Package Travel Regulations Question

Hi everyone,

Firstly I'd just like to say what a brilliant website - a real gem for the small fish out there who need a little extra help with the ins and outs of the industry (which seem endless)!

I actually have a question about the lovely Package Travel regulations. I know that if you own a British registered tour operator with the aim of selling none flight based packages to foreign destinations to British clients, you have to have a trust fund, bond or insurance in place to protect all monies paid to you in the case of your financial collapse.

However, I have now been approached by a Russian client who also wants to buy a holiday from the company. I'm not sure however how this lies as regards financial protection and whether a British company is obliged to protect the monies of foreign clients? Clause 3-(1) in the PTR's states that 'These Regulations apply to packages sold or offered for sale in the territory of the United Kingdom' and after reading the Berr question and answer sheet (http://www.berr.gov.uk) it seems that people booking from outside of the UK do not need to be covered as they do not fall in this territory.

However, I find it hard to believe that you are not responsible for covering them as well?

Any tips would be greatly appreciated!