Code on Collective Investment Schemes

The Monetary Authority of Singapore (MAS) issued a revised version of the Code on Collective Investment Schemes (CIS). The Code stipulates best practices as regards the management, operation, and marketing of collective investment schemes that shall be observed by managers, trustees, directors, and custodians of Variable Capital Companies (VCCs) alike. It thereby covers the following key issues:
(1) the role, responsibilities, and obligations of a trustee (in case of a unit trust);
(2) the role, responsibilities, and obligations of a custodian or the directors (in case of a VCC or its sub-fund);
(3) the functions and responsibilities of a manager of a VCC (or sub-fund) in connection with securities dealing, reporting, redemption of shares (units), calculation and charge of performance fees and others;
(4) the management of the scheme itself (i.e. prescribed name, (prohibited) activities, or advertisement;
(5) regular reports to be filed (annual and semi-annual);
(6) the valuation of unit shares including frequency, timing, etc.; and
(7) actions necessary in case of breaching the code.
This latest revised version includes various amendments throughout Chapter 10 simply to refer to the „ASEAN Sustainable and Responsible Fund Standards where applicable“.