S.I. No. 595/2002 - Trustee (Authorised Investments) Order 1998 (Amendment) Order, 2002

1. A trustee shall not invest in instruments denominated in a currency other than the currency of the State if, immediately after the investment, the proportion of the trust funds invested in currencies other than the currency of the State would exceed 40 per cent. of those funds.

2. (1) A trustee shall not invest in the equity of a company if, immediately after the investment, the proportion of the trust funds invested in that equity would exceed 10 per cent. of those funds.

(2) Nothing in this paragraph shall prevent a trustee from taking up a bonus issue of shares, or a rights issue of shares, accruing to an investment of the trust funds in the equity of a company.

3. (1) In making an investment of trust funds a trustee shall take due account of -

(a) the nature of the liabilities of the Trust,

(b) an appropriate diversification of investments, including appropriate diversification of credit and counterparty risks, and

(c) an appropriate liquidity of investments.

(2) A trustee shall review the investment of trust funds at intervals of not more than six months.”

GIVEN under my Official Seal, this 18th day of December, 2002.

CHARLIE McCREEVY

Minister for Finance.

EXPLANATORY NOTE

(This note is not part of the Instrument and does not purport to be a legal interpretation)

This Order amends the Second Schedule to the Trustee (Authorised Investments) Order, 1998 which specifies conditions to apply to the investment of trust funds affected by the

Trustee (Authorised Investments) Act, 1958

. Its main effect is to remove the restriction on the proportion of trust funds which may be invested in a single collective investment scheme or insurance contract and to replace this with a requirement to have regard to certain considerations such as concentration of investment risk. The Order comes into operation on 2 January, 2003.

I, Charlie McCreevy, Minister for Finance, in exercise of the powers conferred on me by subsection (1) of section 2 (inserted by

section 80

of the

Central Bank Act, 1997

(No. 8 of 1997)) of the

Trustee (Authorised Investments) Act, 1958

(No. 8 of 1958), and having complied with subsection (3) of the said section 2, hereby order as follows