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deputy communities minister Johann Lamont has called for a
change in the law to allow charity trustees to take out indemnity
insurance to protect themselves.
An amendment would be made to the Charity and Trustee Investment
(Scotland) Act 2005 which currently restricts the use of
trustee indemnity insurance as it limits remuneration for
their work.
"The issue of the provision of trustee indemnity
insurance was not raised during the development or passage
of the Bill, and the difficulties arising from the restrictions
on its provision were therefore unintended," Lamont
admitted.
"We have decided that we will take action to address
the problem and remove these restrictions on the provision
of indemnity insurance through amendment” she added,
in response to a parliamentary question which heralded the
announcement.
The amendments were embraced by Scottish regulator OSCR,
which plans to advise ministers on the proposed changes.
Chief executive Jane Ryder said she was looking forward
to working with ministers to achieve a practical outcome.
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