Statute Details
- Title: Trustees (Authorised Unit Trust Scheme) (No. 3) Order 2004
- Act Code: TA1967-S51-2004
- Type: Subsidiary Legislation (SL)
- Authorising Act: Trustees Act (Cap. 337), section 83
- Enacting authority: Minister for Law
- Enacting formula (summary): Made under powers conferred by section 83 of the Trustees Act
- Legislation citation: “No. S 51” (SL 51/2004)
- Date made: 30 January 2004
- Commencement date: Not stated in the provided extract (practitioners should confirm from the official publication)
- Status: Current version as at 27 Mar 2026 (per the legislation portal)
- Key provisions (from extract): Section 1 (Citation); Section 2 (Authorised unit trust scheme)
- Authorised scheme named: Schroder S$ Bond Fund
What Is This Legislation About?
The Trustees (Authorised Unit Trust Scheme) (No. 3) Order 2004 is a short piece of Singapore subsidiary legislation made under the Trustees Act. Its practical function is to designate a particular collective investment product—the “Schroder S$ Bond Fund”—as an authorised unit trust scheme for the purposes of the Trustees Act.
In plain language, the Order does not create a new regulatory regime for unit trusts from scratch. Instead, it operates as a legal “gatekeeping” instrument: it tells trustees (and other persons who rely on the Trustees Act framework) that a specified unit trust scheme is approved/recognised for the Act’s purposes. This matters because the Trustees Act contains provisions that regulate what trustees may do with trust assets, including whether certain investments are permitted or treated as suitable under the statutory scheme.
Because the Order is made under section 83 of the Trustees Act, its scope is limited and targeted. It is essentially an administrative designation order: once the scheme is declared “authorised,” trustees can treat it as falling within the category of investments contemplated by the Act. For practitioners, the key is understanding how this designation interacts with trustee investment powers and any statutory conditions that attach to “authorised unit trust schemes.”
What Are the Key Provisions?
Section 1 (Citation) provides the formal name by which the Order may be cited. This is standard legislative housekeeping, but it is important for legal referencing in filings, compliance documentation, and correspondence with regulators or counterparties.
Section 2 (Authorised unit trust scheme) is the substantive provision. It states that “The Schroder S$ Bond Fund is hereby declared as an authorised unit trust scheme for the purposes of the Act.” This single sentence is the entire operative effect of the Order. The legal consequence is that the Schroder S$ Bond Fund is brought within the statutory category of authorised unit trust schemes under the Trustees Act.
Although the extract does not reproduce the Trustees Act provisions, the practitioner should read section 2 together with the relevant sections of the Trustees Act that refer to “authorised unit trust schemes.” Typically, such references determine whether trustees may invest trust property in those schemes, and/or whether such investments are treated as authorised or permissible without needing additional approvals. The designation therefore has direct implications for trustees’ investment decisions, portfolio construction, and compliance with statutory duties.
Made date and ministerial authority. The Order records that it was made by the Minister for Law on 30 January 2004. The enacting formula indicates it is made in exercise of powers under section 83 of the Trustees Act. For legal practice, this confirms the statutory basis for the designation and helps validate the instrument’s authority if challenged or relied upon in disputes.
How Is This Legislation Structured?
The Order is structured in a minimal format, consistent with designation orders. Based on the provided extract, it contains:
(1) Section 1: Citation (how the Order is referred to).
(2) Section 2: The operative designation of the authorised unit trust scheme (naming the Schroder S$ Bond Fund).
There are no schedules, definitions, or detailed conditions in the extract. This is typical for orders that simply declare a specified scheme to be authorised. Practitioners should therefore focus on the cross-referenced framework in the Trustees Act—because the “real” obligations and permissions are likely located there, not in the Order itself.
Who Does This Legislation Apply To?
The Order applies to persons who act for the purposes of the Trustees Act, most notably trustees who manage trust property and must comply with statutory investment powers and restrictions. While the Order itself is addressed to the legal status of a unit trust scheme, the practical beneficiaries are trustees and those advising them, because the designation affects whether a particular investment is treated as authorised under the Act.
In addition, the Order may be relevant to trustees’ investment committees, fund administrators, custodians, and law firms advising on trust administration and compliance. Even though the Order does not impose obligations directly on the fund manager in the extract, the fund’s authorised status can influence how trustees evaluate suitability, permitted investments, and documentation requirements.
Why Is This Legislation Important?
Despite its brevity, the Order can be highly significant in trust administration. Trustees operate under strict duties and must ensure that their investment choices are lawful. If a unit trust scheme is declared “authorised” under the Trustees Act, trustees may be able to treat it as within the permitted universe of investments contemplated by statute. This can reduce uncertainty and compliance risk when trustees are selecting investments for trust portfolios.
From a compliance perspective, the Order provides a clear legal reference point: it identifies the specific scheme (Schroder S$ Bond Fund) by name. Practitioners can use this to support investment decisions, justify portfolio allocations, and document the basis for selecting the scheme under the statutory framework.
From a dispute and litigation risk perspective, authorised status can matter when trustees’ conduct is scrutinised. If a trustee invests in a scheme that is not authorised (or invests outside the statutory framework), the trustee may face allegations of breach of duty or unlawful investment. Conversely, where the trustee relies on a valid designation order, it strengthens the argument that the investment was made in accordance with statutory permissions.
Finally, the “current version as at 27 Mar 2026” status indicates that the designation remains in force as of that date (subject to any later amendments or revocations not shown in the extract). Practitioners should still verify the latest version and check the legislation timeline for any changes, because authorised status can be amended, replaced, or withdrawn by subsequent orders.
Related Legislation
- Trustees Act (Chapter 337) — in particular, section 83 (the enabling provision for making orders declaring authorised unit trust schemes)
Source Documents
This article provides an overview of the Trustees (Authorised Unit Trust Scheme) (No. 3) Order 2004 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.