IFSCA Bars Multiple Fiduciary Roles in Same Scheme

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  • Last Updated on 14 April, 2026

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IFSCA fiduciary role

Circular F. No. IFSCA-IF-10PR/7/2024-Capital Markets/10042026, Dated 10.04.2026

The International Financial Services Centres Authority (IFSCA) has issued a clarification on governance of schemes in IFSCs, mandating strict segregation of fiduciary roles to strengthen oversight and prevent conflicts of interest.

1. Segregation of Fiduciary Functions

The clarification provides that:

  • Fund Management Entities (FMEs) shall not appoint the same fiduciary to perform multiple roles for a single scheme
  • Specifically, a fiduciary cannot simultaneously provide:
    1. Fund administration
    2. Valuation services
    3. Audit services
    4. Financing services

2. Objective of the Clarification

The measure aims to:

  • Prevent conflict of interest
  • Ensure independent functioning of key service providers
  • Strengthen governance and investor protection

3. Compliance Requirement for Existing Schemes

  • Existing schemes must align with the new requirements
  • The deadline for compliance is 30th September 2026

4. Regulatory Impact

The clarification ensures:

  • Greater transparency and accountability
  • Improved checks and balances in fund operations
  • Enhanced trust in IFSC fund structures

5. Conclusion

This clarification reinforces IFSCA’s focus on robust governance standards, ensuring that fiduciary roles remain independent and conflict-free, thereby safeguarding investor interests in IFSC schemes.

Click Here To Read The Full Circular

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied