Trustee status for building societies
The Minister said authorised investments are listed under the 1958 Act and additions are assessed for security and an appropriate return. Building societies may receive trustee status after legislation passes and they provide evidence that they meet the stated criteria; he expects reputable societies to qualify without undue delay.
andMr. J. O'Leary asked the Minister for Finance the criteria used by him in deciding the types of investments that are trustee securities under the Trustee (Authorised Investments) Act, 1958.
Comment on this
The investments in which trustees may invest trust funds, unless expressly forbidden by the instrument, if any, creating the trust, are listed in Section 1 of the Trustee (Authorised Investments) Act, 1958.
Under the Act the Minister for Finance may, by order, vary the list of authorised investments by addition or deletion. Every such order must be approved in draft by a resolution of each House of the Oireachtas. In assessing the suitability of an investment for addition to the list regard is had to the security of the investment and its ability to provide an appropriate return to the beneficiary.
The Act requires me to consult with the following persons in regard to the terms of any order to vary the list of authorised instruments:—a judge of the High Court nominated by the Chief Justice, the Governor of the Central Bank, the Public Trustee, the Chairman of the Irish Banks' Standing Committee, the President of the Incorporated Law Society of Ireland and the President of the Stock Exchange.
Comment on this
As soon as the legislation is through, the question of granting trustee status to building societies will be activated. We have already indicated to building societies the criteria they will have to fulfil to qualify for trustee status. I expect that most of the building societies will be in a position to qualify for such status. When they qualify, such status will be conferred on them.
Comment on this
Has the Minister indicated to individual building societies covered by the new Bill which of them will get trustee status?
Comment on this
No, because it would be a matter, once the legislation is through, for the building societies to furnish the evidence on which an assessment can be made whether or not they fulfil the criteria which, I understand, are generally acceptable. There should not therefore be any undue delay. Any reputable societies should be able very quickly to obtain the necessary recognition.