Private Management Branch
REQUIREMENTS FOR MANAGERS SEEKING TO INVEST
MANAGED PERSONS’ FUNDS
The NSW Trustee and Guardian requires Managers to have regard to the Prudent
Person Principle in the NSW Trustee Act 1925 when making investment decisions
on behalf of the managed person. This requires Managers to exercise the care,
diligence and skill that a prudent person would exercise in managing the affairs of
other persons. In making and implementing investment decisions the Manager is
under a duty to the managed person to distribute the risk of loss by reasonable
diversification of investments.
For estates with $50,000 or more to invest, please go to ‘A’.
For estates with less than $50,000 to invest, please go to ‘B’.
‘A’ - Investments $50,000 or more:
Where the estate’s investments are more than $50,000, Managers should submit a
written proposal to the NSW Trustee and Guardian attaching a financial plan from an
accredited financial adviser, addressing the following criteria (a) The views of the managed person (if possible). If this is not possible it will be
helpful if the Manager can show evidence of the managed person’s practices in
the past,
(b) Where possible, the written views of each member of the immediate family,
(c) The Manager’s recommendation,
(d) The Manager’s proposal is to include a statement that the Manager has
addressed the provisions of Section 14C of the NSW Trustee Act 1925.
For your information the provisions of Section 14C of the NSW Trustee Act 1925 are
as set out below:
1. The purposes of the investment and the needs and circumstances of the
managed person,
2. The desirability of diversifying investments,
3. The nature of, and the risk associated with, existing investments and other
property,
4. The need to maintain the real value of capital or income of the investment,
5. The risk of capital or income loss or depreciation,
6. The potential for capital appreciation,
7. The likely income return and the timing of income return,
8. The length of the term of the proposed investment,
9. The probable duration of the investment (e.g., life expectancy of the managed
person),
10. The liquidity and marketability of the proposed investment during, and on
determination of, the term of the proposed investment,
11. The aggregate value of the estate,
12. The effect of the proposed investment in relation to the tax liability of the estate
(this should also address the effect on pension entitlements),
13. The likelihood of inflation affecting the value of the proposed investment or other
estate property,
14. The costs (including commissions, fees, charges and duties payable) of making
the proposed investment.
The Act requires Managers to obtain and consider independent and impartial
investment advice and Managers are authorised and indeed encouraged to do
so.
Managers may wish to consult their own financial advisers or to consult NSW
Trustee and Guardian’s in-house financial planners.
‘B’ - Investments less than $50,000
Where the estate’s investments are less than $50,000, Managers are also required
to submit an investment proposal, however a financial plan from an accredited
financial adviser is not required.
Managers should note that the Trustee Regulation 2005, Regulation 4 (1) and (2)
provides guidance with respect to investment of trust funds where the value of the
estate does not exceed $50,000. Regulation 4 (2) provides The following investments are investments that a trustee might reasonably
consider appropriate for the investment of trust funds:
(a) any public funds or Government stock or Government securities of the
Commonwealth or any State,
(b) any debentures or securities guaranteed by the Government of New South
Wales,
(c) any debentures or securities:
(i)
(ii)
issued by a public or local authority, or a statutory body representing
the Crown, constituted by or under any law of the Commonwealth, or
of any State or Territory and
guaranteed by the Commonwealth, any State or the Northern
Territory,
(d) any debentures or securities issued by the Northern Territory and
guaranteed by the Commonwealth,
(e) interest-bearing deposits in a bank,
(f) any deposit with, withdrawable shares in, or loan of money to, an authorised
deposit-taking institution.
Other considerations for exceptions to requirement for a financial plan:
1. Whether the managed person is over 80 years of age, or has a short life
expectancy,
2. The past practices of the managed person,
3. The managed person’s intentions as evidenced by their Will, or any other
Trust instruments,
4. The managed person’s lifestyle, for example , the limited demands on
expenditure if in a care facility,
5. If the current investments of the managed person appear to be in their best
interests.
PLANNING AND INVESTING WITH THE NSW TRUSTEE AND GUARDIAN
NSW Trustee and Guardian’s financial planners can prepare a financial plan on
request for the managed person’s estate. They are salaried, not commissioned, and
experienced in the needs of managed persons. There is generally no charge for this
service.
Private Management Branch
MANAGER’S PROPOSAL FOR INVESTING
MANAGED PERSON’S FUNDS
Please refer to “Requirements for Managers Seeking to Invest Managed
Person’s Funds”
Managed person’s name: …………………………………………….Age: .....…….....
Managed person’s address: ...…………………………………………………………..
.……………………………………………………………
Type of Accommodation: ………………………………………………………………..
Manager/s name(s): ………..…………………………………………………….……….
…………….…………………………………..…………………….
Managed Persons Current Assets/Liabilities:
Asset Details
Bank Accounts, Cash Assets etc.
Total of all Bank Accounts, Cash assets etc.
Real Estate (including Furniture & Effects)
Investments, shares and similar
Total Investments, shares and similar
Amount
Amount
Accommodation Bond (paid to)
Other
Liabilities Details
Amount
PROPOSAL
Investments $50,000 or more
I/we request consideration to invest $……………………………………………………..
of……........................................................................(managed person’s name) funds.
Proposed Investments:
Please select the type of investment strategy described within the proposal.
Conservative

