Statute Details
- Title: Trustees (Authorised Unit Trust Scheme) (No. 20) Order 2002
- Act Code: TA1967-S288-2002
- Legislation Type: Subsidiary legislation (SL)
- Authorising Act: Trustees Act (Cap. 337), section 83
- Enacting Formula: Made by the Minister for Law under powers conferred by section 83 of the Trustees Act
- Citation: Trustees (Authorised Unit Trust Scheme) (No. 20) Order 2002
- Key Provisions: Section 2 (declares specified funds as “authorised unit trust schemes” for purposes of the Trustees Act)
- Making Date: 19 June 2002
- Publication/SL Number: SL 288/2002
- Status (as provided): Current version as at 27 Mar 2026
What Is This Legislation About?
The Trustees (Authorised Unit Trust Scheme) (No. 20) Order 2002 is a short but legally significant instrument. Its primary function is to “authorise” specific unit trust funds for the purposes of the Trustees Act. In practical terms, the Order identifies two particular Schroder funds and declares them to be authorised unit trust schemes under the statutory framework governing what trustees may invest in.
In Singapore, trustees’ investment powers and duties are not purely discretionary. The law sets boundaries to protect beneficiaries by requiring trustees to invest in assets that meet defined criteria. One way the law does this is by allowing certain unit trust schemes to be recognised as “authorised” so that trustees can treat them as permissible investments under the Trustees Act regime.
This Order does not itself create a regulatory regime for the funds in the way that a full licensing or prospectus law might. Instead, it operates as a targeted authorisation: it designates named funds as authorised unit trust schemes, thereby enabling trustees to include those funds within their investment universe under the Trustees 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 who need to cite the correct instrument when advising trustees or preparing investment policies.
Section 2 (Authorised unit trust schemes) is the core operative provision. It declares that the following funds are authorised unit trust schemes for the purposes of the Trustees Act:
(a) Schroder US$ Annual Income Fund I; and
(b) Schroder US$ Annual Income Fund II.
From a practitioner’s perspective, the legal effect of this declaration is that trustees (and those advising trustees) can treat these named funds as falling within the category of “authorised unit trust schemes” referenced by the Trustees Act. This typically reduces uncertainty about whether a particular unit trust investment is permissible, and it supports compliance with statutory investment requirements.
It is important to note the precision of the authorisation. The Order does not authorise “Schroder unit trusts generally” or “Schroder income funds” broadly. It authorises specific funds by name: “Schroder US$ Annual Income Fund I” and “Schroder US$ Annual Income Fund II”. This means that trustees must ensure they invest in the exact authorised schemes, and that the fund identity is not altered in a way that would take it outside the described authorisation.
Making and commencement context. The Order was made on 19 June 2002 and published as SL 288/2002. The extract does not specify a separate commencement date. In many Singapore subsidiary instruments, unless otherwise stated, the instrument takes effect on the date of publication or on a default date determined by the relevant subsidiary legislation framework. Practitioners should confirm the commencement date in the official legislation record if advising on time-sensitive compliance (for example, whether a trustee’s investment decision occurred before the authorisation took effect).
How Is This Legislation Structured?
The Order is structured in a minimal, two-section format typical of authorisation orders. It contains:
(1) Section 1: the citation provision; and
(2) Section 2: the operative declaration listing the authorised unit trust schemes.
There are no additional parts, schedules, conditions, or procedural requirements in the text provided. The instrument is therefore best understood as a “designation” instrument: it identifies named funds and confirms their status for the Trustees Act purposes.
Who Does This Legislation Apply To?
This Order applies primarily to trustees and those who advise trustees in relation to trust investments. The authorisation is “for the purposes of the Act”, meaning it is relevant to how trustees exercise investment powers and comply with statutory constraints under the Trustees Act.
While the Order is directed at the trustees’ investment framework, it indirectly affects other stakeholders. For example, trustees’ investment managers, custodians, and financial advisers who structure portfolios for trusts will need to know which unit trust schemes are authorised. Similarly, beneficiaries and trustees’ auditors may rely on the authorised status to assess whether the trustee’s investment choices were within permissible bounds.
Because the Order authorises only two named funds, trustees should treat it as a specific compliance reference. If a trustee is considering a different Schroder fund, or a different share class or series that is not expressly named, the trustee should not assume authorisation without checking the relevant authorisation orders (including any later or earlier “No. X” orders that may cover other funds).
Why Is This Legislation Important?
Although the Order is brief, it can be highly consequential in trust administration. Trustees are expected to act prudently and within the scope of their legal powers. Authorised unit trust schemes provide a clear statutory pathway for trustees to invest in collective investment vehicles while meeting the requirements embedded in the Trustees Act.
From a risk management perspective, the authorisation reduces legal uncertainty. If a trustee invests in a unit trust scheme that is not authorised (or otherwise not permissible under the Trustees Act framework), the trustee may face challenges relating to breach of trust, improper exercise of investment powers, or the need to unwind investments. Conversely, investing in an authorised scheme supports a defensible position that the trustee acted within the statutory investment permissions.
Practically, this Order also assists in portfolio documentation. Trustees typically maintain investment policies, minutes, and compliance checklists. When these documents reference the Trustees Act authorised list, the Order provides the legal basis to include “Schroder US$ Annual Income Fund I” and “Schroder US$ Annual Income Fund II” as permissible investments.
Finally, the Order illustrates how Singapore’s trust investment framework works in practice: rather than embedding a long list of authorised funds directly in the Trustees Act itself, the law uses subsidiary instruments made under section 83 to add or update authorised schemes over time. This approach allows the authorised universe to evolve as new funds are launched or as authorisations are granted.
Related Legislation
- Trustees Act (Cap. 337) — in particular section 83 (power to make orders declaring authorised unit trust schemes)
Source Documents
This article provides an overview of the Trustees (Authorised Unit Trust Scheme) (No. 20) Order 2002 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.