Back Link Text Only Rich Text Print Custom print

  • Chapter 1: Chapter 1: Duties of Trustees

    • Article 38 - Duty to administer a Trust

      (1) Upon acceptance of a trusteeship, the Trustee must in the execution of its duties and in the exercise of its powers and discretions:
      (A) act with due diligence as would a prudent Person to the best of its ability and skill; and
      (B) observe the utmost good faith;
      in accordance with the terms and purposes of the Trust and these Regulations.
      (2) A Trustee must administer the Trust solely in the interest of the Beneficiaries or in furtherance or support of the purposes of the Trust.
      (3) Subject to such further requirements as may be prescribed by the Rules, a Trustee must be:
      (A) a Licensed Firm that is a DNFBP;
      (B) an Authorised Firm; or
      (C) a Person approved by the QFC Authority that is duly licensed or authorised in a jurisdiction outside of the QFC and is subject to adequate requirements in respect of anti-money laundering and counter terrorism financing, by the laws applicable to the Person.

      [Guidance Note: A Licensed Firm or an Authorised Firm that wishes to carry out the provision of administration of trusts by way of business, must be licensed or authorised to do so.]

      Amended (as from 24th December 2017).

    • Article 39 - Duties of Trustees

      (1) Subject to the Terms of the Trust, a Trustee must so far as is reasonably practical preserve the value of the Trust Property.
      (2) Except with the approval of the QFC Court or as permitted by these Regulations or expressly provided by the Terms of the Trust, a Trustee must not:
      (A) directly or indirectly profit from its trusteeship;
      (B) cause or permit any other Person to profit directly or indirectly from such trusteeship; or
      (C) on its own account enter into any transaction with the Trustees or relating to the Trust Property which may result in such profit.
      (3) Subject to Article 60, a sale, encumbrance, or other transaction involving the investment or management of the Trust Property entered into by the Trustee for the Trustee's own personal account or which is otherwise affected by a conflict between the Trustee's fiduciary and personal interests is voidable by a Beneficiary affected by the transaction unless:
      (A) the transaction was authorised by the Terms of the Trust;
      (B) the transaction was approved by the QFC Court;
      (C) the Beneficiary did not commence judicial proceedings within the time allowed by Article 55; or
      (D) the Beneficiary consented to the Trustee's conduct or ratified the transaction.
      (4) A Trustee must keep accurate accounts and records of its trusteeship. Such accounts and records must be maintained for a period of five (5) years from the date that the Trustee ceases to be trustee.
      (5) A Trustee must keep Trust Property separate from its personal property and separately identifiable from any other property of which it is a Trustee.
      (6) A Trustee must disclose its capacity as a Trustee in all business relationships entered into with a financial institution or a DNFBP.
      (7) A Trustee must maintain current and up-to-date information about the identity of the Settlor, the Trustee, the Beneficiary or class of Beneficiaries, the Protector, and details of any other Person who exercises Control over the Trust, as well as service providers.
      (8) Where any of the parties set out in Article 39(7) is a legal entity, the Trustee must maintain current up-to-date information about the identity of the ultimate Beneficial Owner of such legal entity.
      Amended (as from 24th December 2017).

    • Article 40 - Duties of co-Trustees to act together

      (1) Subject to the Terms of the Trust, where there is more than one Trustee all the Trustees must join in performing the Trust.
      (2) Subject to Article 40(3), where there is more than one Trustee no power or discretion given to the Trustees must be exercised unless all the Trustees agree on its exercise.
      (3) The Terms of the Trust may empower the Trustees to act by a majority but a Trustee who dissents from a decision of the majority of the Trustees may require its dissent to be recorded in writing.
      Amended (as from 24th December 2017).

    • Article 41 - Impartiality of a Trustee

      Subject to the Terms of the Trust, where there is more than one Beneficiary, or more than one purpose, the Trustee must act impartially and must not execute the Trust for the advantage of one at the expense of the other.

      Amended (as from 24th December 2017).

    • Article 42 - Cost of administration

      In administering a Trust, the Trustee may incur only costs that are reasonable in relation to the Trust Property, the purposes of the Trust and the skills of the Trustee.

      Amended (as from 24th December 2017).

    • Article 43 - Enforcement and defence claims

      A Trustee must take reasonable steps to enforce claims of the Trust and to defend claims against the Trust.

      Amended (as from 24th December 2017).

    • Article 44 - Collecting Trust Property

      A Trustee must take reasonable steps to compel a former Trustee or other Person to deliver the Trust Property to the Trustee, and, subject to the Terms of the Trust, to redress a breach of trust known to the Trustee to have been committed by a former Trustee.

      Amended (as from 24th December 2017).

    • Article 45 - Duty to inform and report

      (1) Subject to the Terms of the Trust and any order of the QFC Court, a Trustee must, on application in writing by a Beneficiary, disclose to the Beneficiary all documents which relate to or form part of the accounts of the Trust.
      (2) A Trustee is not required to disclose to any Person, any document which:
      (A) discloses its deliberations as to the manner in which it has exercised a power or discretion or performed a duty conferred upon it;
      (B) discloses the reason for any particular exercise of such power or discretion or performance of duty or the material upon which such reason was or might have been based; or
      (C) relates to the exercise or proposed exercise of such power or discretion or the performance or proposed performance of such duty.
      (3) Notwithstanding the Terms of the Trust:
      (A) the QFC Court may on application made to it declare that in the particular circumstances of the Trust, its terms do not render the Trustees sufficiently or appropriately accountable to one or more Beneficiaries; and
      (B) the QFC Court may pursuant to such declaration extend or restrict the rights of all or any Beneficiaries to information regarding the Trust or may make such other order as it thinks fit.
      Amended (as from 24th December 2017).