The Hague Convention defining the law applicable to trusts and their validty was ratified by the Republic of Cyprus last month. The new legislation recognises the unique legal institution of trust law, as developed in both equitable and common law and applies to trusts regardless of the date on which they were created. A trust is governed by the law chosen by the settlor and the choice must be expressed or implied in the terms of the instrument creating or evidencing the trust in writing. Where no applicable law has been chosen, a trust shall be governed by the law with which it is most closely connected. The new law governs the validity of the trust, its meaning, its effects and the its administration. However, the rights and obligations of any third party holder of the assets shall remain in force.