Understanding trusts and trustee investment duties

Check your answers

Test your knowledge

1. Trustees almost certainly have:

a. Restrictive investment powers

b. Wide investment powers

c. Investment powers limited to UK assets

d. No need to invest the trust fund

2. When investing, trustees:

a. Must always take proper advice

b. Cannot spend money on taking advice

c. Are required to take proper advice unless it’s unnecessary or inappropriate

d. Can only take advice from a solicitor or accountant

3. If trustees are required to pay income to A for life and thereafter the capital passes to B&C, then this is:

a. A Bare Trust

b. An interest in possession trust

c. A discretionary trust

d. A type of trust that no longer exists

4. Which of the following may be a benefit of multi asset investing?

a. Diversification

b. Higher return

c. Lower risk than cash

d. Less chance of negative return

CPD certificate

Before collecting your certificate please take a moment to provide us feedback on this session, please email prudential.distribution.team@prudential.co.uk

Complete the form below and we’ll email your CPD confirmation to you. Please use the email address that you would usually use when making contact with us.

"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at 5 Central Way, Kildean Business Park, Stirling, FK8 1FT. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority. Prudential Distribution Limited is part of the same corporate group as the Prudential Assurance Company Limited. The Prudential Assurance Company Limited and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc which is a holding company registered in England and Wales with registered number 11444019 and registered office at 10 Fenchurch Avenue, London EC3M 5AG, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority. These companies are not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.