Trustee Investment Portfolios - Do any of your clients have stockbroking portfolios?

HSBC Private Bank is closing its stockbroking business from 1st October 2008 and is asking clients to make alternative arrangements.

A list of alternative investment managers has been provided, but the responsibility for arranging the transfer rests with the client.

If you are having to transfer Portfolios from HSBC Private Bank, this is an ideal time to review not only the management, but also recent changes to Trust taxation and future Portfolio strategy / benchmarks.

Bennett Brooks Independent Financial Planning provide specialist advice in this area and can help Trustees meet their obligations under the Trustee Act 2000:

• S4(2) “Keeping Investment under Review” 
  "a trustee with a power of investment must undertake periodic reviews of the investments held by the trust" (Nestle v National Westminster Bank) 
   
   
• S5 “Taking Advice”
  S5 of the Trustee Act requires Trustees, when considering the exercise of a power of investment or carrying out a review of the trust investments, to obtain and consider proper advice so as to ensure that account is taken of the standard investment criteria. An exception is permitted in circumstances where the trustees consider that taking advice would be unnecessary or inappropriate e.g. where the investment is so small that the cost of advice would be disproportionate or where the trustees themselves possess relevant investment skills.
   
  "Proper advice" is defined as meaning : "the advice of a person who is reasonably believed by the trustee to be qualified to give it by his ability in and practical experience of financial and other matters relating to the proposed investment"

For further information contact Alan McLaughlin (Director) on 0845 009 6310.