I move:
That Seanad Éireann approves the following Order in draft:—
Trustee (Authorised Investments) Order, 1985
a copy of which Order in draft was laid before the House on 12th February, 1985.
Trustee (Authorised Investments) Order, 1985: Motion.
The Trustee (Authorised Investments) Act, 1958, contains a list of investments in which trustees may invest funds unless expressly forbidden by the instrument, if any, creating 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.
Section 2 of the 1958 Act provides that the list of authorised investments may be amended by order of the Minister for Finance. 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. Over the years changes in the list have been put forward when deemed appropriate, and the most recent order was made in December 1983.
With the draft order now before the House, I propose to authorise trustees to place trust funds in interest-bearing deposit accounts in Barclays Bank Ireland Ltd. This will bring to 35 the number of licensed banks in which trust funds may be deposited. The Central Bank have recommended that trustee status be granted in this case. The criteria on which the Central Bank base their recommendations are:
(a) The bank are, or are owned by, an institution in which the Central Bank have a high level of confidence,
(b) The bank has gross assets and gross domestic assets in excess of the minimum qualification of £25 million,
(c) The bank have a satisfactory capital level,
(d) The bank are in compliance with the Central Bank's licensing and supervision standards.
The 1958 Act requires the Minister for Finance to consult the following referees about the terms of the draft order before it is laid before the Oireachtas: 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. All of the statutory requirements have been complied with and the referees are in agreement with this draft order.
I am satisfied that the bank named in the draft order are suitable for the investment of trust funds. Therefore, I commend the motion for approval by the House.
We welcome this motion. It is important that we should have the widest possible flexibility and safeguards. I do not intend to delay the House. We accept the motion.
Question put and agreed to.