Art Lawyer Jon Sharples Calls for UK Trust Law to Shield Artists from Gallery Insolvency
During the Art Business Conference held in London in September, art attorney Jon Sharples called for the introduction of UK laws to safeguard artists who consign their works to galleries, akin to regulations in the United States. The statute enacted in New York in 2012 requires dealers to keep consigned artworks and the proceeds from sales in trust accounts. This would guarantee that artists receive timely payments and can retrieve their funds if a gallery goes under. Recent insolvencies among galleries have left many artists in uncertain situations, particularly when unpaid storage firms are involved. While Sharples acknowledged the existing common-law protections, he emphasized the need for legislative reform and improved awareness of current responsibilities, noting the absence of a cohesive representation for visual arts organizations in the UK.
Key facts
- Jon Sharples, an art lawyer, advocated UK consignment protection legislation at the Art Business Conference in London in September
- Sharples first made the call in a 2023 article for The Art Newspaper
- New York enacted a 2012 law requiring dealers to hold consigned works on trust and keep sale proceeds in trust accounts
- Many US states have statutes protecting artists from dealer financial misconduct, unlike the UK
- Artists risk losing consigned works held by unpaid third-party storage firms after gallery insolvencies
- UK galleries already face anti-money-laundering rules, data protection and artist resale royalties not imposed on New York dealers
- Common-law agency makes galleries fiduciaries for artists, imposing duties to account and a ban on secret profits
- No umbrella organisation currently represents UK visual arts bodies, though a trade body has been proposed
Entities
Artists
- Jon Sharples
Institutions
- Art Business Conference
- The Art Newspaper
Locations
- London
- United Kingdom
- New York
- United States