13.Section 1 defines the new uniform statutory duty of care for trustees.  The circumstances where the duty will apply are defined in Schedule 1 to the Act, which is introduced by section 2.  The duty will not apply outside those circumstances.  To comply with the new duty a trustee must show such skill and care as is reasonable in the circumstances of the case making allowance for his or her special knowledge, experience or professional status (section 1(1)(a) and (b)).  Thus, in relation to the purchase of stocks and shares, a higher standard may be expected of a trustee who is an investment banker, specialising in equities, than of a trustee who is a beekeeper, particularly if the investment banker is acting as a trustee in the course of his or her investment banking business.  The new duty will therefore provide a standard against which the manner of the exercise of a power by trustees can be measured in the particular circumstances of the case.  In determining what constitutes reasonable care consideration would also be given to the nature, composition and purposes of the trust being administered.
Commentary on Sections Part 1: The duty of care Section 1: The duty of care