I move:
That Dáil Éireann approves the following Order in draft:
Trustee (Authorised Investments) (No. 2) Order, 1983,
a copy of which Order in draft was laid before the House on 26th October, 1983.
The investment powers of trustees are set out in the Trustee (Authorised Investments) Act of 1958. They may of course be modified by the terms of the instrument setting up the trust. The chief purpose of the legislation is to protect the interests of the beneficiaries of trusts by providing trustees with a range of suitable investment outlets. The Minister for Finance is empowered under section 2 of the Act to amend the list of authorised investments by order. Before an order may be made, a draft must be laid before both Houses of the Oireachtas and each House must pass a resolution of approval. The present draft order has already been approved by the Seanad. It is the second draft order to be laid before the House this year and, if approved, will mean that, in 1983, six additions will have been made to the list of trustee authorised investment.
In the present Order, I propose to authorise trustees to invest trust funds in interest-bearing deposit accounts in the following licensed banks:
(a) First Southern Bank Limited,
(b) Credit Finance Bank Limited,
(c) Hong Kong and Shanghai Banking Corporation.
These three banks have been recommended for trustee status by the Central Bank, the banking supervisory authority. First Southern Bank and Credit Finance Bank have been in operation for several years, providing a wide range of banking services. The Hong Kong and Shanghai Banking Corporation has been operating in Ireland for the last four years and is a member of one of the largest banking groups in the world.
The 1958 Act requires that the following referees must be consulted about the terms of the draft order before it is laid before the Houses of the Oireachtas:
(a) A Judge of the High Court nominated by the Chief Justice;
(b) The Governor of the Central Bank;
(c) The Public Trustee;
(d) The Chairman of the Irish Banks' Standing Committee;
(e) The President of the Incorporated Law Society of Ireland;
(f) The President of the Stock Exchange — Irish.
All of the statutory requirements have been complied with and the referees are in agreement with this draft order.
I am satisfied that the banks named in the draft order provide suitable investment opportunities for trust funds. I therefore commend the motion for approval by the House.