Art & Law. Union collector and lawyer
ARTinvestment.RU   18 февраля 2020

Effective business support requires open communication with professional lawyers. New section AI explains why art-рынок should not be an exception

Art-рынок always surrounded by myths. Some accuse him of secrecy, lack of transparency and the existence of its internal rules. Others believe that any regulation and excessive control can cause the art market irreparable damage. Meanwhile, market participants are cautious and pay special attention to all legislative innovations, change (as an example, amendments to the civil code on the right route, the possibility of creating a hereditary funds; the adoption and entry into force of the Fifth Directive on anti-money laundering (5AMLD) in the European Union, which has been discussed in Russia, etc.). As you know, ignorance of the law is no excuse. You can, of course, possible to protect yourself from what-либо legal casuistry, to a point in adhering to the principle of the deal sealed with a handshake, or try to understand the intricacies of law, both independently and resorting to expert opinion of lawyers in many areas.

safe to say, where the members of the art-рынка would not be required of legal advice, difficult. It matters of transportation and insurance, international planning of personal assets, tax considerations, choice of structures for corporate and private collecting, inheritance, registration and legal support of transactions of donation, lease of objects of art, purchase-продажи share in works of art (European services already offer such opportunities), the credit registration on the security of art objects, the creation and development of assets of mutual investment funds artistic values and much more.

Highlight the main areas that require professional legal support.:

• deal with subjects of art

Russia's art are, though of a special kind, but things — subject to the right of regulation of civil relations in accordance with the legislation of the Russian Federation. Art objects, even those that fall under the category of "cultural values" is not excluded from Commerce. However, there are limitations and prohibitions on the export from the territory of the Russian Federation, provided for in national legislation, legislation of the Eurasian economic Union.

Deals with objects of art are often emotional and require a large number of issues, including legal. As a General rule the risk to buy a thing of improper quality lies with the buyer, the latter is a serious time and money to conduct full checks on the subject of art for authenticity, the safety and absence of claims of third parties. Attribution, appraisal and provenance are essential for subsequent evaluation. The lawyer is not directly involved in these procedures, but ensures the availability of properly formulated provisions on the essential terms of assurances and guarantees of the seller, its responsibility and opportunities for the buyer to claim compensation if the subject of the transaction was legal or physical defects. Also important is the issue of safeguarding interests of the state in the preservation of cultural valuesfor the benefit of every citizen and client's private interests, when it comes to the export of cultural property: according to the results, it may be that the buyer does not wish to make the transaction to find serious obstacles to the free movement.

• Inheritance

Becoming a full owner, you have to decide the question of preservation of a particular object and/or collection (perhaps even by the transfer to the non-state part of Museum Fund of the Russian Federation) and, later, transfer by inheritance. With the adoption of the amendments to the civil code of the Russian Federation in 2018, the testator can create a genetic Fund stating, in addition to doing business with heirs, and also the need to preserve, manage a collection. But wait, as it will be in practice. As the acquisition, sale, and inheritance of art will inevitably lead to the solution of questions of exclusive rights to objects of intellectual property. Changes concerning droit, have repeatedly been and continue to be the subject of discussion, including at the site ARTinvestment.RU in protecting the rights of authors, heirs, and relations with UPRAVA.

• Bono

Charity and philanthropic activities in the arts and culture become popular in Russia. Even if you are absolutely numerically and netdelivery man, you still want to know about tax benefits and other preferences, provided by the Museum or in the framework of the legislation based on the selected legal model for charitable and philanthropic activities.

• Digital assets

the Tokenization, smart-контракты, blockchain-платформы, digital asset... With the development of digital technologies against the backdrop of raging delight that life will be better and clearer in the arts, lawyers will help you to do the analysis and suggest how the transaction or activity will be safe from the point of view of legislation of a particular country, which are subject to the protection of acquired rights (for example, the share in the subject of art, etc.).

• the Fight against money-laundering

We approached one of the main, but not the last block of questions in respect of which legal advice will be needed. Is the fight against money laundering and the financing of terrorism. In accordance with the entered into force in the EU Fifth Directive on combating money-laundering (5AMLD), that was previously applicable to banks, financial institutions, companies, is now being extended to art-посредников, galleries, namely the requirements for providing and adopting measures, including verification of the client, deals with works of art, sources of funds. Similar provisions in relation to the art market in Russia yet, but Russian participants were waiting, and also analyze how the requirements will affect their European art-деятельности.

do Not underestimate the legal support, which is aimed at ensuring your business-интересов and compliance with the legislation of the country where you run your business. Forewarned and has the knowledge and info — is forearmed. The following cycle we will separately analyze each aspect ofthe collector with the position of lawyer.

Yulianna Vertinskaya, Legal&Compliance, especially for AI