I move:
That Dáil Éireann approves the following Order in draft:
Trustee (Authorised Investments) Order, 1983, a copy of which Order in draft was laid before the House on 17 January, 1983.
The Trustee (Authorised Investments) Act, 1958, lists the investments in which trustees may invest trust funds unless forbidden by the instrument, if any, creating the trust. The trust deed of course may extend trustees' powers of investment beyond those set out in the Act. According to section 2 of the 1958 Act, the Minister for Finance may vary the authorised investments by order. Over the years changes in the list have been put forward when deemed appropriate, the most recent order having been made in 1979. Before the Minister may make the order a draft must be laid before both Houses of the Oireachtas and a resolution of approval must be passed by each House.
The draft order now before the House proposes to authorise trustees to place trust funds in interest-bearing deposit accounts in three non-associated banks. This will bring to 31 the number of licensed banks in which trust funds may be deposited. The Central Bank has recommended that trustee status be granted in these three cases. The criteria on the basis of which the Central Bank made its recommendations are:
(a) All the banks are, or are owned by, institutions in which the Central Bank has a high level of confidence,
(b) All of the banks have gross assets and gross domestic assets in excess of the minimum qualification of £15 million,
(c) All the banks have satisfactory capital levels,
(d) Each bank is in compliance with the bank's licensing and supervision standards.
Under section 2 (3) of the Trustee (Authorised Investments) Act, 1958, the Minister for Finance is obliged 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 Public Trustee, the Governor of the Central Bank, the President of the Incorporated Law Society of Ireland, the Chairman of the Irish Banks' Standing Committee and the President of the Stock Exchange — Irish Unit. All the statutory requirements in this respect have been complied with.
I am satisfied that the banks named in the draft order are secure and suitable for the investment of trust funds. The order will further increase the range of investment opportunities open to trustees. I therefore commend the motion for approval by the House.
