The lower minimum requirement allows trust entities to tap retail clients seeking returns higher than those of traditional deposit products, thereby increasing the participation of the public in the securities markets. The amendments to the regulations also allow commingled IMAs to invest in a wider range of financial assets. The next phase of the initiative will cover seven areas.
Three draft circulars have already been exposed to the trust industry for comments. The first covers the licensing framework for UITFs. The amendments aim to streamline the approval process for UITFs and make it more risk-based. The second provides a common framework for the conduct of accounts review by trust entities.