Ian Muirhead: Risk assessment for trustees

The Trustee Act 2000 lays down standard criteria for the investment of trust funds - first, the suitability to the trust of investments of the same kind as any particular investment proposed to be made or retained and of that particular investment as an investment of that kind; and, second, the need for diversification of investments of the trust, in so far as is appropriate to the circumstances of the trust. Meanwhile COBS 9.2.2 requires that, in determining the suitability of investment recommendations, regard should be had to the ability of the client to bear any related investment ri...