Technology | Crypto and the trustee prohibition on speculative investments
Summary Points.
The law imposes a duty on trustees to avoid investing trust funds in speculative or hazardous investments. Increased interest in the use of crypto assets as an investment highlights the important question: can trustees invest trust funds in crypto assets?
On face value, it could seem that trustees are restricted from making such investments, but a closer analysis suggests that it might be lawful. The legal framework requires careful analysis of each situation's specific facts, with particular attention to the process undertaken rather than the investment type alone.
For trustees grappling with these complex questions, the intersection of trust law principles with innovative investment opportunities requires specialist legal guidance to ensure both compliance and sound decision-making.