Exoneration clause meaning

Forms of protection Trustees may limit personal liability through the following forms of protection: exoneration clauses indemnity clauses insurance statute Exoneration clauses When effective and applicable, an exoneration clause relieves a trustee from personal liability for acts or omissions that fall within its scope and wording. Trustees should seek the broadest possible drafting of any exoneration clause to maximise coverage. Exoneration clauses are interpreted strictly and read narrowly. The onus rests with trustees to demonstrate that the particular act or omission is encompassed by the clause...

Original news Mr K (CAS-44560-Q1C8)—12 September 2025 Summary The Pensions Ombudsman upheld a complaint concerning a scheme’s inadequate due diligence on a high-risk investment. The professional trustee was found to have breached both common law and statutory duties by committing funds to storage pods and airport parking. As the investments lacked diversification and were overly speculative, no reasonable trustee would have proceeded. The determination underscores that a professional trustee can be accountable for investment losses even where the member was heavily engaged in making the decision... What were the facts? Mr K was a member of the Blick-Horsham Limited Executive Pension Scheme (the Scheme), a small self-administered scheme (SSAS). The Scheme’s trustees were Rowanmoor Trustees Limited (RTL) and Mr K. He proposed investing in storage pods and airport parking via Store First Limited (Store) and Park First Limited (Park). In February 2015, RTL warned Mr K that the proposed investments featured a two-year break clause and advised him to consider how a replacement tenant might be...

Southern Gas Networks plc v Thames Water Utilities Ltd [2018] EWCA Civ 33, [2018] All ER (D) 132 (Jan) What are the practical implications of this case? The key takeaway for advisers to suppliers is that common law causes of action may endure alongside the detailed statutory scheme governing undertakers. That remains so even when a dedicated statutory liability clause exists that could yield a remedy on identical facts. Whether the common law persists is ultimately a matter of construing the specific provisions in play. Clauses that negate exoneration can assist, but they are not essential. The court’s reasoning draws on a well-established line of dicta: mere differences between the statute and the common law do not suffice; to displace the common law, the court must identify an ‘inconsistency’ or ‘incompatibility’ between them. For instance, if the common law would confer a more expansive remedy than the statute, allowing it to continue would cut across the statute’s purpose in imposing tighter limits, and must therefore be taken as not...

Other protections available to trustees Notwithstanding frequent cautions about the burdens of trusteeship, the sanctions of the Pensions Regulator and the risks inherent in the role, pension trustees usually benefit from robust protections grounded in statute and in their scheme’s governing documents. These include: Trustee Act 1925, s 61, allowing a trustee to be relieved of liability for breach of trust where they have acted honestly and reasonably and ought fairly to be excused Trustee Act 1925, s 27 (TA 1925), which, via a notification process, protects trustees against unknown beneficiaries on a scheme wind-up Exoneration clauses in the trust deed and rules, exempting trustees from personal liability for specified acts or omissions Indemnity clauses in the trust deed and rules, ensuring that particular liability claims against trustees are met by another party or source Indemnities granted by the plan sponsor Where trusteeship is conducted through a company, an additional layer of protection applies under the Companies Act 2006....

1 Gift of property 1.1 I leave, free of tax, my property described as [ full address and description of the property ] or any other property that I own as my main residence at the time of my death (the Property), together with all furniture, soft furnishings and items of domestic, household or garden use or ornament in or around the Property (the Contents), to my Trustees on the following trusts. 1.2 In this clause, the Property Fund shall refer to the Property and the Contents and all property from time to time standing in their place...

To choose solely those investments that the Trustees, at their unfettered discretion, deem ethically permissible, without incurring liability for any loss whatsoever that may thereby arise to the Trust Fund...

I leave [ free of tax ] to [ full name of beneficiary ] of [ beneficiary’s full address ] my business of [ nature of business ] [ also called [ name of business or trading name where relevant ] ] at [ full address(es) of where business carried on ] together with all assets: all goodwill, machinery, plant, equipment, stock, vehicles and other effects; all debts due and monies credited at any bank or elsewhere, and the benefit of all contracts; any freehold or leasehold premises it uses [ free of charges, to be cleared free of tax from the residue under [ clause 7 ] of this Will, including costs and interest accrued before redemption ] but subject to [ paying any such charges and to ] the beneficiary assuming all business liabilities; where leasehold property is included they must pay rent, comply with the tenant’s covenants and conditions, and keep my estate indemnified against all liability (before or after my...