blind trusts are designed to give the public confidence that a minister cannot benefit personally from decisions over which he or she has influence. Some politicians will sell anything that could be construed as a conflict of interest – Barack Obama sold all his stocks shortly after becoming a senator. But if a minister wants to hold on to any assets that could be in conflict with their ministerial brief, then they are put in a blind trust run by independent trustees, where the minister has no control or knowledge of how the assets are managed. President Lyndon Johnson was an early adopter of a blind trust, as he did not want to sell the Texas television station he owned before entering the White House.This week it was disclosed that Theresa May, according to the Cabinet Office list of ministerial interests, has a “blind trust/blind management arrangement” for her financial interests. Continue reading…

Source : theguardian.com
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