I move:
That Dáil Éireann approves the following Order in draft:
Trustee (Authorised Investments) Order, 1979,
a copy of which Order in draft was laid before the House on 24 May, 1979.
The Trustee (Authorised Investments) Act, 1958, defines the investments in which trustees may invest trust funds unless expressly forbidden by the instrument, if any, creating the trust. Equally, the trust deed may confer wider powers of investment but many trusts and analogous funds are restricted to the investments authorised under the Act. The Minister for Finance may vary the authorised investments by order.
The list of authorised trustee investments is kept under active review and changes are proposed as the need arises. As part of this process I am now laying before the House a draft order which would add three non-associated banks and one building society to the list of authorised trustee investments.
Following consultation with the Central Bank, their recommendation has been accepted that the three non-associated banks named in the draft order be included in the list of authorised trustee investments. The addition of these banks will bring the total number of licensed banks on the list to 28, comprising all the major domestic and foreign banks in the State. This increase will improve the range of investment opportunities open to trustees.
The Trustee (Authorised Investments) Order, 1977, added building societies to the list of authorised investments for the first time. On this occasion I propose to add one further building society to that list. I am satisfied that this building society is suitable for inclusion having met the criteria to be observed by building societies qualifying for trustee status. This brings to six the number of building societies qualifying for trustee status and they represent the vast bulk of the resources of the building society movement. The inclusion of building societies as trustee authorised investments also emphasised the important function played by these institutions in helping finance the community's housing needs.
The Minister for Finance is obliged under the Trustee (Authorised Investments) Act, 1958, to consult with the following persons in regard to the terms of any order he proposes to make to vary the list of investments. A judge of the High Court nominated by the Chief Justice, the Governor of the Central Bank, the Public Trustee, the Chairman of the Irish Banks' Standing Committee, the President of the Incorporated Law Society of Ireland and the President of the Stock Exchange—Irish Unit. All the statutory requirements in this regard have been complied with.
I am satisfied that the additions now proposed to the trustee list are secure and suitable for the investment of trust funds and will improve the range of investment opportunities open to trustees. I therefore commend the motion for approval of the House.
