act personally (with the exception of some limited permitted delegation powers).limit their discretion to act in the future.keep proper records and accounts for the trust and keep the beneficiaries informed.not make a personal profit from their trusteeship, unless they are authorised to do so.avoid being in a position where their own personal interests conflict.act impartially between the beneficiaries.act in the best interests of the beneficiaries.
This means that a trustee is legally and morally bound to the beneficiaries of the trust. (Non-statutory) fiduciary duties: In addition to the statutory duty of skill and care, a trustee has a fiduciary duty. It requires trustees to act with reasonable care and skill in all circumstances. The Trustee Act 2000 imposes a statutory duty of skill and care on trustees carrying out certain functions, This duty of care can be excluded or modified by express provisions in the trust document. Statutory duty of skill and care: All trustees have a duty to manage and protect the trust assets diligently and prudently. In short, a trustee’s duties can be broken down into two key areas: In this case, it appears that the Maestro Fund was set up as a trust and appointed Old Park Capital Ltd as its asset manager, which assumed the role of trustee. The choice of trustees is important, as they control the trust’s assets. In general, the trustees may be one or more individuals or a company or corporation. Every trust must have at least one trustee. Trustees are often appointed by way of deed or some other document which created the trust. When a trust is established, trustees are appointed to manage the trust for the beneficiaries. Trustees, unlike company directors, deal with the property themselves, not on behalf of (or authorised by) the trust. While the case has yet to be concluded, it will centre on issues such as the relationship between a trust and its trustees, the trustees’ duties and how these can be breached.Ī trust is not a legal entity. The fund has also sued the former Chief Operating Officer for his alleged breach of duty. The lawsuit alleged that Old Park Capital Ltd invested $5 million of the fund in "extremely high risk" unsecured debt securities - in breach of its investment agreement and strategy – and, in particular, that the Chief Investment Officer and co-founder of Old Park Capital Ltd, Bruno Pannetier, made the investment “in his self-interest” in fraudulent breach of trust, as a trustee of the assets of the funds. The fund bringing the lawsuit was based in the Cayman Islands and was created in November 2013. Old Park Capital Maestro Fund Ltd (in liquidation) is a fund that was managed by Old Park Capital Ltd, an asset manager. The proceedings were prompted by allegations that its funds had been put into high-risk investments in a fraudulent breach of trust and fiduciary duty. Last month, a futures fund which is now in liquidation launched proceedings in the High Court against its asset manager and its officers. Syed Rahman of Rahman Ravelli examines what constitutes breach of trust.
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