BUSINESS NEWS


Referring to ‘gold-standard’ trust accounts, Abta’s John de Vial (pictured) says: ‘There aren’t easy answers for 99% of Abta members as to how you pass all customer money into a trust account’


‘Trust accounts are not only protection solution’


Abta ‘not against trusts’ but says bonding can achieve same goal. Ian Taylor reports


Travel businesses will switch increasingly to trust accounts to protect customers’ money if the CAA has its way, according to leading industry accountant Chris Photi. But Abta remains unconvinced,


insisting other methods including bonding “achieve the same goal”. Photi, head of leisure and travel at


White Hart Associates, told a Travel Weekly Future of Travel Week session: “The trust model is going to become more and more prevalent. “The CAA’s view is the impacts of


Covid-19, in particular refunds, have been more efficiently dealt with by


40 24 SEPTEMBER 2020


FUTURE WEEK


September 14-18, 2020


Atol-holders which operate trusts.” He acknowledged a trust “comes


with a cashflow impact” and said bonding would remain “acceptable under law”, but insisted: “Covid-19 has stress-tested models like nothing else. Trusts can’t be mandatory, but the CAA is arm-locking businesses


to look at trusts, particularly in the cruise sector.” Abta director of membership and


In partnership with


financial services John de Vial agreed: “The CAA is looking at mechanisms, including trust funds, to see a greater segregation of customer monies. “We say, ‘That is fine, but give


participants a choice’. Different mechanisms achieve the same goal, including bonding. “It’s said Abta has always been


against trusts. What we’re against is the current type of trust where not all


Continued on page 38 travelweekly.co.uk


BUSINESSNEWS


PICTURES: Shutterstock; Steve Dunlop


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