No minimum trustee fee from 1 July 2002

The Securities Commission (SC) today announced that, from 1 July 2002 onwards, trustees and management companies of unit trust funds would be able to negotiate on trustee fees without any minimum restriction.

This new policy, which is in line with the SC’s efforts to further liberalise and enhance competitiveness the fee structure for unit trust funds, will be introduced via Practice Note 17 of the Guidelines on Unit Trust Funds. Practice Note 17 is available here.

With the removal of the minimum restriction on trustee fees, the negotiation of the said fees between trustees and management companies shall be based on, amongst others, the responsibilities of the trustee as trustee to a unit trust fund and the level of services the trustee provides.

27 June 2002