Statute Details
- Title: Trustees (Authorised Unit Trust Scheme) (No. 16) Order 2002
- Act Code: TA1967-S232-2002
- Legislation Type: Subsidiary legislation (Order)
- Authorising Act: Trustees Act (Cap. 337)
- Key Enabling Provision: Section 83 of the Trustees Act
- Enacting Formula: Minister for Law makes the Order in exercise of powers under section 83
- Commencement / Date Made: Made 17 May 2002; published as SL 232/2002 (20 May 2002)
- Status: Current version as at 27 Mar 2026
- Primary Operative Provisions: Section 1 (Citation); Section 2 (Authorised unit trust scheme)
- Designated Scheme: Schroder Asian Balanced Fund
What Is This Legislation About?
The Trustees (Authorised Unit Trust Scheme) (No. 16) Order 2002 is a short piece of Singapore subsidiary legislation that performs a single, targeted legal function: it designates a specific collective investment product—the Schroder Asian Balanced Fund—as an “authorised unit trust scheme” for the purposes of the Trustees Act (Cap. 337).
In plain terms, the Order answers a practical question that trustees, trust administrators, and their advisers often face: Can a trustee invest trust assets in a particular unit trust scheme? Under the Trustees Act framework, certain unit trust schemes may be treated as suitable for trustees to hold or invest in, but only if they are formally authorised. This Order is one of the instruments used by the Ministry of Law to grant that authorisation for a named scheme.
Because the Order is made under section 83 of the Trustees Act, it does not create a general regulatory regime for unit trusts (such as licensing or conduct rules). Instead, it operates as an authorisation designation—a legal “gatekeeping” step that links a particular scheme to the trustee investment rules in the 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 ensuring that the correct instrument is relied upon in trustee resolutions, investment policies, and correspondence with beneficiaries or auditors.
Section 2 (Authorised unit trust scheme) is the operative provision. It states that “The Schroder Asian Balanced Fund is hereby declared as an authorised unit trust scheme for the purposes of the Act.” This single sentence has significant legal consequences for trustees.
Once a scheme is declared “authorised” under the Trustees Act, trustees can generally treat it as falling within the category of investments permitted or recognised under the Act’s trustee investment framework (subject to the Act’s other requirements and any conditions that may apply in the broader statutory context). In practice, this reduces uncertainty: trustees do not need to independently justify why the scheme should be treated as suitable under the Act’s investment rules; the authorisation declaration is the statutory basis.
Enacting formula and ministerial power are also important for practitioners. The Order is made “in exercise of the powers conferred by section 83 of the Trustees Act” by the Minister for Law. This indicates that the authorisation is not automatic; it is an administrative act grounded in statutory authority. For legal analysis, this matters when assessing validity, scope, and whether the authorisation can be challenged (for example, on procedural or jurisdictional grounds). However, the extract provided shows no additional conditions, schedules, or procedural steps within the Order itself.
Made date and legislative identification (SL 232/2002) also matter. The Order was made on 17 May 2002 and is identified as SL 232/2002 with the timeline showing 20 May 2002. For trustees managing long-running trusts, the timing can be relevant to whether investments were made before or after the scheme became authorised. This can affect compliance assessments, audit findings, and potential liability analysis for historical investment decisions.
How Is This Legislation Structured?
The Order is extremely concise and consists of a short structure typical of authorisation orders under the Trustees Act:
(1) Citation provision: Section 1 sets out the short title.
(2) Authorisation provision: Section 2 declares the named unit trust scheme as authorised for the purposes of the Trustees Act.
There are no additional Parts, schedules, definitions, or conditions in the extract. The legal effect is therefore concentrated entirely in the declaration in section 2.
Who Does This Legislation Apply To?
This Order applies primarily to trustees and those who advise or administer trusts in Singapore. The authorisation is “for the purposes of the Act,” meaning it is relevant to how trustees comply with the investment and holding rules under the Trustees Act (Cap. 337). While the Order itself is directed at the scheme being authorised, the practical beneficiaries of the authorisation are trustees who want to invest trust assets in that scheme.
In addition, lawyers, trust administrators, compliance officers, and auditors may rely on the Order when preparing investment policy statements, reviewing trust portfolios, or documenting compliance. The authorisation status can also be relevant to how trustees communicate with beneficiaries about investment choices, particularly where beneficiaries ask why a particular fund is held.
Why Is This Legislation Important?
Although the Order is brief, it can be highly consequential in trustee practice. Trustees operate under fiduciary duties and statutory constraints. The Trustees Act provides a structured approach to trustee investments, and authorisation orders like this one help trustees meet those statutory requirements. In other words, the Order is a compliance enabler: it provides a clear statutory basis for treating the Schroder Asian Balanced Fund as an authorised unit trust scheme.
From a risk management perspective, the authorisation reduces uncertainty. Without a formal authorisation, trustees may face greater difficulty in demonstrating that an investment is permitted under the Trustees Act framework. That can lead to disputes, audit adjustments, or—depending on the facts—exposure to claims that a trustee acted outside permitted investment powers. By contrast, where an authorisation exists, trustees can point to the statutory designation as part of their rationale.
Practitioners should also note that the Order’s “current version as at 27 Mar 2026” status indicates that the instrument remains in force in the legal database. For ongoing trusts, this means that the authorisation is not merely historical; it remains relevant for current compliance checks unless superseded by later amendments or new authorisation instruments. Lawyers should, however, always verify whether the scheme’s name, structure, or fund details have changed over time, and whether any later legislation or administrative updates affect how the scheme is treated for trustee investment purposes.
Related Legislation
- Trustees Act (Cap. 337) — in particular, section 83 (the enabling provision for authorisation orders)
Source Documents
This article provides an overview of the Trustees (Authorised Unit Trust Scheme) (No. 16) Order 2002 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.