This requirement will take effect once the Guidelines for Registration of Institutional Agents for the Marketing and Distribution of Unit Trusts (Guidelines) come into force on 1 February 2000. The Guidelines will govern the third-party distribution of unit trusts by institutional unit trust agents (IUTAs).

Investors are advised to only deal with registered IUTAs and their representatives. In addition to this, they are also reminded to read and fully understand the contents of the prospectus of the unit trust fund before investing.

The FMUTM, as the approved body for the registration of all persons involved in the marketing and distribution of unit trust products, had drawn up the Guidelines following wide-ranging consultations with the SC and other relevant authorities. The Federation will be responsible for the issuance and administration of the Guidelines. The SC would like to commend the FMUTM for its efforts in the formulation of the Guidelines.

The issuance of the Guidelines represents the second and final phase in the SC's efforts to formulate a regulatory framework for the marketing and distribution of unit trust products. The first phase of these efforts culminated in 1997 with the introduction of the Guidelines on Marketing and Distribution of Unit Trusts, which covered the marketing of unit trust products by agents and marketing personnel of the management company and its related parties.