Total return investment: consultation on draft regulations

The Charity Commission has produced draft regulations on how permanently endowed charitable trusts can exercise the power to adopt and operate a total return approach to investment, under section 4 of the Trusts (Capital and Income) Act 2013. The draft regulations propose to allow trustees of endowed charities to adopt the power to use a total return approach without asking the Commission – as long as they comply with the safeguards in the Regulations. The draft Regulations also seek to give trustees more flexibility in terms of allocating their investment returns. The Charity Commission’s consultation on the draft Regulations closed on 20 June and the Charity Commission has indicated that the final regulations will be in place and ready to use by October 2013.

IBB’s specialist charity lawyers have a wealth of experience in delivering practical commercial advice to charities and not for profit organisations and those who work with them. Contact our charity law team here, call 01895 207809 or email charities@ibblaw.co.uk.