Statute Details
- Title: Trustees (Authorised Unit Trust Scheme) (No. 21) Order 2002
- Act Code: TA1967-S303-2002
- Legislation Type: Subsidiary Legislation (SL)
- Authorising Act: Trustees Act (Cap. 337)
- Key Enabling Provision: Section 83 of the Trustees Act
- Enacting Formula: Made by the Minister for Law in exercise of powers under section 83
- Commencement: Not specified in the extract (commonly effective upon making/notification; practitioners should confirm in the official gazette record)
- Primary Operative Provisions: Section 1 (Citation); Section 2 (Declaration of an authorised unit trust scheme)
- Declared Scheme: “Schroder S$ Enhanced Return Fund”
- Making Date: 25 June 2002
- Gazette/SL Reference: SL 303/2002
- Status (as provided): Current version as at 27 Mar 2026
What Is This Legislation About?
The Trustees (Authorised Unit Trust Scheme) (No. 21) Order 2002 is a short piece of Singapore subsidiary legislation that performs a specific regulatory function: it formally declares a particular collective investment product—an authorised unit trust scheme—for the purposes of the Trustees Act.
In plain language, the Order identifies one named fund, the “Schroder S$ Enhanced Return Fund”, and states that it is an “authorised unit trust scheme”. This declaration matters because the Trustees Act uses the concept of an “authorised unit trust scheme” to determine which unit trust schemes may be treated in certain ways under the statutory framework governing trustees and trust investments.
Although the Order is brief, it sits within a broader regulatory architecture. The Trustees Act regulates trustees’ ability to invest trust assets and imposes conditions and limitations designed to protect beneficiaries and ensure appropriate investment standards. By using the Minister’s power under section 83, the Order effectively “adds” a particular scheme to the category of schemes that qualify for the statutory regime.
What Are the Key Provisions?
Section 1 (Citation) provides the formal short title of the instrument: the Trustees (Authorised Unit Trust Scheme) (No. 21) Order 2002. This is standard legislative drafting, enabling practitioners to refer to the Order unambiguously in filings, compliance documentation, and legal correspondence.
Section 2 (Authorised unit trust scheme) is the operative provision. It declares that “the Schroder S$ Enhanced Return Fund is hereby declared as an authorised unit trust scheme for the purposes of the Act.” The legal effect is to bring that named fund within the statutory meaning of “authorised unit trust scheme” under the Trustees Act.
From a practitioner’s perspective, the critical point is that the declaration is scheme-specific. The Order does not create a general authorisation category for all Schroder funds or for all funds with similar investment objectives. Instead, it authorises a particular fund identified by name. This means that trustees and advisers must ensure they are dealing with the correct legal product and that the fund’s identity matches the declaration.
Enacting authority and legal basis. 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 discretionary or administrative power to designate authorised unit trust schemes. Practically, this also suggests that there is an underlying process—such as assessment of the scheme’s structure, disclosures, and compliance posture—before a scheme is designated. While the extract does not set out that process, the existence of a statutory power is important for understanding that the authorisation is not merely administrative branding; it is a legal designation with consequences under the Trustees Act.
How Is This Legislation Structured?
The Order is structured in a minimal, two-section format:
(1) Section 1: Citation (how the Order is referenced).
(2) Section 2: The substantive declaration that a named unit trust scheme is authorised for the purposes of the Trustees Act.
There are no schedules, definitions, reporting requirements, or enforcement provisions in the extract. This is typical of “authorisation orders”, which are designed to perform a narrow legal function: to designate a specific scheme as authorised. Any broader regulatory obligations (for example, ongoing compliance, disclosure, or trustee investment rules) would be found in the Trustees Act itself and potentially in other subsidiary legislation or regulatory guidance.
Who Does This Legislation Apply To?
The Order applies to persons and entities whose rights and obligations depend on whether a unit trust scheme is “authorised” under the Trustees Act. In practice, this primarily includes trustees (individual trustees, corporate trustees, and trustee companies) and trustees’ advisers who determine permissible investments for trust assets.
It also indirectly affects fund operators and distributors because the authorisation designation can influence whether the fund is suitable or permissible for trustee investment under the statutory framework. However, the Order itself does not impose direct operational duties on the fund manager; rather, it changes the legal status of the fund for the purposes of the Trustees Act.
Because the declaration is scheme-specific, trustees must verify that the investment they hold or propose to hold corresponds to “Schroder S$ Enhanced Return Fund” as designated. Where a fund is renamed, restructured, merged, or replaced, the legal question becomes whether the designated scheme remains the same legal entity/product. Practitioners should therefore treat the authorisation as a legal classification tied to the named scheme.
Why Is This Legislation Important?
Even though the Order is short, it can be highly significant in trustee investment practice. The Trustees Act framework often turns on whether an investment falls within an approved or authorised category. By declaring the Schroder S$ Enhanced Return Fund as an authorised unit trust scheme, the Minister for Law enables trustees to treat that fund as meeting the statutory threshold for the relevant purposes of the Act.
From a compliance standpoint, the authorisation can reduce uncertainty and risk. Trustees are expected to act prudently and in accordance with statutory investment rules. If a trustee invests in a unit trust scheme that is not authorised (or invests beyond permitted categories), the trustee may face legal exposure, including challenges to the propriety of the investment and potential liability depending on the circumstances and the applicable statutory and fiduciary standards.
For practitioners, the Order is also important because it illustrates how Singapore’s legal system uses targeted subsidiary legislation to update the universe of authorised investment products. Rather than amending the Trustees Act each time a new fund is approved, the Minister issues individual authorisation orders. This creates a practical need for ongoing monitoring: trustees and compliance teams must track the current status of authorisations and ensure their investment policies remain aligned with the latest designations.
Finally, the Order’s “current version as at 27 Mar 2026” status (as provided) indicates that the designation remains in force unless amended or revoked. Practitioners should still confirm whether any later amendments, replacements, or revocations exist, particularly where the fund’s structure or name may have changed over time.
Related Legislation
- Trustees Act (Cap. 337) — in particular, section 83 (power to declare authorised unit trust schemes)
Source Documents
This article provides an overview of the Trustees (Authorised Unit Trust Scheme) (No. 21) Order 2002 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.