HC Deb 05 July 1995 vol 263 cc444-5

Amendments made: No. 38, in page 21, line 13, leave out from beginning to 'except' in line 17 and insert— '(2) Any discretion of the trustees of a trust scheme to make any decision about investments—

  1. (a) may be delegated by or on behalf of the trustees to a fund manager to whom subsection (3) applies to be exercised in accordance with section 36, but
  2. (b) may not otherwise be delegated'.

No. 39, in page 21, line 28, at end insert— 'or the person who made the delegation on their behalf has taken all such steps as are reasonable to satisfy himself.

No. 40, in page 21, line 29, leave out 'he' and insert 'the fund manager'.

No. 41, in page 21, line 33, leave out subsection (5) and insert — '(5) Subject to any restriction imposed by a trust scheme —

  1. (a) the trustees may authorise two or more of their number to exercise on their behalf any discretion to make any decision about investments, and
  2. (b) any such discretion may, where giving effect to the decision would not constitute carrying on investment business in the United Kingdom (within the meaning of the Financial Services Act 1986), be delegated by or on behalf of the trustees to a fund manager to whom subsection (3) does not apply to be exercised in accordance with section 36;
but in either case the trustees are liable for any acts or defaults in the exercise of the discretion if they would be so liable if they were the acts or defaults of the trustees as a whole. ( ) Section 33 does not prevent the exclusion or restriction of any liability of the trustees of a trust scheme for the acts or defaults of a fund manager in the exercise of a discretion delegated to him under subsection (5)(b) where the trustees have taken all such steps as are reasonable to satisfy themselves, or the person who made the delegation on their behalf has taken all such steps as are reasonable to satisfy himself—
  1. (a) that the fund manager has the appropriate knowledge and experience for managing the investments of the scheme, and
  2. (b) hat he is carrying out his work competently and complying with section 36;
and subsection (2) of section 33 applies for the purposes of this subsection as it applies for the purposes of that section'.—[Mr. Hague.]

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