Purpose trusts: Bermuda’s answer to modern asset structuring
Purpose trusts represent a notable development in modern trust law, particularly within offshore financial jurisdictions such as Bermuda. Unlike traditional private trusts, which are established for the benefit of identifiable beneficiaries, purpose trusts are created to achieve specific objectives or purposes. Historically, common law jurisdictions were reluctant to recognise such arrangements due to the absence of beneficiaries capable of enforcing the trust. However, legislative reforms in Bermuda have significantly expanded the scope of trust law by expressly validating noncharitable purpose trusts. Through the enactment of the Trusts (Special Provisions) Act 1989 (‘the 1989 Act’), Bermuda introduced a statutory framework that allows trusts to exist for defined purposes, provided certain legal requirements are satisfied. This innovation has made Bermuda a leading jurisdiction for the establishment of purpose trusts, particularly in the fields of international finance, corporate structuring and private wealth management. This article examines the legal foundations of purpose trusts under Bermuda law, focusing on their historical development, statutory framework, requirements for validity, enforcement mechanisms and practical applications.
Manx Court blesses a Trustee decision to retain funds for potential future liabilities
The judgment of C v D et al (judgment of 17 December 2025) in the Isle of Man provides trustees with the helpful confirmation that a trustee can seek the blessing of the Court of a decision to retain funds in circumstances where the trust faces potential future liabilities.
Guide to Fintech in the British Virgin Islands 2025/2026
This country-specific guide provides an overview of the fintech landscape in the British Virgin Islands.
Bermuda Regulatory Update – Economic Substance Amendment Act 2026
On 31 March 2026, the Economic Substance Amendment Act 2026 and the Economic Substance Amendment Regulations 2026 (together, the “2026 Amendments”) came into force, enacting changes to the Economic Substance Act 2018 (“ES Act”) and Economic Substance Regulations 2018.
Digital asset developments and Bermuda’s regulatory readiness
While frightening to some, “finance bros” and “tech bros” are now wearing the same gilets as traditional finance products and structures are being infused with digital asset adaptation.
Navigating the New Legitimate Interest Access Regime for BVI Beneficial Ownership Information
The BVI legitimate interest access (“LIA”) system became operational on 1 April 2026. To establish a “legitimate interest”, an applicant must demonstrate that the purpose of the request for beneficial ownership information is to investigate, prevent or detect money laundering, terrorist financing or proliferation financing, or that the applicant is carrying out client due diligence or other obligations in accordance with the BVI’s anti-money laundering laws.
No Claim, No Injunction: What Does a Limited Partner Actually Own?
What equitable proprietary interest, if any, does a limited partner hold in the assets of a Cayman Islands exempted limited partnership, and is that interest is sufficient to ground a proprietary injunction? These questions lie at the heart of Parker J’s recent judgment in the matter of Charitable DAF HoldCo, Ltd (in Official Liquidation), in which the Grand Court refused proprietary injunctive relief sought by joint official liquidators against former directors and associated entities. The judgment holds that the Company, as a limited partner in a Cayman ELP, had no equitable proprietary interest in the Fund’s underlying assets of the quality required to found the relief sought. While the court did not exclude the possibility of an LP having proprietary rights in an ELP’s assets, it held that on the particular facts of the case such rights were excluded.
Q1’26 Suggests Cat Bond Issuance Could Reach $20bn Again, Private ILS & Sidecar Surge to Continue
It’s been an exceptionally busy start to the year for the catastrophe bond sector, with Q1’26 officially becoming the second highest Q1 on record in terms of total catastrophe bond issuance, which indicates that 2026 could end up reaching the $20 billion+ milestone once again, Brad Adderley, Managing Partner at law firm Appleby has said.
