The Court Funds (Amendment) Rules 1991

Made: 21st May 1991

Laid before Parliament: 23rd May 1991

Coming into force: 13th June 1991

The Lord Chancellor, in exercise of the powers conferred on him bysection 38(7) of the Administration of Justice Act 1982[^f00001]and with the concurrence of the Treasury, hereby makesthe following Rules.

Citation and Commencement

1

These Rules may be cited as the Court Funds (Amendment) Rules 1991and shall come into force on 13th June 1991.

Amendments

2

The Court Fund Rules 1987[^f00002]shall be amended as follows—

• (a) in rule 2(2)—

• (i) delete the definitions of “Capital Fund” and “Central Investment Branch”; and

• (ii) insert, after the definition of“Fund”, the following new definition—

• “Gross Income Fund” means the Common Investment Fund of that name;

• (b) after rule 34(1)(iii) insert:—

(iv) it may be invested in investment trust ordinary shares.

• (c) in rule 34(2)—

• (i) delete the words“by the Accountant General”, and

• (ii) for the words“Central Investment Branch” substitute the words“Public Trustee”.

• (d) in rule 37(2), for the words“Capital Fund Units”, wherever they appear, substitute the words“Common Investment Fund Units”.

• (e) after rule 37(2) insert the following new paragraph:—

(3) Funds shall not be directed to be invested in the GrossIncome Fund unless dividends payable on such funds may be paid withoutdeduction of income tax in accordance with arrangements made underparagraph 6 of the Common Investment Scheme 1991[^f00003]

Signed

Mackay of Clashfern, C — Dated 17th May 1991

We concur

Irvine Patnick — Gregory Knight — Two of the Lords Commissioners of Her Majesty’s Treasury — Dated 21st May 1991

Explanatory note

(This note is not part of the Order)

These Rules make amendments to the Court Funds Rules 1987:—

• (a) to delete the definitions of“Capital Fund” and“Central Investment Branch” and insert a definition of“Gross Income Fund”. These changes are consequential upon the coming into force of theCommon Investment Scheme 1991;

• (b) to refer to the Common Investment Scheme 1991 instead of the CommonInvestment Funds Scheme 1965 (S.I. 1965/1467) (which the 1991 schemereplaces);

• (c) to allow money held in Court to be invested in investment trustordinary shares;

• (d) to clarify who may give investment instructions for money held incourt;

• (e) to require that money shall normally only be invested in any CommonInvestment Fund if it is likely to remain invested for at least fiveyears. Hitherto, this restriction applied only to Capital Fund Units;and

• (f) to limit individual investment in the Gross Income Fund to caseswhere the investment manager is able to pay dividends without deductionof income tax.

Footnotes

[^f00001]: 1982 c 53.

[^f00002]: S.I. 1987/821; the only relevant amending instrument isS.I. 1988/817.

[^f00003]: S.I. 1991/1209.