3.—(1) The duty of care applies to a trustee—
(a)when entering into arrangements under which a person is authorised under section 11 to exercise functions as an agent;
(b)when entering into arrangements under which a person is appointed under section 16 to act as a nominee;
(c)when entering into arrangements under which a person is appointed under section 17 or 18 to act as a custodian;
(d)when entering into arrangements under which, under any other power, however conferred, a person is authorised to exercise functions as an agent or is appointed to act as a nominee or custodian;
(e)when carrying out his duties under section 22 (review of agent, nominee or custodian, etc.).
(2) For the purposes of sub-paragraph (1), entering into arrangements under which a person is authorised to exercise functions or is appointed to act as a nominee or custodian includes, in particular—
(a)selecting the person who is to act,
(b)determining any terms on which he is to act, and
(c)if the person is being authorised to exercise asset management functions, the preparation of a policy statement under section 15.