Financial Services for Charities
Trustees Duties of Investment
Charity trustees are subject to the duties and responsibilities of the Trustee Act 2000 to make proper decisions about the investment of the trust fund. Like ordinary trusts, every charity has different requirements and objectives, which is why it is so important that guidance is provided on how best to achieve these.
The Trustee Act prescribes a number of safeguards to ensure that the Trustees’ power of investment is exercised responsibly. First, Trustees have a statutory duty of care to act in the best interests of present and future beneficiaries at all times. Secondly, the Act requires the Trustees to have regard to the “standard investment criteria”, to obtain professional advice as to the investments and to review investments from time to time and consider any changes that may be necessary following a review.
The standard investment criteria, in relation to a trust, are:
- the suitability to the trust of the investments, and
- the need for diversification
For further information contact Ruth Dolan, Chartered Financial Planner, on 01227 763939.
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