Financial Liverpool 24th January 2019

Paul gave an insightful presentation that helped to obtain understanding of the obligations of Trustees when it comes to investments and the challenges Trustees face.
Paul began the presentation by explaining the different types of Trustees; lay and professional, and where advisers sit in this.
He then went on to explain the duties of a trustee, giving us an in depth understanding of the different tasks a trustee must undertake at different times.
Paul explained that investment duties were written down in law, under the Trustee Act 2000 (separate acts for Scotland and Northern Ireland). The act covers the investment powers that Trustees have and is broadly formed from case law.
The investment criteria for a Trust is different to a client in that a Trustee must think in terms of the suitability of the kind of investment and then particular investment for the intended beneficiary and any future beneficiary. We as advisers to Trustees need to think not in the attitude to risk of the Trustees but to the attitude to risk of beneficiaries, their tolerances and capacity for loss as well as a need for capital and / or income.
Paul explained that this further using examples from case law, as far back as 1886, which contained some interesting language! But all very relevant for today.
Paul then went on to explain the investment process itself and how a Trust should have an investment policy, which would contain the policy to which the Trustees must follow and that would help guide advisers.
To end the presentation, Paul ran through current investment challenges – namely the recent market volatility, the need for diversification and the benefits of this in terms of risk and return.