Trustee Investment
In February 2001 the Trustee Act 2000 came into force formalising the duties of Trustees. However, even now it seems that many trustees are unaware of the new responsibilities imposed on them.
The main responsibilities are:
- To ensure that trust investments are suitable
- To ensure that investments are sufficiently diversified
- To review portfolios
- To take advice
Although the Trustee Act suggests no timescales for ensuring these duties are met, the principles of the "standard investment criteria" are based on the principles of the rulebook of the Financial Services Authority. This states that those responsible for reviewing portfolios must do so at least annually. It is clear that trustees must, at the very least, have an annual review mechanism in place.
The key issue is to take advice and review the suitability of trust assets in terms of:
- Meeting income & Growth Objectives
- Risk
- Diversification
- Taxation costs
- Transaction costs
- Asset special features e.g. capital guarantees
LEBC Group is both knowledgeable and experienced in conducting audits. Our audit process can be applied to both new trust settlements and to existing trusts.
Litigation Settlement Advice
Clients in receipt of funds following successful litigation are more than likely to need investment advice. This will allow them to establish an investment portfolio of suitable assets to meet their current and future needs.