The IFSCA has clarified that under the IFSC (Fund Management) Regulations, 2025, Fund Management Entities (FMEs) are required to appoint fiduciaries which includes trustees, board of directors, or designated partners depending on whether a scheme is set up as a trust, company, or LLP.
It is further emphasized that such fiduciaries must comply with the Code of Conduct prescribed in the Third Schedule and maintain high standards of service, due diligence, and independent judgment. In this context, FMEs have been directed not to appoint an entity acting as fiduciary to a scheme to provide fund administration, valuation, audit, or lending and financing services to that scheme, either directly or through its associates.
FMEs managing schemes already filed with or taken on record by the Authority must ensure compliance with these norms by September 30, 2026.
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