Martin Is the Trustee of a Family Trust, Over Which

question 8

Multiple Choice

Martin is the trustee of a family trust, over which he has powers of investment. The trust includes shares in a variety of companies and cash assets. The trust directs Martin to hold the property on trust for Wendy for life, and on Wendy's death for the Royal Society for the Protection of Birds.
Advise Martin as to which one of the following statements most accurately describes his obligations in making investment decisions

• A) The only consideration to which Martin may have regard in making investment decisions is the financial performance of the investment. He cannot choose not to make investments in firms which conduct activities which may be harmful to birds and other wildlife.
• B) Because the fund will ultimately go to the Royal Society for the Protection of Birds, the only investments which Martin can make are in firms which do not conduct activities which may be harmful to birds and other wildlife.
• C) Martin must consult Wendy before making any decision about investment which has been influenced by avoiding investments in firms which conduct activities which may be harmful to birds and other wildlife.
• D) Martin should have regard both to financial considerations and to the desirability of avoiding investments in firms which conduct activities which may be harmful to birds and other wildlife.

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