The Trustee Investments (Additional Powers) Order No. 2 1994

New powers of investment of trustees

2.—(1) For paragraph 10A(1) of Part II of Schedule 1 to the Trustee Investments Act 1961 there shall be substituted—

“10A.   In any units of a gilt unit trust scheme.

References in this Schedule to a gilt unit trust scheme are references to a collective investment scheme—

(a) which is an authorised unit trust scheme within the meaning of the Financial Services Act 1986, a recognised scheme within the meaning of that Act or a UCITS; and

(b) whose objective is to invest not less than 90% of the property of the scheme in loan stock, bonds and other instruments creating or acknowledging indebtedness which are transferable and which are issued or guaranteed by—

(i) the government of the United Kingdom or elsewhere,

(ii) by a local authority in the United Kingdom or in a relevant state, or

(iii) by an international organisation the members of which include the United Kingdom or a relevant state;

and, in respect of the remainder of the property of the scheme, whose objective is to invest in any instrument falling within any of paragraphs 1 to 3, 5 to 6 of Schedule 1 to the Financial Services Act 1986.”.

(2) After paragraph 15 of Part II of that Schedule, there shall be inserted—

“16.   In fixed-interest or variable interest securities issued by the Government of a relevant state.

17.   In any securities the payment of interest in which is guaranteed by the Government of a relevant state.

18.   In fixed-interest securities issued in a relevant state by any public authority or nationalised industry or undertaking in any such state.

19.   In fixed-interest or variable interest securities issued in a relevant state by the Government of any overseas territory within the Commonwealth or by any public or local authority within such a territory.

References in this paragraph to an overseas territory or to the government of such a territory shall be construed as if they occurred in the Overseas Development and Co-operation Act 1980(2).

20.   In fixed-interest or variable interest securities issued in a relevant state by—

(a) the African Development Bank;

(b) the Asian Development Bank;

(c) the Caribbean Development Bank;

(d) the International Finance Corporation;

(e) the International Monetary Fund;

(f) the International Bank for Reconstruction and Development;

(g) the Inter-American Development Bank;

(h) the European Atomic Energy Community;

(i) the European Bank for Reconstruction and Development;

(j) the European Economic Community;

(k) the European Investment Bank; or

(l) the European Coal or Steel Community.

21.   In debentures issued in a relevant state by a company incorporated in any relevant state.

22.   In loans to any authority to which this paragraph applies charged on all or any of the revenues of the authority or on a fund into which all or any of those revenues are payable, in fixed-interest or variable interest securities issued in a relevant state by any such authority in that state for the purpose of borrowing money so secured, and in deposits with any authority to which this paragraph applies by way of temporary loan made on the giving of a receipt for the loan by the treasurer or other similar officer of the authority and on the giving of an undertaking by the authority that, if requested to charge the loan as aforesaid, it will either comply with the request or repay the loan.

This paragraph applies to the following authorities, that is to say—

(a) any local authority in a relevant state; or

(b) any authority all the members of which are appointed or elected by one or more local authorities in any such state.

23.   In deposits with a mutual investment society whose head office is located in a relevant state.

24.   In loans secured on interests in property in a relevant state which corresponds to an interest in property falling within paragraph 13 of this Part of this Schedule.”.

(3) After paragraph 3 of Part III of the Schedule there shall be inserted—

“4.   In any securities issued in a relevant state by a company incorporated in that state or by any unincorporated body constituted under the law of that state, not being (in either case) securities falling within Part II of this Schedule or paragraph 6 of this Part of this Schedule.

5.   In shares in a mutual investment society whose head office is located in a relevant state.

6.   In any units of a collective investment scheme which is—

(a) a recognised scheme within the meaning of the Financial Services Act 1986(3) which is constituted in a relevant state; or

(b) a UCITS;

and which does not fall within Part II of this Schedule.”.

(1)

Paragraph 10A was inserted by section 150 of the Finance Act 1982 (c. 39); and has been amended by section 822 of, and paragraphs 32 (Table) of Schedule 29 to, the Income and Corporation Taxes Act 1988 (c. 1). It refers to a provision of the Income and Corporation Taxes Act 1988 that was repealed by section 52(2) of, and Part IV of Schedule 19 to, the Finance Act 1990 (c. 29).

(2)

1980 c. 63.

(3)

1986 c. 60.