Trustees’ Duty Of Confidentiality Vs Trustees’ Interests

William Simpson and Catherine Moore from Ogier Guernsey examine the balance needed between a trustees' duty of confidentiality versus the trustees' interests.

One of the key duties owed by trustees to beneficiaries of a trust is a duty of confidentiality. This is well known and generally understood by trustees, beneficiaries and fiduciary practitioners. However, in light of ever increasing pressures for tax transparency, the boundaries of this duty are being challenged. Trustees' own-interests may conflict with this duty and it is not always easy to resolve such issues.

This duty is not written into statute and there is no formal handbook that trustees can refer to when this conflict arises. It can therefore be very hard for trustees to know what to do.