Bermuda has taken a landmark step in modernising trust law with the enactment of the Trustee Amendment Act 2025, which provides trustees with long-needed clarity around responsible investing.

The reform was driven by Bermuda’s industry in association with STEP and the Bermuda Business Development Agency, led by Gina Pereira TEP of Dana Stewardship Advisory. The technical drafting was supported by Chris Moorcroft TEP of Harbottle & Lewis, and Edward Cumming KC and Niamh Davis of XXIV Old Buildings.

The Act confirms that trustees may consider not only financial returns, but also the social, environmental and ethical views of settlors and beneficiaries when making investment decisions.

Its introduction alongside the Benefit Entities Act 2025, which allows companies and partnerships to opt into responsible business practices, means that Bermuda now offers a cohesive framework that aligns private wealth management with broader societal values.

Traditionally, trustees have been required to prioritise financial performance, with uncertainty around whether broader considerations could be taken into account. The Trustee Amendment Act 2025 addresses this gap by giving trustees legal certainty to adopt values-aligned investment strategies while continuing to meet their fiduciary duties.

How STEP’s legislative model informed the reforms

The reforms are based on a legislative model that is designed to allow trustees to consider the societal and environmental impact of investments alongside financial outcomes.

STEP worked closely with Bermuda’s government and stakeholders to promote legislation that reflects evolving investment practices and the expectations of settlors and beneficiaries. With Bermuda now adopting this approach, STEP is encouraging other jurisdictions to update their trust laws to provide similar clarity and flexibility.

Key features of the Trustee Amendment Act 2025

The legislation establishes a modern fiduciary framework built on five key principles:

• Consideration of non-financial societal factors;
• Recognition of settlor and beneficiary values;
• Focus on long-term value-creation;
• Alignment with regulatory and transparency standards and
• Support for responsible and sustainable investing.

This Act provides legal certainty for trustees, clearer guidance on balancing financial and ethical priorities, and stronger alignment between trust administration, family values and succession planning. More broadly, it encourages capital to be directed towards sustainable and socially responsible initiatives.

Next steps: a model for other jurisdictions

Bermuda’s reforms show that trust law can evolve to meet contemporary expectations without undermining fiduciary responsibility and sets a precedent for industry best practice. The reforms set a precedent for fiduciary law that is both forward-looking and grounded in industry best practice. STEP continues to work with policymakers worldwide to modernise trust legislation and support values-aligned investment. We would like to speak to you if you would like to discuss this initiative in your jurisdiction. If you are interested, please contact STEP’s policy team.

Find out more about our policy initiative to improve trust legislation in key jurisdictions

Emily Deane TEP, Technical Counsel & Head of Government Affairs at STEP