Statute Details
- Title: Trustees (Authorised Unit Trust Scheme) (No. 11) Order 2004
- Act Code: TA1967-S287-2004
- Type: Subsidiary Legislation (SL)
- Authorising Act: Trustees Act (Cap. 337)
- Legal Power Used: Section 83 of the Trustees Act
- Enacting Formula: Minister for Law makes the Order in exercise of powers under section 83
- Citation: Trustees (Authorised Unit Trust Scheme) (No. 11) Order 2004
- Order Date / Made: 12 May 2004
- Commencement Date: Not stated in the extract (typically the date of making/notification applies unless otherwise provided)
- Legislative Instrument Number: SL 287/2004
- Current Version Status: Current version as at 27 Mar 2026 (per the legislation portal)
- Key Provision: Section 2 declares specified funds as “authorised unit trust schemes” for purposes of the Trustees Act
What Is This Legislation About?
The Trustees (Authorised Unit Trust Scheme) (No. 11) Order 2004 is a short but legally significant instrument. In substance, it designates particular investment funds—specifically two currency-denominated share classes/variants of the same product—as “authorised unit trust schemes” for the purposes of the Trustees Act.
In Singapore, the Trustees Act regulates how trustees may invest trust assets. A recurring legal issue for trustees is whether a particular investment is permitted under the statutory investment framework. The concept of an “authorised unit trust scheme” is therefore central: it signals that the scheme has been approved for the relevant statutory purpose, allowing trustees to consider it as an eligible investment without needing to rely solely on discretionary or case-by-case approvals.
This Order does not itself create a new regulatory regime for unit trust management. Instead, it operates as a designation mechanism: once a fund is declared “authorised” under the Trustees Act, trustees can treat it as meeting the statutory investment criteria tied to that Act.
What Are the Key Provisions?
Section 1 (Citation) provides the formal name by which the Order may be cited. While this is standard drafting, it matters for legal referencing, compliance documentation, and for practitioners verifying the correct instrument when advising trustees or preparing investment policies.
Section 2 (Authorised unit trust schemes) is the operative provision. It declares the following funds as authorised unit trust schemes for the purposes of the Trustees Act:
- DBS Momentum Capital Protected Fund (S$)
- DBS Momentum Capital Protected Fund (US$)
The legal effect of this declaration is that these funds are brought within the statutory category of “authorised unit trust schemes.” For trustees, this typically translates into greater certainty that investing in these funds aligns with the Trustees Act’s investment framework.
Scope of the designation is important. The Order is not a blanket authorisation of all DBS funds, nor does it authorise all currency versions of the “Momentum Capital Protected” brand unless expressly named. Here, the Order specifically lists the Singapore dollar and United States dollar versions. A practitioner should therefore treat the authorisation as fund-specific and currency-specific, consistent with the wording of section 2.
Procedural and legal basis is also relevant for practitioners. The Order is made “in exercise of the powers conferred by section 83 of the Trustees Act.” That means the Minister’s designation authority is anchored in the Trustees Act itself. When advising on validity, challenges, or compliance, counsel would look to section 83 as the enabling provision and to the specific listing in section 2 as the scope of authorisation.
How Is This Legislation Structured?
This Order is extremely concise and is structured around a simple two-section format:
- Section 1: Citation (how the Order is referred to).
- Section 2: The substantive designation of authorised unit trust schemes, listing the specific funds.
There are no schedules in the extract and no additional conditions, reporting requirements, or ongoing compliance obligations stated within the Order itself. The instrument functions as a “declaration” instrument: it identifies the authorised funds and thereby triggers the legal consequences under the Trustees Act for trustees’ investment decisions.
Who Does This Legislation Apply To?
The primary persons affected are trustees who must comply with the investment rules under the Trustees Act. The Order’s designation is relevant when trustees consider where to place trust assets, particularly where the Trustees Act’s investment framework distinguishes between authorised and unauthorised investments.
Although the Order is directed at the trustees’ investment universe, it indirectly affects other stakeholders as well. For example, trustees’ investment committees, professional trustees, custodians, and law firms advising on trust administration will rely on such designations when drafting investment mandates, reviewing trust accounts, and ensuring that trust investments remain within statutory bounds. The unit trust manager and distributors of the named funds may also benefit commercially because authorised status can make the funds more attractive to trustees seeking compliant investments.
Why Is This Legislation Important?
Even though the Order is short, it can have a meaningful practical impact. Trustees often face compliance risk when investing in financial products. If a fund is not authorised under the relevant statutory framework, trustees may need to seek alternative authority, rely on discretionary powers, or face potential questions about whether the investment was permitted. By declaring the DBS Momentum Capital Protected Fund (S$) and (US$) as authorised unit trust schemes, the Order reduces uncertainty and supports compliance.
From a legal risk perspective, authorised status can be critical in disputes or audits. If a trustee’s investment decisions are later scrutinised—whether by beneficiaries, auditors, or in the context of professional negligence claims—documenting that the trustee invested in a fund expressly declared authorised under the Trustees Act can be a strong compliance indicator.
For practitioners, the key is to treat the authorisation as a specific legal designation rather than a general endorsement. The Order lists two funds by name and currency. Counsel advising trustees should confirm that the intended investment matches the authorised designation exactly (including currency and fund identity) and should also consider whether any other statutory or regulatory requirements apply to the trustee’s particular trust (for example, any internal investment policy constraints or additional statutory duties).
Related Legislation
- Trustees Act (Chapter 337) — in particular, section 83 (the enabling provision for designating authorised unit trust schemes)
Source Documents
This article provides an overview of the Trustees (Authorised Unit Trust Scheme) (No. 11) Order 2004 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.