Suitable Investments

The Trustee Act 2000 sets out a statutory duty relating to Investments, unless the trust has outlined specific provisions with the Trust deed. Trustees are required under the Act to ensure that any existing or proposed investment is suitable.

Consideration needs to be given to:

  • The trust aims,
  • Investment diversification,
  • Costs,
  • Risk profile of the trust fund

Other considerations would include:

  • The investment requirements of the trustees and beneficiaries,
  • An ethical or sociably responsible investment strategy,
  • The tax position of the trust and
  • the underlying tax position of the investment held within the trust.

Under the Trustee Act 2000 trustees are required to regularly review the suitability of trust based investments. The trustees can decide the frequency of reviews, but we recommend that a review is carried out at least annually. For larger trusts, the trustees might consider reviewing the trust assets on a more frequent basis.

The Financial Conduct Authority does not regulate trust advice.