The Trustee Act 2000 introduced a statutory duty of care upon trustees when exercising their powers of investment. In particular, trustees must seek special knowledge and experience. We can help trustees fulfil these obligations with confidence and peace of mind using a range of appropriate investment solutions.
Recent changes in taxation may mean that current investments are less attractive or in some cases even inappropriate. Trustees often need professional advice on a wide range of issues not just investment strategies. For example taxation, risk and reward, ongoing legal obligations and responsibilities, whether that be on behlf of a charity, family settlement or pension scheme.
The Act states trustees must:
Exercise a ‘duty of care’
Consider the tax efficiency
Ensure investments sufficiently diversified
Consider size and risk profile of trust
It is a requirement for trustees to:
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Document all decisions
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Have a clear audit trail
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Diversification of the trust’s assets by asset class and management group
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Maximise tax efficiency by using product wrappers
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Regular low maintenance reviews - are the investments still suitable?
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Reduce Investment Risk
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Act with diligence and integrity
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Avoid conflicts of interest
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Consider expenses.
