Statute Details
- Title: Trustees (Authorised Unit Trust Scheme) (No. 2) Order 2003
- Act Code: TA1967-S73-2003
- Type: Subsidiary legislation (SL)
- 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
- Legislative Citation: SL 73/2003
- Date Made: 11 February 2003
- Commencement Date: Not specified in the extract (practitioners should confirm in the official publication)
- Status: Current version as at 27 March 2026
- Primary Operative Provision: Declaration of an authorised unit trust scheme
What Is This Legislation About?
The Trustees (Authorised Unit Trust Scheme) (No. 2) Order 2003 is a short piece of subsidiary legislation made under the Trustees Act. Its practical function is to “declare” a specific collective investment product—namely, the SGAM Guaranteed Alternative Diversified Fund—as an authorised unit trust scheme for the purposes of the Trustees Act.
In plain terms, the Order provides legal recognition for a particular unit trust scheme so that it can be used in contexts governed by the Trustees Act. The Trustees Act regulates, among other things, how trustees may invest trust assets and what kinds of investments are permitted or treated as suitable under the statutory framework. By designating certain schemes as “authorised,” the law creates a pathway for trustees to invest in those schemes without having to independently justify their eligibility under the Act’s investment regime.
Although the Order itself is brief, it sits within a broader regulatory architecture. The designation of an authorised unit trust scheme is not a general approval of all unit trusts; it is a targeted legal act that applies to the named scheme. For practitioners, this means the Order should be read as a specific legal instrument with specific scope—its effect is tied to the scheme named in the text and to the purposes for which the Trustees Act recognises authorised unit trust schemes.
What Are the Key Provisions?
Section 1 (Citation) provides the formal name by which the instrument may be cited: the Trustees (Authorised Unit Trust Scheme) (No. 2) Order 2003. While this is not substantive, citation provisions are important for legal referencing, especially when multiple “authorised unit trust scheme” orders exist.
Section 2 (Authorised unit trust scheme) is the core operative provision. It states that the SGAM Guaranteed Alternative Diversified Fund is “hereby declared as an authorised unit trust scheme for the purposes of the Act.” This declaration is the legal mechanism that brings the named fund within the statutory category of authorised schemes.
From a practitioner’s perspective, the key interpretive point is that the declaration is made “for the purposes of the Act.” That phrase matters because the Trustees Act may use the concept of “authorised unit trust scheme” in particular provisions—such as those governing trustee investments, permitted investments, or compliance with statutory investment requirements. The Order does not itself set out investment rules; instead, it supplies the qualifying status that triggers the relevant effects under the Trustees Act.
Enacting formula and statutory authority are also significant. The Order is made “in exercise of the powers conferred by section 83 of the Trustees Act.” This indicates that the Minister for Law has a delegated power to designate authorised unit trust schemes. In legal practice, this matters for validity and administrative law considerations: the designation must fall within the scope of the enabling provision, and the Minister’s action is anchored to the statutory authority.
Making date and formalities are included: the Order was made on 11 February 2003 by Liew Heng San, Permanent Secretary, Ministry of Law. The inclusion of the making date and signatory supports the instrument’s authenticity and assists practitioners when determining whether the designation was in force at particular times (for example, when assessing historical trustee conduct or compliance).
How Is This Legislation Structured?
The Order is structured in a very simple format, consisting of:
(1) A citation provision (Section 1), and (2) a single substantive declaration (Section 2) identifying the authorised unit trust scheme.
There are no schedules, no detailed conditions, and no procedural requirements stated in the extract. This is consistent with many “authorisation orders,” which typically operate as legal “labels” or “designations” rather than as comprehensive regulatory instruments. The substantive investment consequences are expected to be found in the Trustees Act itself, not in the Order.
Who Does This Legislation Apply To?
The Order applies to the extent that the Trustees Act uses the concept of an “authorised unit trust scheme.” In practice, this primarily affects trustees (including professional trustees and other persons acting in a trustee capacity) who must comply with statutory investment rules when managing trust assets.
It also indirectly affects other parties involved in trust administration and investment implementation—such as trustees’ investment managers, custodians, and advisers—because they need to know which investment vehicles are recognised under the statutory framework. However, the Order itself does not impose obligations on investors generally; rather, it supplies a designation that trustees may rely on when meeting their statutory duties under the Trustees Act.
Importantly, the Order is scheme-specific. Only the SGAM Guaranteed Alternative Diversified Fund is declared authorised under this instrument. If a trustee invests in a different unit trust scheme, the trustee cannot assume authorisation based solely on the existence of this Order; the relevant scheme must be separately designated (or otherwise qualify) under the Trustees Act framework.
Why Is This Legislation Important?
Even though the Order is short, it can be highly consequential for trust governance and compliance. Trustees often operate under statutory constraints that require careful selection of investments. A designation as an authorised unit trust scheme can reduce compliance uncertainty and provide a clearer basis for trustees to justify that a particular investment is permitted under the Trustees Act.
From a risk management standpoint, the Order helps trustees avoid potential breaches that could arise if trust assets are invested in vehicles that are not recognised under the statutory investment regime. In disputes—such as claims of mismanagement, allegations of unauthorised investments, or challenges to trustee decisions—whether an investment was “authorised” can become a central factual and legal issue. The existence of a specific authorisation order supports the trustee’s position that the investment fell within the statutory category at the relevant time.
For practitioners advising trustees, the Order also has practical drafting and documentation implications. When preparing investment policies, trustee resolutions, or compliance checklists, advisers should identify the relevant authorised schemes by reference to the applicable orders. Because this Order is “(No. 2),” it suggests there are multiple authorisation instruments; therefore, counsel should ensure that the trustee’s chosen fund corresponds to the correct designation and that the designation was current when the investment was made.
Finally, the Order illustrates how Singapore’s legal framework uses subsidiary legislation to update and manage investment eligibility. Rather than amending the Trustees Act each time a new fund is approved, the Minister can designate specific schemes through orders. This approach supports administrative flexibility while maintaining legal certainty through published instruments.
Related Legislation
- Trustees Act (Chapter 337) — in particular, section 83 (the enabling provision for making authorisation orders)
Source Documents
This article provides an overview of the Trustees (Authorised Unit Trust Scheme) (No. 2) Order 2003 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.