Statute Details
- Title: Trustees (Authorised Unit Trust Scheme) (No. 12) Order 2004
- Act Code: TA1967-S354-2004
- Legislation Type: Subsidiary Legislation (SL)
- Authorising Act: Trustees Act (Cap. 337)
- Key Enabling Power: Section 83 of the Trustees Act
- Enacting Minister: Minister for Law (made by the Permanent Secretary, Ministry of Law)
- Date Made: 22 June 2004
- Commencement: Not stated in the extract (practitioners should confirm via the legislation timeline/official publication)
- Current Status: Current version as at 27 Mar 2026
- Legislative Citation: SL 354/2004
- Primary Operative Provision: Declaration of an authorised unit trust scheme (DBS Malaysia Equity Fund)
What Is This Legislation About?
The Trustees (Authorised Unit Trust Scheme) (No. 12) Order 2004 is a short but legally significant instrument. Its core function is to declare a specific investment product—the DBS Malaysia Equity Fund—to be an “authorised unit trust scheme” for the purposes of the Trustees Act (Cap. 337).
In practical terms, this kind of order matters because trustees (including professional trustees and trust companies) often have statutory or trust-law constraints on what investments they may hold. The Trustees Act framework generally aims to ensure that trustees invest trust assets in ways that are prudent, regulated, and suitable. By authorising particular unit trust schemes, the law provides trustees with a clear legal basis to hold those schemes without having to rely solely on general investment discretion.
This Order is made under a specific ministerial power in the Trustees Act—section 83. That enabling provision allows the Minister to designate particular unit trust schemes as authorised. Once designated, the scheme falls within the statutory category that trustees can treat as eligible investments under the Act.
What Are the Key Provisions?
Section 1 (Citation) provides the formal name by which the instrument may be cited: “Trustees (Authorised Unit Trust Scheme) (No. 12) Order 2004.” While this is standard drafting, it is important for legal referencing, compliance documentation, and audit trails.
Section 2 (Authorised unit trust scheme) is the operative provision. It states that the DBS Malaysia Equity Fund is hereby declared as an authorised unit trust scheme for the purposes of the Trustees Act. This declaration is the legal mechanism that brings the fund within the statutory regime.
Although the extract contains only two provisions, the legal effect is substantial. The Order does not itself describe investment limits, trustee duties, or procedural requirements. Instead, it performs a designation function: it identifies the particular unit trust scheme that qualifies under the Trustees Act. The consequences of that qualification flow from the Trustees Act’s broader provisions governing trustees’ investments and eligibility criteria.
Enacting formula and making clause confirm that the Minister for Law acts “in exercise of the powers conferred by section 83 of the Trustees Act.” This matters for practitioners because it anchors the validity of the designation in the statutory authority. The making clause also records the date the Order was made (22 June 2004) and the official responsible (Liew Heng San, Permanent Secretary, Ministry of Law). For governance and regulatory compliance, such details are often relevant when assessing whether a designation was properly authorised.
How Is This Legislation Structured?
This instrument is structured as a very compact subsidiary legislation order with:
(1) A citation provision (Section 1), and (2) a single operative designation provision (Section 2). There are no parts, schedules, or detailed definitions in the extract. The legal “work” is done by the declaration in Section 2.
From a practitioner’s perspective, the structure means that the Order should not be read in isolation. Instead, it should be read together with the Trustees Act (Cap. 337), particularly the provisions that explain what it means for a unit trust scheme to be “authorised” and how trustees may rely on that status.
Who Does This Legislation Apply To?
The Order applies to trustees and trust-related actors who are subject to the Trustees Act and who consider whether a unit trust scheme is eligible for holding as part of trust property. While the Order itself is directed at the designation of a scheme (not at conduct), its practical effect is felt by trustees who must comply with statutory investment rules.
In addition, the designation is relevant to parties involved in the administration of trusts—such as trustees, trustee companies, investment managers acting for trustees, and compliance officers—because they need to determine whether a particular fund is within the statutory category of authorised schemes. For investment documentation, suitability checks, and internal investment policies, the authorised status can be a key compliance point.
Why Is This Legislation Important?
Even though the Order is brief, it plays an important role in the legal infrastructure for trust investments. Trustees often face a dual compliance challenge: (i) they must act in the best interests of beneficiaries and (ii) they must comply with statutory restrictions on investments. By designating the DBS Malaysia Equity Fund as an authorised unit trust scheme, the law provides a clear and legally recognised pathway for trustees to hold that fund.
From an enforcement and risk-management standpoint, authorised status can reduce uncertainty. Without such a designation, trustees might need to rely on general investment powers or argue that a particular investment is permissible under the trust instrument and applicable law. That can increase legal risk, especially in disputes or regulatory reviews. Authorisation helps create a defensible compliance position.
Practically, the Order also supports operational efficiency. Investment committees and compliance teams can maintain a list of authorised schemes and use it to streamline approvals. For beneficiaries and auditors, it provides transparency that the trustee’s investment choices align with the statutory framework.
Related Legislation
- Trustees Act (Cap. 337) — in particular, section 83 (the enabling provision for making orders declaring authorised unit trust schemes)
Source Documents
This article provides an overview of the Trustees (Authorised Unit Trust Scheme) (No. 12) Order 2004 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.