Bermuda has introduced significant amendments into its trust legislation affirming its position as a leading jurisdiction for modern and forward-thinking trust structures. These new laws create a framework for modern fiduciary practice, providing a model for other jurisdictions to follow and paving the way for global reform.
The new legislation makes it clear that, when considering the exercise of powers of investment, trustees may take into account not only financial returns but also settlors’ and beneficiaries’ views on the broader impacts of the trust’s investments – on society, the environment, or otherwise – alongside other material factors that affect financial performance.
The legislative amendments, introduced by the Trustee Amendment Act 2025, were based on drafting work undertaken by Edward Cumming KC and Niamh Davis, both of XXIV Old Buildings, instructed by Chris Moorcroft TEP of Harbottle & Lewis.
Bermuda industry partners drove the trust law amendment proposal, in association with STEP and the Bermuda Business Development Agency, led by Gina Pereira TEP of Dana Stewardship Advisory.
This development responds to growing demand for responsible investment approaches, beyond financial motivators, driven by settlors and beneficiaries who wish their trusts to reflect both financial and non-financial priorities.
Edward Cumming KC said “I was delighted to assist the fantastic work undertaken by the Bermuda trust industry, led by Gina Pereira TEP, with the support of STEP and the Bermuda Business Development Agency, and to see this interesting development come to fruition. I know from the issues that I encounter in my own practice that concerns about the matters addressed by the Trustee Amendment Act 2025 have been becoming increasingly prevalent in recent years”.
Niamh Davis said “It has been very interesting to grapple with this complex issue, and to be involved with the legislative process in this way, at this early stage in my career. I hope that this amendment will give greater confidence to trustees of trusts governed by Bermuda law when considering how to exercise their powers of investment in the future”.
Bermuda has shown leadership by modernising its trust legislation to reflect the evolving needs and expectations of families, beneficiaries and society and to clarify trustees’ ability to adopt responsible investing approaches. These reforms place Bermuda at the forefront of global trust law development
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