Asset manager appointed by linked trust corporation held to be conflict of interest – Pensions Barrister

Posted March 22nd, 2024 in conflict of interest, Court of Protection, news, pensions by sally

‘In Irwin Mitchell Trust Corpn v PW [2024] EWCOP 16, a trust corporation, appointed as property and affairs deputy for a protected person under the Mental Capacity Act 2005, appointed an asset management company that was part of same corporate group as the trust corporation to manage the investment of the protected person’s funds. The Court of Protection held that that appointment operated to the financial advantage of the trust corporation, clearly breaching the rules against conflict of interest, and as such required ratification by the court. The court rejected the trust corporation’s arguments that the potential for conflict had been extinguished by the appointment process and that the appointment had already been authorised by an earlier court decision. The court adjourned the issue of ratification pending further evidence as to whether the appointment would be in the best interests of the protected person.’

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Pensions Barrister, 21st March 2024