Justiceface
Justiceface
Apr 06, 2026
Bermudas

Privy Council Affirms Protectors' Fiduciary Role in Trusts

On 19 March 2026, the Judicial Committee of the Privy Council delivered its judgment in A and Ors (Appellants) v C and others (Respondents) [2026] UKPC 11, overturning the Bermuda Court of Appeal and holding that the protectors of the X Trusts had the 'wider' role, rather than a narrow supervisory one.

The decision has been closely watched by trust practitioners globally as it resolves a long-running uncertainty, namely, where a trust instrument requires protector consent as a condition to exercise a trustee power but the trust instrument is silent on how such consent is to be exercised, is the protector (a) confined to reviewing the rationality and legality of the trustees’ proposed decision, or (b) may the protector exercise an independent judgment on the merits?

The Privy Council has now made clear that, absent express language imposing narrower constraints in the trust instrument, the protector is not limited to acting as a mere watchdog.

This ruling has significant implications for the drafting of trust instruments and the administration of trusts, emphasizing the need for clarity in defining the roles and powers of protectors.