9 St John Street
1 Contributions by 9 St John Street Experts
PRACTICE NOTES
Examples of claims against trustees for breach of investment duties include:
delay—where the trustee is slow to deploy trust capital
poor investment choices—e.g. reckless exposure to high-risk, undiversified holdings
unauthorised investments—such as disregarding a mandate to invest only in specified assets
not investing the trust fund as required
Trustees' powers of investment
Trustees should confine themselves to authorised investments. They must consider both the statutory general power of investment and any extra powers, exclusions, or limits set out in the trust instrument.
The “general power of investment” permits trustees to make any kind of investment they could make if absolutely entitled to the trust assets. An exception applies to “investments in land other than in loans secured on land”, which are governed by a separate provision (see “Investments in land” below).
This general power sits alongside powers conferred other than under the Trustee Act 2000 (TrA
Private Client
If you expected to see yourself on this page, click here.
