Advisors need to update their investment management contracts, including policy statements, to reflect the new rules that enable delegation, says Terry Carter, an Orangeville, Ont., lawyer who advises charities. These advisors "are quick to look for charity business, but not as quick to provide the appropriate documentation. They need to do an adequate job to make sure the charities are protected for delegating their financial decisions." This is particularly an issue if an advisor advocates that a charity invest in mutual funds. Due to the prohibition against subdelegation, advisors are exposing the charities to potential liability. "This has not been tested in the courts," says Carter." My advice to charities is to be careful." Large, national charities face a unique problem regarding investing standards, says Carter. For example, if a charity's head office is in Ontario and it conducts a fundraising campaign in Saskatchewan and the funds are invested in New Brunswick, which province's laws apply? Because not all provinces are currently on board with the prudent investor rule, he says, advisors should become aware of a charity's operations before diving in with financial advice.