7Duty of trustee

7 Duty of trustee

[Section 7 Amended by 25 Geo. V No. 78 ][Section 7 Substituted by No. 64 of 1997, s. 4, Applied:01 Apr 1998]

(1)  Subject to any provision to the contrary in an instrument creating a trust, a trustee, in exercising a power of investment –

(a) if the trustee's profession, business or employment is or includes acting as a trustee or investing money on behalf of other persons, must exercise the care, diligence and skill that a prudent person engaged in that profession, business or employment would exercise in managing the affairs of another person; or

(b) if the trustee is not engaged in such a profession, business or employment, must exercise the care, diligence and skill that a prudent person of business would exercise in managing the affairs of another person.

(2)  A trustee, in exercising a power of investment, must comply with any provision of the instrument creating the trust that is binding on the trustee and requires the obtaining of a consent or an approval or a compliance with any direction with respect to trust investments.

(3)  Subject to the instrument creating the trust, a trustee must, at least once in each year, review the performance, individually and as a whole, of the trust investments.