The SC wishes to state that any initiative for the merger of unit trust management companies should come from the industry itself based on sound commercial considerations and not by a process to be managed or supervised by the SC. While the SC will not initiate any merger process, the SC's Guidelines on Unit Trust Funds require that any reconstruction or amalgamation involving a management company or any change in the shareholding of a management company must be approved by the SC.

The SC wishes to highlight that there are a number of important factors to be considered in any merger process. Commercial considerations aside, there are legal and accounting issues to look into, including the possible need for unitholders' approval should there be a change in the management company of the fund and/or in the nature and characteristic of the fund. These issues must be adequately addressed to ensure that the interests of the investors and industry are maintained and protected.