A V C [2026] UKPC 11: Privy Council Clarifies Protector Consent Powers

Briefing Summary: The Privy Council, on appeal from the Court of Appeal of Bermuda, has authoritatively determined that where a trust instrument confers consent or "veto" powers on a protector and is silent as to the manner of their exercise, the protector will ordinarily have a wide, independent discretion. The Board rejected the approach of the Bermudian courts below, which confined protectors to a narrow supervisory function.

The judgment emphasises orthodox principles of construction, settlor autonomy, and the commercial reality of offshore trusts, while recognising a practical middle road that avoids unnecessary duplication of trustee decision-making. Although much has already been written about the decision, when viewed from a Guernsey perspective it can be said that relatively little has changed. The decision is consistent with existing Guernsey statutory provisions and, more broadly, with the direction in which Guernsey customary law was already likely developing.