Singapore legislation

Section 41M

of Trustees Act 1967

Section 41M

Review of agents, nominees and custodians, etc.

(1)

While the agent, nominee or custodian continues to act for the trust, it is the duty of the trustees —

(a)

to keep under review the arrangements under which the agent, nominee or custodian acts and the manner in which those arrangements are being put into effect;

(b)

if circumstances make it appropriate to do so, to consider whether there is a need to exercise any power of intervention that they have; and

(c)

if they consider that there is a need to do so, to exercise the power of intervention.

(2)

If the agent has been authorised to exercise asset management functions, the duty under subsection (1) includes, in particular —

(a)

a duty to consider whether there is any need to revise or replace the policy statement made for the purposes of section 41F;

(b)

if the trustees consider that there is a need to revise or replace the policy statement, a duty to do so; and

(c)

a duty to assess whether the policy statement (as it has effect for the time being) is being complied with.

(3)

Section 41F(3) and (4) applies to the revision or replacement of a policy statement under this section as it applies to the making of a policy statement under that section.

(4)

In this section, “power of intervention” includes —

(a)

a power to give directions to the agent, nominee or custodian; and

(b)

a power to revoke the authorisation or appointment of the agent, nominee or custodian.

Read in full context — Trustees Act 1967 →