1. Name

These Regulations are the AIFC Trust Regulations 2019.

2. Commencement

These Regulations commence on 7 August 2019.

3. Legislative authority

These Regulations are adopted by the Governor under paragraph 1 of article 3 and article 4 of the Constitutional Statute and subparagraph 3-1 of paragraph 9 of the Management Council Resolution on AIFC Bodies.

4. Application of these Regulations

(1) These Regulations apply within the jurisdiction of the AIFC.

(2) These Regulations apply to all AIFC Trusts, other than Trusts to which the Collective Investment Scheme Rules apply, and to Foreign Trusts in respect of all acts, omissions or transactions occurring in the AIFC, whenever the Trust was created.

5. Interpretation

Schedule 1 contains:

• (a) interpretative provisions which apply to these Regulations; and
• (b) a list of defined terms used in these Regulations.

6. Default and mandatory rules

(1) Except as otherwise provided in the terms of an AIFC Trust, these Regulations govern the duties and powers of the Trustee, relations among Trustees and the rights and interests of a Beneficiary.

(2) The terms of an AIFC Trust prevail over any provision of these Regulations, except:

1. (a) the requirements for creating a Trust;
2. (b) the duty of a Trustee to act in good faith and in accordance with the purposes of the Trust;
3. (c) the requirement that a Trust and its terms be for the benefit of its Beneficiaries, and that the Trust have a purpose that is lawful, not contrary to public policy in the AIFC, and possible to achieve;
4. (d) the power of the Court to modify or terminate a Trust in accordance with these Regulations;
5. (e) the effect of a Protective Trust as provided in Part 6;
6. (f) the power of the Court under section 53 (Remuneration of a Trustee) to adjust a Trustee’s compensation specified in the terms of the Trust which is unreasonably low or high;
7. (g) the effect of an exculpatory term under section 74 (Exculpation or insurance of Trustee);
8. (h) the rights under section 77 (Protection of persons dealing with Trustees) of a person other than a Trustee or Beneficiary;
9. (i) periods of limitation for commencing a judicial proceeding;
10. (j) the power of the Court to take such action and exercise such jurisdiction as may be necessary in the interests of justice; and
11. (k) the jurisdiction and powers of the Court under sections 16 (Jurisdiction of the Court) and 17 (Application to and certain powers of the Court).

7. Common Law and Principles of Equity

(1) The common law of Trusts and principles of equity applicable in England and Wales supplement these Regulations, except to the extent modified by these Regulations or any other AIFC Act or by the Court.

(2) The statute law of England and Wales applicable to Trusts does not, except to the extent it is replicated in these Regulations, apply in the AIFC.