Powers of investment

(1) Subject to the terms of the trust and to the provisions of this Act, a trustee may invest any money requiring investment in any investment or property of whatsoever nature and wheresoever situated and whether producing income or not and whether involving any liability or not and upon such security, if any, as the trustee shall in his absolute discretion think fit as if the trustee were the absolute owner thereof. Schedule I. (2) Where the terms of a trust or any other instrument provide that any money requiring investment shall only be invested in “authorised trustee investments”, or any similar expression, then the money shall be invested only in such investments as are specified in Schedule I. Schedule I. (3) The terms of a trust may provide that Schedule I shall apply to the trust with such modifications as are specified by the terms of the trust. Schedule I. (4) The Attorney General may by Order published in the Gazette amend the list of authorised trustee investments in paragraph 1 of Schedule I. 31 (5) A trustee is not liable for breach of trust by reason only of continuing to hold an investment which has ceased to be an investment authorised by the terms of the trust or by the general law. (6) Subject to the terms of the trust, in selecting investments a trustee or (as the case may be) any investment advisor or other person to whom the trustee has delegated the management of the trust property shall have regard– (a) to the need for diversification of investments in the trust, in so far as is appropriate to the circumstances of the trust; and (b) to the suitability to the trust of the investments proposed. (7) Subject to the terms of the trust, before investing money in any investment, a trustee shall consider whether he should obtain appropriate advice as to whether the investment is suitable and satisfactory and, if he considers that the obtaining of such advice is necessary, shall obtain and consider such advice accordingly. (8) Subject to the terms of the trust, a trustee shall determine whether and at what intervals he should obtain appropriate advice as to whether the existing investments of the trust are suitable and satisfactory and, if he considers that the obtaining of such advice is necessary, shall obtain and consider such advice accordingly. (9) For the purposes of the two foregoing sub-sections, advice is appropriate if it is the advice of a person who is reasonably believed by the trustee to be qualified to give such advice; and such advice may be given by a person notwithstanding that he gives it in the course of his employment, including employment with a trustee of the trust. 32