The Package Travel and Linked Travel Arrangements Regulations 2018 changed the way that holders of travel trust accounts are able to access their protected funds. Organisers of package holidays sold after 1st July 2018 will be able to release a proportion of monies from trust that would otherwise be required to be held on trust if they obtain a commensurate degree of trust account insurance protection instead.

This represents an enormous benefit to account holders’ cash flow as they are now able to release funds from trust in order to pay suppliers.

The Package Travel Regulations 2018 also impose obligations on organisers to:

• obtain additional insurance if there is a risk of repatriation;
• obtain additional insurance to cover the risk that insufficient funds are held in trust to fully refund customers in the event of the organiser’s insolvency.

We view these changes as positive ones for trust account holders as they represent both an improvement in the quality of financial protection that trust accounts are able to offer, but also the opportunity for package organisers to release funds from trust before customers have travelled.

Our insurance partners are able to provide suitable insurances at favourable rates to our account holders.