The Charity Commission has published an update on investment guidance, following the Butler-Sloss legal case.
The judgment in the above case was that charity trustees have discretion to exclude certain investments which would offer a higher return if the trustees reasonably believe that such investments would conflict with their charity’s objects.
The Commission states that this judgement clarifies, but does not fundamentally alter, the legal principles which apply when trustees make investment decisions. Trustees can therefore still rely on the Commission’s investment guidance, though the Commission will undertake a general review of this guidance in order to make it simpler and easier to understand.
(Note that the social investment powers mentioned in the update and in the Commission’s guidance, introduced by the Charities (Protection & Social Investment) Act 2016, do not apply to charities established by, or whose purposes and functions are set out in legislation, and so do not apply to college corporations.)