Regulatory Alerts2009-05-22
Added
CMD 02/2009 - Trustee's Responsibility for Safe Custody of Assets of a Collective Investment Scheme
The Monetary Authority of Singapore mandates that trustees of collective investment schemes remain liable for the safe custody of scheme assets even when this function is delegated to third-party custodians. Trustees must exercise due care and diligence in appointing custodians and actively monitoring their arrangements, as trust deed provisions cannot exempt them from liability for breach of trust. This circular emphasizes that trustees retain oversight responsibilities and cannot absolve themselves of accountability for custodian misconduct resulting from a failure to exercise reasonable care.
Topics
Share