SCHEDULES
SCHEDULE 1 Application of duty of care
Investment
1
The duty of care applies to a trustee—
a
when exercising the general power of investment or any other power of investment, however conferred;
b
when carrying out a duty to which he is subject under section 4 or 5 (duties relating to the exercise of a power of investment or to the review of investments).
Acquisition of land
2
The duty of care applies to a trustee—
a
when exercising the power under section 8 to acquire land;
b
when exercising any other power to acquire land, however conferred;
c
when exercising any power in relation to land acquired under a power mentioned in sub-paragraph (a) or (b).
Agents, nominees and custodians
3
1
The duty of care applies to a trustee—
a
when entering into arrangements under which a person is authorised under section 11 to exercise functions as an agent;
b
when entering into arrangements under which a person is appointed under section 16 to act as a nominee;
c
when entering into arrangements under which a person is appointed under section 17 or 18 to act as a custodian;
d
when entering into arrangements under which, under any other power, however conferred, a person is authorised to exercise functions as an agent or is appointed to act as a nominee or custodian;
e
when carrying out his duties under section 22 (review of agent, nominee or custodian, etc.).
2
For the purposes of sub-paragraph (1), entering into arrangements under which a person is authorised to exercise functions or is appointed to act as a nominee or custodian includes, in particular—
a
selecting the person who is to act,
b
determining any terms on which he is to act, and
c
if the person is being authorised to exercise asset management functions, the preparation of a policy statement under section 15.
Compounding of liabilities
4
The duty of care applies to a trustee—
a
when exercising the power under section 15 of the Trustee Act 1925 to do any of the things referred to in that section;
b
when exercising any corresponding power, however conferred.
Insurance
5
The duty of care applies to a trustee—
a
when exercising the power under section 19 of the Trustee Act 1925 to insure property;
b
when exercising any corresponding power, however conferred.
Reversionary interests, valuations and audit
6
The duty of care applies to a trustee—
a
when exercising the power under section 22(1) or (3) of the Trustee Act 1925 to do any of the things referred to there;
b
when exercising any corresponding power, however conferred.
Exclusion of duty of care
7
The duty of care does not apply if or in so far as it appears from the trust instrument that the duty is not meant to apply.