Jonathan Djanogly MP, the Parliamentary Under-Secretary of State for Justice, recently announced that the Government is to accept the recommendations of the Law Commission, made back in 2006, on trustee exemption clauses.

The 2006 report recommended that regulatory and professional bodies should adopt a non-statutory rule of practice governing the disclosure and explanation of clauses in trust instruments which seek to limit or exclude liability for negligence. The report suggests that paid trustees should take reasonable steps to ensure that persons creating the trust understood the meaning and effect of such clauses before including them in trust instruments.

In its statement, the Ministry of Justice acknowledged that this rule of practice had already been widely adopted in the industry, but said that the Government would be ‘promoting further uptake by writing directly to the relevant regulatory and professional bodies’.