Abstract “Invisibles clauses” are found in the contractual terms and conditions of many banks’ account-opening documents. However, their ubiquitousness ought not to be met with complacency. Invisibles clauses may permit a custodian bank to favour revenue-generating products, and retain benefits obtained in providing such products, which may not be in the customer’s interest. This is not always consistent with a trustee’s duty to act with single-minded loyalty towards its beneficiaries. This paper examines the full extent of the threat these clauses pose to a trustee’s fiduciary obligations through the lens of recent high-profile judgments in both England and Singapore.
Avis et al. (Fri,) studied this question.