Statute Details
- Title: Trustees (Authorised Unit Trust Scheme) (No. 5) Order 2002
- Act Code: TA1967-S126-2002
- Type: Subsidiary Legislation (SL)
- Authorising Act: Trustees Act (Cap. 337)
- Enacting Power: Powers conferred by section 83 of the Trustees Act
- Enacting Formula / Citation: “This Order may be cited as the Trustees (Authorised Unit Trust Scheme) (No. 5) Order 2002.”
- Key Provisions:
- Section 1 (Citation)
- Section 2 (Authorised unit trust scheme)
- Commencement Date: Not stated in the extract (Order made on 15 March 2002; published as SL 126/2002 on 19 March 2002)
- Publication / SL Number: SL 126/2002
- Status: Current version as at 27 Mar 2026 (per provided metadata)
- Scheme Designation: “The Schroder S$ China Capital Protection Fund — April 2006”
- Maker: Permanent Secretary, Ministry of Law (CHAN HENG LOON ALAN)
What Is This Legislation About?
The Trustees (Authorised Unit Trust Scheme) (No. 5) Order 2002 is a short piece of subsidiary legislation that performs a specific regulatory function: it formally declares a particular unit trust scheme to be an “authorised unit trust scheme” for the purposes of the Trustees Act.
In practical terms, this Order is not a comprehensive framework for unit trusts. Instead, it is a designation instrument—a legal mechanism used by the Minister for Law to recognise that a named scheme meets the statutory criteria and should be treated as authorised under the Trustees Act regime. Once a scheme is authorised, it can be used in contexts governed by the Trustees Act (for example, where trustees are permitted or required to invest in certain authorised collective investment products).
The scope of this Order is therefore narrow and targeted. It identifies one scheme—“The Schroder S$ China Capital Protection Fund — April 2006”—and declares it authorised. The Order’s legal effect is to bring that scheme within the statutory category that triggers the consequences set out in the Trustees Act.
What Are the Key Provisions?
Section 1 (Citation) is a standard provision. It confirms how the Order may be cited in legal documents and correspondence. While it has no substantive regulatory effect, it is important for proper legal referencing.
Section 2 (Authorised unit trust scheme) is the core operative provision. It states that “The Schroder S$ China Capital Protection Fund — April 2006 is hereby declared as an authorised unit trust scheme for the purposes of the Act.” This single sentence is the entire substantive content of the Order.
From a practitioner’s perspective, the legal significance of Section 2 lies in the phrase “for the purposes of the Act.” The Trustees Act uses the concept of authorised unit trust schemes to determine what trustees may do (and, in some circumstances, what they must do) when managing trust property. Although the extract does not reproduce the Trustees Act provisions, the typical legal consequence of authorisation is that the scheme becomes eligible for trustee investment and is treated as falling within the statutory permissions or safeguards designed for trustees.
It is also important to note the precision of identification. The scheme is not described generically as “Schroder China Capital Protection Fund” but rather by a specific name and reference: “Schroder S$ China Capital Protection Fund — April 2006.” This suggests that the authorisation is tied to a particular series, launch date, or tranche (April 2006). For lawyers advising trustees, this precision matters: the authorisation may not automatically extend to other series, later versions, or differently named variants unless separately authorised.
Finally, the enacting formula indicates that the Minister for Law is acting under section 83 of the Trustees Act. That authorising provision is the legal foundation for the Minister’s power to make orders declaring schemes authorised. In practice, this means that the designation is not merely administrative; it is a statutory act with legal consequences, and its validity depends on compliance with the enabling power and any conditions or processes embedded in the Trustees Act.
How Is This Legislation Structured?
This Order is extremely concise and consists of an enacting formula followed by two numbered sections.
Section 1 deals with citation. Section 2 is the operative provision that declares the named unit trust scheme to be authorised. There are no schedules, definitions, reporting requirements, or enforcement provisions in the Order itself. The regulatory framework that governs trustees and investments is located in the Trustees Act and any related subsidiary legislation or notices.
Accordingly, the structure of the Order reflects its function: it is a designation instrument rather than a regulatory code. Lawyers should therefore read it alongside the Trustees Act provisions that refer to “authorised unit trust schemes” to understand the full legal effect.
Who Does This Legislation Apply To?
The Order applies to the extent that the Trustees Act applies to trustees and their investment powers or obligations. While the Order itself does not address trustees directly, it declares a scheme authorised “for the purposes of the Act.” Therefore, the practical beneficiaries are trustees (and those advising them) who need to determine whether a particular unit trust scheme is eligible under the statutory investment regime.
In addition, the authorisation may be relevant to fund managers, distributors, and scheme operators because authorisation can affect whether the scheme can be held by trustees in trust structures governed by the Trustees Act. However, the Order is not a licensing instrument for the scheme in the broader financial regulatory sense; it is specifically about the scheme’s status under the Trustees Act.
Why Is This Legislation Important?
Although the Order is short, it can be highly consequential in trust administration. Trustees must manage trust property prudently and within the powers granted by law. Where the Trustees Act uses authorised unit trust schemes as a category, the authorisation of a particular scheme can determine whether trustees may invest in it, whether they can continue holding it, and whether the investment is treated as compliant with statutory requirements.
For legal practitioners, the key value of this Order is that it provides clear legal confirmation of authorisation status for a named scheme. In investment disputes, compliance reviews, or due diligence processes, being able to point to a specific statutory instrument—by citation and SL number—can be critical. It reduces uncertainty and supports defensible decision-making when trustees select investments for trust portfolios.
From a risk management standpoint, the specificity of the scheme name (“— April 2006”) also matters. Trustees and their advisers should confirm that the scheme they intend to hold corresponds exactly to the authorised scheme. If a trustee invests in a different series or a later iteration that is not covered by the authorisation, the investment could fall outside the statutory category, potentially affecting compliance and exposing trustees to criticism for breach of investment duties.
Finally, the fact that the Order is “current version as at 27 Mar 2026” (per the provided metadata) indicates that the designation remains in force in the consolidated legislative record. Practitioners should still verify whether any subsequent amendments, revocations, or replacement orders exist for the same scheme or related series, but the provided status suggests that the authorisation has not been superseded in the consolidated version.
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. 5) Order 2002 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.