Bermuda Modernises Company and Trust Laws to Reflect Global Best Practices in Responsible Wealth Stewardship

The passage of the Trustee Amendment Act 2025 and the Benefit Entities Act 2025 opens the door for wealth and business owners to build long term resilience through sustainable business and responsible investing in trusts

HAMILTON, Bermuda, Oct. 16, 2025 /PRNewswire/ -- Today, Bermuda announced the forward-facing evolution of two pillars of its economy—company law and trust law—to empower responsible stewards of wealth in the jurisdiction. The Benefit Entities Act 2025 and Trustee Amendment Act 2025 have been signed into law, establishing Bermuda as the first offshore jurisdiction to pioneer this type of legislation, the result of collaborative efforts between industry and bipartisan government support.

Both pieces of legislation are opt-in regimes that enable companies and trustees to operate sustainably and pursue public benefit alongside financial performance, offering greater clarity to stewards of capital. Wealth owners and business leaders can now structure trusts and corporate entities in Bermuda that reflect a broader set of priorities, including financial growth, sustainability, and intergenerational legacy. The legislative updates passed due to the proactive collaboration of STEP Bermuda, the Bermuda Association of Licensed Trustees, the Bermuda Business Development Agency (BDA), and the BDA's Trust Law Reform Committee and Legal Focus Group, the Bermuda Monetary Authority, with technical legal support from the General Counsel, B Lab, Harbottle & Lewis LLP, London, XXIV Old Buildings, the Bermuda Government and other industry professionals.

"The enactment of these two laws further strengthens the business environment in Bermuda and shows the efficacy of public-private collaboration in implementing meaningful change," said the Hon. Jason Hayward JP MP, Minister of Economy and Labour. "They were crafted to provide clarity for trustees, settlors, beneficiaries and founders of companies and family offices seeking to operate and invest responsibly by removing legal uncertainty and establishing a framework that supports both financial stewardship and broader purpose. This is a pragmatic step forward that strengthens Bermuda's position as a trusted jurisdiction for modern wealth planning and corporate governance."

The Trustee Amendment Act 2025, which will commence immediately, modernises Bermuda's fiduciary framework, offering trustees greater clarity and legal confidence in adopting responsible investing approaches. It affirms that, in addition to trustees' fiduciary duty to assess the impact of material non-financial factors on financial performance, trustees may also consider the views and wishes of settlors and beneficiaries on the impact of investments on the broader society and environment, reinforcing Bermuda's role as a premier jurisdiction for sustainable long-term planning and values-driven wealth structuring.

The Benefit Entities Act 2025, which will come into effect before the end of the year, introduces a new opt-in corporate structure that formally weaves together the commercial objectives of a for-profit company with a commitment to operate sustainably and provide an optional public benefit. This model allows companies to pursue profit while embedding responsible business practices and purpose into their governance. Bermuda's benefit entities offer a transparent framework for investors seeking financial performance while also prioritising sustainable operations.

"These legislative reforms reinforce Bermuda's position as a global leader for families focused on responsible long term wealth preservation and growth, succession planning, as well as for companies seeking to operate sustainably, with purpose and accountability," said Marquis Caines, Business Development Manager for Private Wealth and Asset Management at the BDA. "We've always been a forward-looking jurisdiction, and passing this legislation keeps us at the forefront of global business and investing practices by providing a framework that reflects the priorities of many of today's wealth holders and business owners."

The two laws are designed to strengthen Bermuda's business ecosystem by providing more protection and clear guidance to trustees and options for wealth and business owners who wish their enterprises to operate sustainably and with a public benefit. By instituting a clearer system with greater options, Bermuda opens the door for a new inward flow of capital. These laws will also keep Bermuda competitive with other nations by creating a clear runway for responsible investing by fiduciaries and sustainable business structures.

By providing clear, fit-for-purpose frameworks, Bermuda is signaling both leadership and adaptability—qualities that matter to clients choosing a jurisdiction for long-term financial stewardship.

About the BDA
The Bermuda Business Development Agency (BDA) is an independent public-private partnership dedicated to attracting and retaining business in Bermuda. Through strategic business development and collaboration with key stakeholders, the BDA promotes Bermuda as a premier investment jurisdiction.

SOURCE Bermuda Business Development Agency