UK Trustee Act 2000
The Trustee Act has significant implications for trustees in England and Wales. This guide provides brief practical guidance on the investment management issue, but trustees must always take legal advice if they are uncertain as to how the Statute impacts any particular situation.
The Act imposes:
- A new statutory Duty of Care applying to all trustees
- A new and wider General Power of Investment
- New rules on the Appointment of Nominees, Custodians and Investment Managers
Trustees generally are required to consider the following steps:
- Review the trust’s aims and objectives
- Decide which, if any, of their responsibilities are, or should be, delegated to outside agents
- Review the investment management, nominee and custodian agreements to ensure that they comply with the rules.
Trustees of charitable trusts must act in accordance with guidance provided by the Charity Commission on the selection and appointment of custodians and nominees. This includes:
- Checking that the investment advice is provided by someone who is qualified to give it
- Preparing, review and revise as necessary the trust’s investment policy statement
- Reviewing and agreeing the asset allocation with the investment manager in the light of any change in the objectives and investment policy
- Checking that the investment manager has agreed in writing to comply with the investment policy statement and will also comply with any subsequent revisions
- Setting appropriate benchmarks and regular review dates
- Ensuring that there is a record of each stage of the process
