Consultation Paper on the proposed replacement of the current Fiduciary Rules, 2020 by the new Fiduciary Rules, 2021 (April 2021)

Summary

This is a GFSC consultation paper seeking industry feedback on a proposed new set of Fiduciary Rules, 2021, which would replace the current Fiduciary Rules, 2020 and the Regulation of Fiduciaries (Annual Return) Regulations, 2017. The paper explains the rationale for several proposed changes and poses specific consultation questions (Q1 to Q8) for respondents; it does not itself impose binding requirements, since the new rules are still in draft form.

• One-off re-categorisation: Joint Licensees would be automatically re-categorised as Secondary Licensees on enactment of the 2020 Fiduciaries Law and the new rules, unless the Commission is notified otherwise beforehand.
• Annual returns: The Annual Return Regulations would be repealed and replaced with equivalent provisions in new Rule 2.4A, leaving the substance of annual return filing requirements largely unchanged.
• PFL advertising restrictions removed: The Regulation of Fiduciaries (Fiduciary Advertisements and Annual Returns) Regulations, 2012 would be repealed, removing the prohibition on advertising by Personal Fiduciary Licensees (PFLs), aligning them with other licence categories, though the general advertisement and client communication rule (Rule 3.3) would still apply to PFLs.
• Auditor's report standards: The rules would be revised to formally accept audit reports prepared under International Auditing and Assurance Standards Board (IAASB) standards, in addition to the currently required ISA (UK) standards.
• PFL financial reporting: PFLs would be required to provide particulars of their financial position to the Commission annually as part of their Annual Return, aligning rules with current practice.

The draft new Fiduciary Rules, 2021 are attached as a consolidated version (with Commission guidance) and as a tracked-changes version showing amendments from the current rules and guidance. Stakeholders are invited to comment on each proposed change before the rules are finalised.

Applies to

licensed fiduciaries, primary fiduciary licensees, secondary fiduciary licensees, personal fiduciary licensees (PFLs), joint licensees, Trust Service Providers, Corporate Service Providers, Pension Service Providers, Foundation Service Providers