Balanced

Growth

Is this strategy appropriate for the particular needs (present and future) of the
managed person?
Yes 
No

If no, please attach details of why the proposal is recommending this strategy.
...................................………………………………………………..…………………….
...................................………………………………………………..…………………….
...................................………………………………………………..…………………….
...................................………………………………………………..…………………….
...................................………………………………………………..…………………….
...................................………………………………………………..…………………….
...................................………………………………………………..…………………….
...................................………………………………………………..…………………….
Managed Persons Proposed Investments:
Description of Proposed Investments
Cash
Fixed Interest
Australian Equities
International Equities
Property Trusts/Infrastructure
Total Proposed Investments
Value
Proposed Budget on Implementation of Investments
Please detail:
Sources of
Income
Aust Govt Pension
Other Pensions
Superannuation
Salary or Wages
Interest
Dividends
Rent
Other Income
Value
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Total Income
Regular Expenses
Amount per year
Nursing Home Fees
Rent Paid
Rates
Utilities
Insurances – specify
- House
- House and contents
- Motor Vehicle
- Life Insurance
- Other
Medical Expenses
Pharmaceuticals
Private Medical
Insurance
Other
Value
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Total Expenses
Surplus /Deficit
If there is not a surplus of income over expenses, please explain how you propose to
fund the deficit.
...................................………………………………………………..…………………….
...................................………………………………………………..…………………….
...................................………………………………………………..…………………….
...................................………………………………………………..…………………….
Please tick the boxes below to demonstrate:


Financial advice has been obtained and the Financial Plan is attached
If Financial Advice has not been obtained please detail reasons:
……………………………………………………………………………….
……………………………………………………………………………….
………………………………………………………………………………..
………………………………………………………………………………..

The Financial plan addresses the provisions of Section 14C of the NSW
Trustee Act 1925

Financial plan meets the current and future needs of the managed person and
is in his/her best interest.

Views of managed person or state managed person’s past investment
practices:
………………………………………………………………………………………..
………………………………………………………………………………………..

 Views of immediate family obtained and/or attached

Relationship
to Managed
Person
Signature
Consent
Y/N
………………….. ………………….……
……………..
……………….....
……….
………………….. …………………….…
……………..
………………….. ……….
………………….. ………………….……
……………..
………………….. ……….
………………….. ………………….……
……………..
………………….. ……….
Name
Contact Address or
Telephone No.
Manager’s Declaration and Recommendation
By signing this document I/we declare that:
1. I/we have read the NSW Trustee and Guardian’s “Requirements for Managers
Seeking to Invest Managed Persons’ Funds”
2. I/we are satisfied the investment proposal addresses the requirements of the
NSW Trustee and Guardian’s Guidelines and of Section 14C of the NSW
Trustee Act 1925
3. I/we recommend the investment proposal for implementation.
I/We recommend release of funds held on behalf of the managed person at
....................................................................... (name of institution, NSW Trustee and
Guardian, bank etc)
………………………………………………………
Signature of manager/s
……………………………..
Date
Investments under $50,000
I/we request to invest $………………………… of ….....................................................
(managed person’s name) funds as detailed:
Description of Proposed Investments
Value
Total Proposed Investments
1. I/we have read the NSW Trustee and Guardian’s “Requirements for
Managers Seeking to Invest Managed Persons’ Funds”
2. I/we are satisfied the investment proposal addresses the requirements of the
NSW Trustee and Guardian’s Guidelines and of Section 14C of the NSW
Trustee Act 1925
3. I/we recommend the investment proposal for implementation
I/We recommend release of funds held on behalf of the managed person at
……………..………………………………………………………….. (name of institution,
NSW Trustee and Guardian, bank etc).
………………………………………………………
Signature of manager/s
……………………………..
Date