Statute Details
- Title: Trustees (Authorised Unit Trust Scheme) Order 2004
- Act Code: TA1967-S18-2004
- Legislation Type: Subsidiary legislation (Order)
- Authorising Act: Trustees Act (Cap. 337), in particular section 83
- Enacting Formula: Made by the Minister for Law pursuant to powers under section 83 of the Trustees Act
- Citation: Trustees (Authorised Unit Trust Scheme) Order 2004
- Key Provision(s): Section 1 (citation); Section 2 (declaration of an authorised unit trust scheme)
- Declared Scheme: The Schroder Intelligent Equity Fund
- Date Made: 8 January 2004
- Legislative Status (as provided): Current version as at 27 March 2026
What Is This Legislation About?
The Trustees (Authorised Unit Trust Scheme) Order 2004 is a short piece of subsidiary legislation that performs a single, targeted legal function: it declares a specific collective investment product—the Schroder Intelligent Equity Fund—to be an “authorised unit trust scheme” for the purposes of the Trustees Act (Cap. 337).
In practical terms, the Order matters because the Trustees Act regulates what kinds of investments trustees may make (and, depending on the relevant provisions of the Act, what kinds of schemes may be treated as suitable or permissible trust investments). By declaring a particular unit trust scheme to be “authorised”, the Minister for Law effectively places that scheme within the statutory category that trustees and trust administrators can rely on when considering investments.
Although the Order itself contains only two operative provisions, it sits within a broader regulatory framework. The authorising power in section 83 of the Trustees Act indicates that the legislature intended for the executive to designate particular schemes as authorised, rather than requiring Parliament to pass a bespoke Act for each scheme.
What Are the Key Provisions?
Section 1 (Citation) provides the formal short title of the instrument. This is standard drafting: it allows practitioners to refer to the Order quickly and consistently in correspondence, filings, and legal submissions.
Section 2 (Authorised unit trust scheme) is the substantive provision. It states that the Schroder Intelligent Equity Fund is hereby declared as an authorised unit trust scheme for the purposes of the Trustees Act.
This declaration is the legal “hook” that changes the scheme’s status under the Trustees Act. Once a scheme is declared authorised, trustees can treat it as falling within the relevant statutory category. For lawyers advising trustees, this is often the difference between an investment being clearly within an authorised framework versus requiring additional analysis, approvals, or justification under general trustee investment principles.
Legal effect and reliance: While the Order does not spell out the consequences in detail (those consequences are found in the Trustees Act itself), the declaration is typically relied upon in trust administration. For example, when trustees review their investment policy, consider diversification, or assess whether a proposed investment is permissible, the authorised status can streamline the legal assessment. In disputes, the authorised designation can also be relevant to show that the trustees acted on a recognised statutory basis rather than on ad hoc judgment.
Scope of designation: The Order designates a named scheme. That matters because “authorised unit trust scheme” status is not automatically conferred on all funds managed by the same manager or all funds with similar names. Practitioners should therefore verify that the product being considered is indeed the Schroder Intelligent Equity Fund as described in the Order, and that there has been no subsequent rebranding, restructuring, or replacement that could affect whether the investment corresponds to the declared scheme.
How Is This Legislation Structured?
The Order is extremely concise and is structured as follows:
Part/Sections: The instrument contains an Enacting Formula followed by two provisions.
Section 1 sets out the citation.
Section 2 declares the authorised unit trust scheme.
There are no schedules, definitions sections, or procedural provisions in the extract provided. The absence of additional content is consistent with the nature of an authorisation order: it is designed to be a formal designation instrument rather than a comprehensive regulatory code.
Who Does This Legislation Apply To?
The Order applies primarily to trustees and those advising or acting for trustees in relation to investments under the Trustees Act. The declared status of the Schroder fund is relevant to how trustees discharge their duties when selecting investments.
In addition, the Order may be practically relevant to trustees’ investment managers, custodians, fund administrators, and legal counsel who need to confirm whether a particular unit trust scheme falls within the statutory category of authorised schemes. While the Order does not impose direct obligations on the fund manager in the text provided, the designation can affect how the scheme is marketed or used in trust portfolios and how compliance teams document investment decisions.
Why Is This Legislation Important?
Even though the Trustees (Authorised Unit Trust Scheme) Order 2004 is short, it can be highly significant in trust practice. Trustee investment decisions are often scrutinised for compliance with statutory requirements and for adherence to fiduciary duties. An “authorised unit trust scheme” designation provides a clear legal basis for trustees to include the scheme within their investment universe.
From a risk-management perspective, authorised status can reduce uncertainty. When trustees are selecting investments, they must consider whether the investment is permitted and whether it aligns with the terms of the trust and the applicable statutory framework. A formal declaration by the Minister for Law under section 83 of the Trustees Act supports the argument that the scheme meets the statutory threshold for authorisation.
For practitioners, the Order also serves as a reminder that subsidiary legislation can have real operational consequences. The legal status of a fund can hinge on a specific instrument, and counsel should therefore check the relevant authorisation orders (and their versions) when advising on trustee investments. The provided status—“current version as at 27 March 2026”—suggests that the designation remains in force as of that date, but lawyers should still confirm whether any amendments, revocations, or replacement instruments exist in the legislation timeline.
Related Legislation
- Trustees Act (Chapter 337) — in particular section 83 (the authorising provision for making such orders)
Source Documents
This article provides an overview of the Trustees (Authorised Unit Trust Scheme) Order 2004 for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.