Statute Details
- Title: Trustees (Authorised Unit Trust Scheme) (No. 2) Order 1998
- Act Code: TA1967-S233-1998
- Legislation Type: Subsidiary Legislation (SL)
- Authorising Act: Trustees Act (Cap. 337)
- Key Enabling Provision: Section 86 of the Trustees Act
- Enacting Formula: Made by the Minister for Law in exercise of powers under section 86
- Primary Operative Provision: Declaration of an “authorised unit trust scheme”
- Regulated Scheme (named): Schroder International Balanced Growth Fund
- Citation: “This Order may be cited as the Trustees (Authorised Unit Trust Scheme) (No.2) Order 1998.” (s. 1)
- Making Date: 3 April 1998
- SL Number: SL 233/1998
- Status: Current version as at 27 Mar 2026
What Is This Legislation About?
The Trustees (Authorised Unit Trust Scheme) (No. 2) Order 1998 is a short piece of Singapore subsidiary legislation that performs a single, targeted legal function: it formally declares a specific collective investment vehicle—Schroder International Balanced Growth Fund—to be an “authorised unit trust scheme” for the purposes of the Trustees Act (Cap. 337).
In plain terms, the Order is part of a regulatory mechanism that allows certain unit trust schemes to be recognised for trust-related purposes under the Trustees Act. The practical effect is that trustees (and other persons acting in trust contexts) may rely on the scheme’s authorised status when considering whether investments fall within categories permitted or recognised under the Act.
Because the Order is made under section 86 of the Trustees Act, it sits within a broader statutory framework. The Trustees Act governs, among other things, the duties and powers of trustees, including how trust funds may be invested. The “authorised unit trust scheme” concept is therefore not merely descriptive; it is a legal status that can affect investment eligibility and compliance.
What Are the Key Provisions?
Section 1 (Citation) provides the formal short title of the instrument. While this is standard drafting, it matters for legal referencing, reporting, and compliance documentation. Practitioners often need to cite the correct subsidiary legislation when advising on the legal basis for an investment’s authorised status.
Section 2 (Authorised unit trust scheme) is the operative provision. It states that Schroder International Balanced Growth Fund is “hereby declared an authorised unit trust scheme for the purposes of the Act.” This declaration is the legal trigger that confers the authorised status under the Trustees Act framework.
Notably, the Order does not set out detailed regulatory conditions, ongoing reporting obligations, or investor protections within its text. Instead, it functions as an authorisation/recognition instrument—a formal designation that the scheme qualifies for the relevant statutory purposes. The substantive regulatory requirements (for example, those relating to the scheme’s establishment, management, or compliance with broader financial regulation) are typically found in the primary legislation and other regulatory instruments governing unit trusts and collective investment schemes.
From a practitioner’s perspective, the key legal question is usually not “what does the Order require?” but rather what legal consequences flow from the scheme being declared authorised under the Trustees Act. The Order itself is concise, but its effect can be significant in trust administration, investment policy statements, and advice to trustees on permitted investments.
How Is This Legislation Structured?
This Order is structured in a very simple manner, reflecting its narrow purpose. It contains:
(1) An enacting formula that identifies the legal basis for the Minister’s power—section 86 of the Trustees Act—and confirms that the Minister for Law makes the Order.
(2) Section 1 setting out the citation.
(3) Section 2 making the declaration that Schroder International Balanced Growth Fund is an authorised unit trust scheme for the purposes of the Trustees Act.
There are no additional parts, schedules, definitions, or procedural provisions in the extract provided. The instrument is therefore best understood as a designation order rather than a comprehensive regulatory code.
Who Does This Legislation Apply To?
The Order applies to the extent that the authorised unit trust scheme status matters under the Trustees Act. While the Order names a particular scheme, the practical beneficiaries of the designation are typically trustees and those advising them—because trustees must ensure that their investment choices comply with statutory requirements and permitted categories.
Accordingly, the Order is relevant to:
- Trustees administering trust funds who need to determine whether a unit trust scheme is eligible for investment under the Trustees Act regime;
- Professional advisers (lawyers, investment consultants, compliance officers) preparing investment policies, trust investment memos, or advice on statutory compliance;
- Fund administrators and managers insofar as authorised status may affect how the scheme is marketed or used in trust contexts (though the Order itself does not impose operational obligations).
Importantly, the Order does not directly regulate retail investors’ rights or impose conduct requirements on the fund manager within the text shown. Instead, it operates as a legal recognition that can be relied upon in trust law contexts.
Why Is This Legislation Important?
Even though the Trustees (Authorised Unit Trust Scheme) (No. 2) Order 1998 is brief, it can be highly consequential in practice. In trust administration, investment decisions must often be justified against statutory criteria. An “authorised unit trust scheme” designation can provide trustees with a clearer compliance pathway when selecting investments, reducing uncertainty about whether a particular scheme falls within the categories contemplated by the Trustees Act.
For legal practitioners, the Order is a useful reference point when drafting or reviewing:
- Trust investment policies and mandates;
- Trustee resolutions approving investments;
- Compliance checklists for permitted investments;
- Advice memos on whether a proposed investment is statutorily recognised.
Additionally, the Order’s status as “current version as at 27 Mar 2026” indicates that the designation remains in force (at least as reflected in the consolidated legislative database). Practitioners should still verify whether there have been amendments, revocations, or superseding authorisation orders affecting the scheme’s status, but the presence of a “current version” label is generally reassuring for reliance purposes.
Finally, the Order illustrates how Singapore’s legislative approach can use targeted subsidiary instruments to implement authorisations under a broader statutory framework. Rather than embedding complex authorisation criteria in each order, the system relies on the enabling provision (here, section 86 of the Trustees Act) and then issues specific declarations for particular schemes. This approach supports administrative efficiency and legal clarity for trustees and advisers.
Related Legislation
- Trustees Act (Cap. 337) — in particular, section 86 (the enabling provision for making authorisation orders)
Source Documents
This article provides an overview of the Trustees (Authorised Unit Trust Scheme) (No. 2) Order 1998 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.