 The Trustee Investments Act 1961 ( c 62 ) was an Act of the Parliament of the United Kingdom that covers where trustees can invest trust funds . Given the royal assent on 3 August 1961 , it removed the " Statutory Lists " system and replaced it with sets of specific investment areas . The Act was heavily criticised for the way it set these areas out , particularly the requirement that trusts trying to invest in multiple areas would need to be permanently divided . A 1997 Law Commission paper called its terms " overly cautious and restrictive " , suggesting that some trusts were underperforming as a result . The passing of the Trustee Act 2000 effectively nullified the 1961 Act 's terms in relation to trustee investment , and the 2000 Act is now the principal piece of legislation in this area . 
