Statute Details
- Title: Trustees (Authorised Unit Trust Scheme) (No. 22) Order 1999
- Act Code: TA1967-S427-1999
- Type: Subsidiary Legislation (SL)
- Authorising Act: Trustees Act (Cap. 337)
- Legislative Instrument Number: SL 427/1999
- Enacting Formula / Power: Made under section 83 of the Trustees Act
- Date Made: 1 October 1999
- Commencement: Not stated in the extract (practitioners should confirm in the official publication)
- Status: Current version as at 27 March 2026
- Key Provisions (from extract): Sections 1 (Citation) and 2 (Authorised unit trust scheme)
What Is This Legislation About?
The Trustees (Authorised Unit Trust Scheme) (No. 22) Order 1999 is a short piece of subsidiary legislation that performs a specific regulatory function: it designates a particular collective investment vehicle—an “authorised unit trust scheme”—for the purposes of the Trustees Act. In practical terms, the Order tells the market and regulators that the named unit trust scheme has been approved/recognised under the statutory framework governing trustees and related trust arrangements.
Although the Order itself is brief, its legal effect can be significant. Under the Trustees Act, certain activities involving trustees and unit trust schemes may depend on whether a scheme is “authorised”. The authorisation status can influence how trustees may administer, hold, or deal with interests in the scheme, and it can affect compliance expectations for parties involved in the scheme’s operation and distribution.
In this particular Order, the Minister for Law exercises powers under section 83 of the Trustees Act to declare that Aberdeen American Opportunities Fund is an authorised unit trust scheme. The Order therefore operates as a targeted designation instrument rather than a comprehensive regulatory code.
What Are the Key Provisions?
Section 1 (Citation) provides the formal title by which the Order may be cited. This is standard legislative drafting: it ensures that legal practitioners, regulators, and market participants can refer to the instrument consistently in filings, correspondence, and compliance documentation.
Section 2 (Authorised unit trust scheme) is the substantive provision. It states that Aberdeen American Opportunities Fund is hereby declared as an authorised unit trust scheme for the purpose of the Trustees Act. This declaration is the entire operative effect of the Order. Once the scheme is declared authorised, it falls within the statutory category that the Trustees Act contemplates.
From a practitioner’s perspective, the key question is not merely “what is the scheme called?” but “what legal consequences attach to authorised status under the Trustees Act?” The Order does not spell out those consequences; instead, it relies on the architecture of the Trustees Act. Accordingly, lawyers typically treat such an Order as a “trigger” document: it supplies the factual predicate (authorised status) needed to apply the relevant provisions of the parent Act.
Enacting power and ministerial action are also important. The enacting formula indicates that the Minister for Law makes the Order “in exercise of the powers conferred by section 83 of the Trustees Act.” This matters for validity and for understanding the decision-making authority. It signals that the authorisation is not automatic; it is a ministerial designation under a statutory discretion or framework. In disputes or compliance reviews, parties may need to confirm that the correct statutory power was used and that the designation is properly recorded.
How Is This Legislation Structured?
This Order is extremely compact and consists of a short legislative structure:
(1) Enacting formula — sets out the statutory basis (section 83 of the Trustees Act) and the ministerial authority.
(2) Section 1 (Citation) — provides the short title.
(3) Section 2 (Authorised unit trust scheme) — declares the named scheme authorised for the purposes of the Trustees Act.
There are no Parts, schedules, or detailed conditions in the extract. The instrument is best understood as a designation order rather than a regulatory regime. Practitioners should therefore read it together with the Trustees Act provisions that govern trustees’ dealings with unit trust schemes and any compliance requirements that depend on authorisation.
Who Does This Legislation Apply To?
The Order applies to the extent that it designates Aberdeen American Opportunities Fund as an authorised unit trust scheme under the Trustees Act. While the Order is directed at the scheme’s status, its practical reach extends to parties whose rights and obligations are affected by that status—most notably trustees and other regulated persons who administer, manage, or hold interests in unit trust schemes in the course of trust arrangements.
In practice, the Order is relevant to:
- Trustees who need to determine whether a unit trust scheme qualifies for the purposes of the Trustees Act;
- Fund operators/management and their compliance teams, who must ensure that the scheme’s authorisation status is accurately represented and maintained;
- Distributors and intermediaries involved in marketing or dealing with units, where authorisation may affect eligibility, documentation, or regulatory disclosures; and
- Legal advisers conducting due diligence on trust investments and compliance with statutory requirements.
Because the Order itself does not specify who must do what, the scope is best understood by reference to the Trustees Act. The authorisation designation is the legal “hook” that activates the relevant statutory consequences for those who rely on the scheme’s authorised status.
Why Is This Legislation Important?
Even though the Order is brief, it can be crucial in investment and trust governance. Authorised status under the Trustees Act can be a key eligibility criterion for trustees when selecting or holding unit trust investments. For practitioners, this means the Order can directly affect advice on whether a proposed investment is permissible, how it should be documented, and what compliance steps may be required.
From a risk management standpoint, the Order provides legal certainty. Without an authorisation designation, trustees may face uncertainty about whether the scheme fits within the statutory framework. Such uncertainty can lead to conservative investment restrictions, delays in implementation, or heightened legal exposure if a trustee holds units in a scheme that is later found not to be authorised for the relevant statutory purpose.
Finally, the instrument’s “current version” status as at 27 March 2026 indicates that the designation remains in force (subject to any later amendments, revocations, or changes in the underlying scheme’s status that may occur outside the extract). Lawyers should nonetheless verify whether there have been subsequent orders affecting the scheme, whether the scheme name has changed, and whether any conditions or regulatory developments have altered the practical effect of the authorisation.
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. 22) Order 1999 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.