24. Trustee’s covenants in respect of governing rules
Where the governing rules of a registered scheme do not expressly contain covenants by the approved trustee of the registered scheme to the same, or substantially the same, effect as the implied covenants specified in Schedule 5 as to the discharge of the fiduciary duties of approved trustees, the performance of their functions and the exercise of their powers in relation to registered schemes, those governing rules shall apply as if the implied covenants in that Schedule were expressly contained therein and any contrary provision in those governing rules purporting otherwise shall be void and of no effect.
25. Duty of corporate trustees’ directors
The covenants by an approved trustee whether expressed in the governing rules of a registered scheme or implied under section 24 shall, in the case of an approved trustee, being a corporate trustee, be construed to require each of the directors (however described) of that corporate trustee to exercise a reasonable degree of care and diligence to ensure that the approved trustee carries out those covenants and complies with any standards that may be specified in the regulations referred to in section 21(4) in the same manner as if those directors were bound personally by those governing rules, covenants and standards.
26. Limit on indemnity
A provision in the governing rules of a registered scheme is void and of no effect in so far as it purports to exempt an approved trustee from, or purports to indemnify that approved trustee against—
- (a) liability for breach of trust where the approved trustee—
- (i) fails to act honestly in a matter concerning the registered scheme; or
- (ii) intentionally or recklessly fails to exercise, in relation to a matter affecting that registered scheme, the degree of care and diligence required of a trustee in exercising powers (whether express or implied) in relation to a trust; or
- (b) liability for a fine or penalty imposed by law.
27. Duties of approved trustees to comply with regulations
(1) An approved trustee shall comply with such duties in relation to a registered scheme as may be imposed in regulations made under section 46 and those regulations may provide for the imposition of financial penalties in the event of non-compliance.
