- Latest available (Revised)
- Point in Time (27/02/2007)
- Original (As enacted)
Version Superseded: 10/03/2015
Point in time view as at 27/02/2007.
Trustee Act 2000, Part II is up to date with all changes known to be in force on or before 30 August 2024. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
Changes and effects yet to be applied by the editorial team are only applicable when viewing the latest version or prospective version of legislation. They are therefore not accessible when viewing legislation as at a specific point in time. To view the ‘Changes to Legislation’ information for this provision return to the latest version view using the options provided in the ‘What Version’ box above.
(1)Subject to the provisions of this Part, a trustee may make any kind of investment that he could make if he were absolutely entitled to the assets of the trust.
(2)In this Act the power under subsection (1) is called “the general power of investment”.
(3)The general power of investment does not permit a trustee to make investments in land other than in loans secured on land (but see also section 8).
(4)A person invests in a loan secured on land if he has rights under any contract under which—
(a)one person provides another with credit, and
(b)the obligation of the borrower to repay is secured on land.
(5)“Credit” includes any cash loan or other financial accommodation.
(6)“Cash” includes money in any form.
(1)In exercising any power of investment, whether arising under this Part or otherwise, a trustee must have regard to the standard investment criteria.
(2)A trustee must from time to time review the investments of the trust and consider whether, having regard to the standard investment criteria, they should be varied.
(3)The standard investment criteria, in relation to a trust, are—
(a)the suitability to the trust of investments of the same kind as any particular investment proposed to be made or retained and of that particular investment as an investment of that kind, and
(b)the need for diversification of investments of the trust, in so far as is appropriate to the circumstances of the trust.
(1)Before exercising any power of investment, whether arising under this Part or otherwise, a trustee must (unless the exception applies) obtain and consider proper advice about the way in which, having regard to the standard investment criteria, the power should be exercised.
(2)When reviewing the investments of the trust, a trustee must (unless the exception applies) obtain and consider proper advice about whether, having regard to the standard investment criteria, the investments should be varied.
(3)The exception is that a trustee need not obtain such advice if he reasonably concludes that in all the circumstances it is unnecessary or inappropriate to do so.
(4)Proper advice is the advice of a person who is reasonably believed by the trustee to be qualified to give it by his ability in and practical experience of financial and other matters relating to the proposed investment.
(1)The general power of investment is—
(a)in addition to powers conferred on trustees otherwise than by this Act, but
(b)subject to any restriction or exclusion imposed by the trust instrument or by any enactment or any provision of subordinate legislation.
(2)For the purposes of this Act, an enactment or a provision of subordinate legislation is not to be regarded as being, or as being part of, a trust instrument.
(3)In this Act “subordinate legislation” has the same meaning as in the M1Interpretation Act 1978.
Marginal Citations
(1)This Part applies in relation to trusts whether created before or after its commencement.
(2)No provision relating to the powers of a trustee contained in a trust instrument made before 3rd August 1961 is to be treated (for the purposes of section 6(1)(b)) as restricting or excluding the general power of investment.
(3)A provision contained in a trust instrument made before the commencement of this Part which—
(a)has effect under section 3(2) of the M2Trustee Investments Act 1961 as a power to invest under that Act, or
(b)confers power to invest under that Act,
is to be treated as conferring the general power of investment on a trustee.
Marginal Citations
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: