Authorized Investment


Authorized Investment
Dictated by state laws or by trust instruments designed to restrict the kinds and amounts of investments allowed within a trust. In most cases, an authorized investment list prevents aggressive or speculative investments and insures that the trust is conservatively managed. It is the responsibility of the trustee, or fiduciary, to comply with the list of authorized investments for the trust account involved.

While many states have abolished what was known as the "legal list" of investments permitted in trusts, there are still general rules that govern a fiduciary's investment choices and the management of trust assets. These rules are governed both by states and by the Financial Industry Regulatory Authority (FINRA) and the U.S. Securities and Exchange Commission (SEC), and are usually arbitrated in the surrogate or probate courts.


Investment dictionary. . 2012.

Look at other dictionaries:

  • authorized investment fund — UK US (UK also authorised investment fund) noun [C] (also authorized fund) ► FINANCE an amount of money invested in a range of shares, bonds, etc. for a group of small investors: »The investment rules for ISAs and Authorised Investment Funds are… …   Financial and business terms

  • authorized fund — ➔ fund1 * * * authorized fund UK US (UK also authorised fund) noun [C] ► FINANCE AUTHORIZED INVESTMENT FUND(Cf. ↑authorized investment fund) …   Financial and business terms

  • investment — money used to purchase any capital items for the business and expected to yield an income. Glossary of Business Terms The creation of more money through the use of capital. Bloomberg Financial Dictionary This has a special regulatory meaning… …   Financial and business terms

  • Investment advisor — An investment advisor (or investment adviser) is an individual or firm that advises clients on investment matters on a professional basis. They tend to fall into two distinct categories: * investment advisors offering direct financial advice to… …   Wikipedia

  • investment trust — or closed end trust Financial organization that pools the funds of its shareholders and invests them in a diversified portfolio of securities. It differs from a mutual fund, which issues units representing diversified holdings rather than shares… …   Universalium

  • authorized investments — Formerly, certain legally authorized investments considered suitable for trust funds, as set out in the Trustees Investment Act (1961). A much wider general power of investment for trustees was introduced in 2000 …   Accounting dictionary

  • authorized investments — Formerly, certain legally authorized investments considered suitable for trust funds, as set out in the Trustees Investment Act (1961). A much wider general power of investment for trustees was introduced in 2000 …   Big dictionary of business and management

  • Investment Trusts —    Companies which issue shares and then use those funds to invest in other companies. There is a fixed amount of authorized share capital and new shares may not be created on demand. They are known as closed end publicly quoted funds in the US… …   Financial and business terms

  • Investment Securities Directive —   Introduced in 1993, and permitting a company authorized in one Member States to offer its services throughout the EC without requiring further authorization, as well as providing standards for solvency and the protection of investors …   Glossary of the European Union and European Communities

  • African Investment Bank — The African Investment Bank (AIB) is one of three financial institutions of the African Union (AU) along with the African Monetary Fund and the African Central Bank. It will be headquartered in Tripoli, Libya and is scheduled to begin operations… …   Wikipedia