Trustee due diligence strengthened with mandatory disclosures, governance checks, exit rights for unitholders and stricter investment controls. Amendments clarify trustees as the board of trustees or trustee company and impose enhanced trustee obligations including quarterly disclosures of securities dealings, comprehensive general and specific due diligence duties (selection and oversight of asset management company directors, audit and compliance reporting, contract checks, immediate reporting of developments, meetings and minutes, and a code of ethics), and protections for trustees acting in good faith. Exceptions to unitholder consent for open-ended schemes are provided subject to notice, prescribed advertising and an exit option at prevailing NAV. Investment concentration limits, derivatives-for-hedging on recognized exchanges, stricter advertising and disclosure rules, and trustee meeting and quorum requirements are also introduced.
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Trustee due diligence strengthened with mandatory disclosures, governance checks, exit rights for unitholders and stricter investment controls.
Amendments clarify trustees as the board of trustees or trustee company and impose enhanced trustee obligations including quarterly disclosures of securities dealings, comprehensive general and specific due diligence duties (selection and oversight of asset management company directors, audit and compliance reporting, contract checks, immediate reporting of developments, meetings and minutes, and a code of ethics), and protections for trustees acting in good faith. Exceptions to unitholder consent for open-ended schemes are provided subject to notice, prescribed advertising and an exit option at prevailing NAV. Investment concentration limits, derivatives-for-hedging on recognized exchanges, stricter advertising and disclosure rules, and trustee meeting and quorum requirements are also introduced.
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