Statute Details
- Title: Trustees (Authorised Unit Trust Scheme) (No. 3) Order 2003
- Act Code: TA1967-S74-2003
- Legislation Type: Subsidiary legislation (SL)
- Authorising Act: Trustees Act (Cap. 337)
- Power Used: Section 83 of the Trustees Act
- Enacting Date: 11 February 2003
- Commencement: Not stated in the provided extract (practitioners should confirm from the full Gazette/legislation record)
- Current Status (as provided): Current version as at 27 Mar 2026
- Legislative Citation: SL 74/2003
- Key Provisions: Section 2 (authorisation of specified unit trust funds)
What Is This Legislation About?
The Trustees (Authorised Unit Trust Scheme) (No. 3) Order 2003 is a short Singapore subsidiary instrument that performs a specific regulatory function: it designates particular collective investment funds as “authorised unit trust schemes” for the purposes of the Trustees Act. In practical terms, the Order tells trustees and other regulated persons which unit trust funds may be treated as authorised schemes under the statutory framework governing trustees’ investments.
Under the Trustees Act, trustees generally have powers and duties regarding investments, including restrictions and requirements that depend on whether an investment is within an approved or authorised category. The authorisation mechanism is implemented through ministerial orders made under section 83 of the Trustees Act. This Order is one such ministerial designation, made to add two named DBS funds to the list of authorised unit trust schemes.
Although the Order itself is brief, it has real legal consequences. Once a fund is declared an authorised unit trust scheme, trustees can rely on that status when considering whether the fund falls within the permitted investment universe under the Trustees Act. That reduces uncertainty and supports compliance in trust administration, portfolio construction, and investment decision-making.
What Are the Key Provisions?
Section 1 (Citation). Section 1 provides the formal short title: “Trustees (Authorised Unit Trust Scheme) (No. 3) Order 2003.” This is standard drafting and primarily assists with identification and referencing of the instrument in legal documents, compliance checklists, and correspondence.
Section 2 (Authorised unit trust schemes). This is the substantive provision. Section 2 declares that the following funds are authorised unit trust schemes for the purposes of the Trustees Act:
- DBS Absolute Return Fund (Guaranteed);
- DBS Absolute Return Fund (Non-Guaranteed).
From a practitioner’s perspective, the legal effect of Section 2 is to “authorise” these specific funds—by name and by the scheme category indicated in the fund titles—for the statutory purposes of the Trustees Act. Importantly, the authorisation is not framed in general terms (e.g., “DBS Absolute Return Funds” broadly), but rather in two distinct categories: “Guaranteed” and “Non-Guaranteed.” That distinction matters because trustees typically need to know precisely which investment product is being held and whether it fits within the authorised description.
Ministerial authority and formal making. The enacting formula states that the Minister for Law makes the Order in exercise of powers conferred by section 83 of the Trustees Act. The Order is “made this 11th day of February 2003” and signed by the Permanent Secretary, Ministry of Law. While these details may appear procedural, they confirm the legal basis for the designation and help validate the instrument’s authority for compliance purposes.
Interaction with the Trustees Act. Although the extract does not reproduce the text of section 83 or the investment rules in the Trustees Act, the structure indicates that section 83 provides the mechanism for ministerial designation of authorised unit trust schemes. The Order therefore functions as a “link” between the general trustee investment regime and specific investment products offered in the market. In practice, lawyers advising trustees will treat the Order as an authoritative confirmation that these funds fall within the statutory category relevant to trustee investment permissions.
How Is This Legislation Structured?
This Order is structured in a conventional format for subsidiary legislation made under a parent Act. It contains:
- Enacting formula (identifying the power under section 83 of the Trustees Act and the Minister’s role);
- Citation provision (Section 1); and
- Substantive designation provision (Section 2), which lists the authorised unit trust schemes.
There are no additional parts, schedules, definitions, or procedural provisions in the extract. The instrument’s entire operative content is the declaration in Section 2. For practitioners, this means the legal analysis is straightforward: the key question is whether a particular fund held or proposed for investment is one of the named funds declared authorised by the Order.
Who Does This Legislation Apply To?
The Order is made “for the purposes of the Act” (the Trustees Act). Accordingly, its direct relevance is to persons who must comply with the Trustees Act’s investment framework—most notably trustees administering trusts and making investment decisions. It may also be relevant to trustee service providers, custodians, fund administrators, and advisers who support trustees in selecting investments and documenting compliance.
While the Order does not itself impose obligations on unit trust managers or investors, the authorisation status it confers can affect how trustees may lawfully invest trust assets. In other words, the Order operates as a compliance enabler: it expands the set of unit trust funds that trustees can treat as authorised under the Trustees Act. Lawyers advising trustees should therefore treat the Order as part of the compliance “source stack” alongside the Trustees Act and any other authorising orders that designate other funds.
Why Is This Legislation Important?
Even though the Trustees (Authorised Unit Trust Scheme) (No. 3) Order 2003 is short, it is important because it affects the lawfulness and defensibility of trustee investment decisions. Trustees are expected to act prudently and in accordance with the trust deed and applicable statutory requirements. When the Trustees Act includes investment permissions tied to authorised schemes, a trustee’s ability to rely on authorisation designations can be critical in avoiding breach of trust or statutory non-compliance.
From a practical standpoint, the Order reduces uncertainty. Instead of trustees having to assess whether a particular unit trust product falls within a permitted category, the ministerial designation provides an official, publicly accessible confirmation. This is especially valuable where trustees must document their investment rationale and ensure that the portfolio aligns with statutory constraints.
The Order also highlights a compliance nuance: the authorisation is fund-specific and category-specific. The inclusion of both “Guaranteed” and “Non-Guaranteed” versions indicates that the regulatory designation tracks product characteristics that may affect risk profile and trustee suitability. Lawyers should therefore ensure that the exact fund name and class/category held by the trust match the authorised description in the Order, rather than relying on broad brand recognition.
Related Legislation
- Trustees Act (Cap. 337) — in particular, section 83 (the authorising provision for ministerial orders declaring authorised unit trust schemes)
- Other “Authorised Unit Trust Scheme” Orders made under section 83 (practitioners should check the legislation timeline and consolidated lists to confirm current authorisations)
Source Documents
This article provides an overview of the Trustees (Authorised Unit Trust Scheme) (No. 3) Order 2003 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.