The reference arose as a result of submissions made by individuals to the Attorney General which expressed concern that the investments that were authorised by Part III of the Trustees Act 1962-1978 (WA) were inadequate. The shortcomings related to the ability to preserve the capital of the trust fund in prevailing inflationary circumstances, a situation which could be alleviated if trustees were enabled to take advantage of new forms of investment.
Terms of Reference
The Commission was asked to consider and report on the law relating to trustees’ powers of investment as authorised by the Trustees Act 1962–1978 (WA). This reference was part of a general reference to review the law of trusts and the administration of estates given to the Committee, and was adopted by the Commission upon its inception.
Outcomes
The Public Trustee Amendment Act 1984 (WA) extended the Public Trustee’s power to invest in land. The amendments were in terms that reflected the Commission’s recommendations.
Parliament also established a specialist Trustee Investments Review Committee constituted by members with expertise in the relevant areas of investment and law. The Review Committee substantially adopted the Commission’s recommendations, resulting in the Trustees Amendment Act 1987 (WA).
