PART IVAGENTS NOMINEES AND CUSTODIANS

Review of and liability for agents, nominees and custodians, etc.

22Review of agents, nominees and custodians, etc.

1

While the agent, nominee or custodian continues to act for the trust, the trustees—

a

must keep under review the arrangements under which the agent, nominee or custodian acts and how those arrangements are being put into effect,

b

if circumstances make it appropriate to do so, must consider whether there is a need to exercise any power of intervention that they have, and

c

if they consider that there is a need to exercise such a power, must do so.

2

If the agent has been authorised to exercise asset management functions, the duty under subsection (1) includes, in particular—

a

a duty to consider whether there is any need to revise or replace the policy statement made for the purposes of section 15,

b

if they consider that there is a need to revise or replace the policy statement, a duty to do so, and

c

a duty to assess whether the policy statement (as it has effect for the time being) is being complied with.

3

Subsections (3) and (4) of section 15 apply to the revision or replacement of a policy statement under this section as they apply to the making of a policy statement under that section.

4

“Power of intervention” includes—

a

a power to give directions to the agent, nominee or custodian;

b

a power to revoke the authorisation or appointment.