Unit Trusts Act, 1972

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Orders in relation to unit trust schemes.

10.—(1) The Minister may by order make such provision as he reasonably considers necessary for the protection of the interests of persons participating as beneficiaries under any trusts created under registered unit trust schemes.

(2) Without prejudice to the generality of subsection (1) of this section, an order under this section—

(a) may provide that the prices at which the manager under a registered unit trust scheme buys and sells units of the scheme and the yield from the units shall be respectively calculated in the manner specified in the order.

(b) may provide that accounts relating to the trusts created under the scheme shall be kept in such form as may be specified in the order and may specify, for the purposes of section 16 (1) of this Act, such of those accounts as the Minister thinks appropriate,

(c) may prohibit or regulate (in such manner as may be specified in the order) the publishing by or on behalf of the manager under the scheme of advertisements or documents containing any statement with respect to the sale price of units of the scheme, or the payments or other benefits received or likely to be received by holders of such units, or containing any invitation to buy such units unless the advertisement or document in question also contains a statement of the yield from the units and statements giving such information in relation to such other matters (if any) as may be specified in the order,

(d) may provide that before any advertisement or document containing any statement with respect to the sale price of units of the scheme or the yield therefrom, or containing any invitation to buy or offer to buy units, is published by or on behalf of the manager under the scheme, the trustee under the scheme shall be given a reasonable opportunity of considering the terms of the advertisement or document, and that the advertisement or document shall not be so published if, within a reasonable time after the advertisement or document first comes under his consideration, he notifies his disapproval of the terms thereof in writing to the manager,

(e) may provide for the winding-up of the scheme if the registration of the scheme in the register is cancelled,

(f) may specify matters in relation to which, pursuant to section 12 of this Act, information shall be furnished in a document of the kind referred to in that section issued by or on behalf of the manager under the scheme in relation to the scheme and may, if the Minister thinks it necessary to do so, specify the scope and nature of the information which shall be so furnished,

(g) may provide that the deed in which are expressed the trusts created in pursuance of the scheme shall make provision, to the satisfaction of the Minister, in relation to such of the requirements of the order as may be specified in the order,

(h) may specify requirements in relation to the charges imposed for the services of the manager under the scheme (including, if the Minister so thinks fit, a requirement that the charges shall not exceed the amount or amounts obtained when calculated in such manner or by reference to such matters as may be specified in the order),

(i) may specify (in addition to the matters specified in section 17 of this Act) matters in relation to which particulars shall be furnished to the Minister under the said section 17 and the form in which any particulars furnished under the section shall be so furnished.

(3) (a) The Minister may by order provide in relation to all registered unit trust schemes or a specified class or specified classes thereof (denoted by reference to such matters as the Minister considers appropriate) or in relation to all such schemes other than a specified class or specified classes thereof (denoted as aforesaid) that not less than a proportion specified in the order of any property for the time being subject to any trust created under a scheme to which the order applies shall be Irish securities or other property in the State.

(b) A proportion shall be calculated, for the purposes of this subsection and orders thereunder, by reference to the value, estimated by the Minister, of the property concerned.

(c) Securities held under any trust created under a registered unit trust scheme shall, to the extent specified in this paragraph, but no further, be deemed, for the purposes of this section, to be Irish securities:

(i) in case any of the securities are shares or debentures, or rights or interests (described whether as units or otherwise) in any shares or debentures, of a body corporate carrying on a business the whole of which is, in the opinion of the Minister, carried on in the State, the whole of those securities shall be deemed for the purposes of this section to be Irish securities,

(ii) in case any of the securities are shares or debentures, or rights or interests (described whether as units or otherwise) in any shares or debentures, of a body corporate carrying on a business a proportion only of which is, in the opinion of the Minister, carried on in the State, such proportion of those securities as, in the opinion of the Minister, is equal to the proportion of the said business which, in the opinion of the Minister, is carried on in the State shall be deemed, for the purposes of this section, to be Irish securities,

(iii) in case any of the securities are securities other than shares or debentures, or rights or interests (described whether as units or otherwise) in any shares or debentures, of a body corporate carrying on a business, such of the securities as are issued in the State shall be deemed for the purposes of this section to be Irish securities.

(d) Where a body corporate holds shares or debentures in another body corporate, the business of the first-mentioned body corporate shall be deemed, for the purposes of this subsection, to include such proportion of the business of the other body corporate as corresponds with the proportion of the shares or debentures of that other body corporate held by the first-mentioned body corporate.

(4) The Minister may by order revoke or amend an order under this section (including an order under this subsection).

(5) Where, in relation to a unit trust scheme, there is a contravention of or failure to comply with a provision of an order under this section (other than a provision relating to a matter specified in paragraph (f) or (i) of subsection (2) of this section), the manager under the scheme shall be guilty of an offence.

(6) In a prosecution for an offence consisting of a contravention, in relation to a unit trust scheme, of an order under subsection (3) of this section, it shall be a defence to prove that the property subject to the trusts of the scheme was in compliance with the provisions of the order within a period of time after the date of the offence that the court in which the prosecution is brought considers reasonable in all the circumstances.