Statute Details
- Title: Trustees (Authorised Unit Trust Scheme) (No. 4) Order 2003
- Act Code: TA1967-S194-2003
- Legislation Type: Subsidiary Legislation (SL)
- Authorising Act: Trustees Act (Cap. 337)
- Key Enabling Provision: Section 83 of the Trustees Act
- Legislative Instrument Number: SL 194/2003
- Date Made: 7 April 2003
- Citation: Trustees (Authorised Unit Trust Scheme) (No. 4) Order 2003
- Current Version Status: Current version as at 27 Mar 2026 (per provided extract)
- Key Provision (Extract): Section 2 declares specified funds as “authorised unit trust schemes” for purposes of the Trustees Act
What Is This Legislation About?
The Trustees (Authorised Unit Trust Scheme) (No. 4) Order 2003 is a short but legally significant subsidiary instrument made under the Trustees Act. Its core function is to “authorise” particular unit trust funds so that they can be treated as authorised unit trust schemes for the purposes of the Trustees Act.
In plain language, the Order does not create a new regulatory regime from scratch. Instead, it operates as a gatekeeping mechanism: it identifies specific funds—by name—that qualify as authorised unit trust schemes. Once a fund is declared authorised under this Order, trustees and other persons acting under the Trustees Act can rely on that status when making investments or administering trust property, subject to the requirements of the parent Act.
Because the instrument is an “Order” made by the Minister for Law, it reflects a targeted, fund-specific approval process. The legal effect is primarily about eligibility and permitted investment categories under the Trustees Act, rather than about the internal operation of the unit trusts themselves.
What Are the Key Provisions?
Section 1 (Citation) provides the formal name by which the instrument may be cited. While this is standard drafting, it matters for legal referencing, compliance documentation, and citation in trustee resolutions, investment policies, and legal opinions.
Section 2 (Authorised unit trust schemes) is the substantive provision. It declares that the following funds are “authorised unit trust schemes for the purposes of the Act”:
(a) Schroder US$ Enhanced Income Fund; and
(b) Schroder Enhanced Payout Portfolio.
This declaration is the legal trigger for the funds’ authorised status. For practitioners, the practical question is not merely whether the fund exists, but whether the fund is within the scope of the authorisation as declared by the Order. The names are therefore critical: investment documentation, trust deeds, and trustee investment schedules should reflect the authorised scheme names accurately to avoid reliance on an incorrect or outdated designation.
Enabling authority and ministerial power. The enacting formula states that the Minister for Law makes the Order “in exercise of the powers conferred by section 83 of the Trustees Act.” This indicates that the authorisation is part of the statutory framework governing trustees’ investment powers and duties. Although the extract does not reproduce section 83, the structure implies that section 83 empowers the Minister to declare particular unit trust schemes as authorised, likely based on criteria such as suitability, regulatory oversight, or compliance with conditions set out in the Trustees Act.
Made date and legal certainty. The Order was made on 7 April 2003. For legal work, the date made (and any commencement date, if applicable in the full text) can be relevant when assessing whether a trustee’s investment decision occurred after the fund became authorised. Where disputes arise—such as allegations of improper investment—chronology can be decisive.
How Is This Legislation Structured?
The instrument is structured in a very concise format typical of fund-specific authorisation orders. It contains:
(1) Enacting formula (identifying the enabling power under section 83 of the Trustees Act and the Minister’s authority);
(2) Section 1 (citation); and
(3) Section 2 (the list of authorised unit trust schemes).
There are no additional parts, schedules, or conditions shown in the provided extract. That does not necessarily mean there are no conditions in the full legal instrument; however, based on the extract, the operative effect is achieved entirely through the declaration in section 2.
Who Does This Legislation Apply To?
The Order applies indirectly to trustees and persons whose powers and duties are governed by the Trustees Act. While the Order itself is addressed to the legal status of certain unit trust funds, the beneficiaries of that status are trustees who must decide what investments are permissible under the Act.
In practice, the Order is relevant to:
(i) trustees administering trust property and making investment decisions;
(ii) trust companies and professional trustees implementing investment policies consistent with statutory requirements;
(iii) legal practitioners advising on trustee investment powers, compliance, and risk; and
(iv) parties involved in trust administration (e.g., investment managers acting on trustee instructions), insofar as they need to ensure that the trustee’s chosen funds fall within authorised categories.
It is also relevant to any person who relies on the authorised status for compliance purposes. For example, if a trustee’s investment schedule or internal compliance checklist references “authorised unit trust schemes” under the Trustees Act, this Order is one of the legal sources that may be cited to justify inclusion of the specified Schroder funds.
Why Is This Legislation Important?
Although the Order is brief, its importance lies in its effect on investment permissibility under the Trustees Act. Trustees are subject to statutory constraints and duties, including duties relating to proper investment and compliance with the trust’s governing framework. Authorised unit trust scheme status can be a key element in demonstrating that a trustee’s investment is within permitted categories.
From a compliance and risk perspective, the authorisation reduces uncertainty. Instead of relying on general investment discretion alone, trustees can point to a specific ministerial declaration that the named funds are authorised for the purposes of the Act. This can be particularly valuable in:
(a) audit and governance (showing statutory alignment);
(b) internal approvals (supporting investment committee decisions); and
(c) dispute prevention (helping rebut claims that an investment was outside statutory authority).
For practitioners, the Order also highlights a common legal reality in trust law administration: statutory investment regimes often depend on lists and declarations that are updated over time. Even where a fund is well-known or widely marketed, its legal status for trustee investment purposes depends on whether it has been declared authorised under the relevant instruments. Accordingly, lawyers should check the legislation timeline and current version status before advising, especially where the fund’s name, structure, or share class may have changed since the original authorisation.
Finally, because the Order is “(No. 4),” it suggests there are multiple authorisation orders. This means that a practitioner should not treat a single order as exhaustive. Instead, it should be cross-checked against other “authorised unit trust scheme” orders and any amendments or replacements to ensure the trustee’s investment universe is complete and current.
Related Legislation
- Trustees Act (Cap. 337) — in particular, section 83 (the enabling provision for making authorisation orders)
- Other “Trustees (Authorised Unit Trust Scheme)” Orders (e.g., earlier or later numbered orders that may declare additional funds)
Source Documents
This article provides an overview of the Trustees (Authorised Unit Trust Scheme) (No. 4) Order 2003 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.