4AF2F1Exercise of power of investment: duties of trustee
1
Before exercising the power of investment under section 4(1)(ea) of this Act, a trustee shall have regard toβ
a
the suitability to the trust of the proposed investment, and
b
the need for diversification of investments of the trust, in so far as is appropriate to the circumstances of the trust.
2
Before exercising that power of investment, a trustee shall (except where subsection (4) applies) obtain and consider proper advice about the way in which the power should be exercised.
3
When reviewing the investments of the trust, a trustee shall (except where subsection (4) applies) obtain and consider proper advice about whether the investments should be varied.
4
If a trustee reasonably concludes that in all the circumstances it is unnecessary or inappropriate to obtain such advice, the trustee need not obtain it.
5
In this section, β
proper advice
β means the advice of a person who is reasonably believed by the trustee to be qualified by the person's ability and practical experience of financial and other matters relating to the proposed investment.