Investment Trust Contract for Singapore

Investment Trust Contract Template for Singapore

A Singapore Investment Trust Contract is a legal document establishing and governing an investment trust under Singapore law. It sets out the terms for managing investment assets, defining the roles and responsibilities of trustees, and protecting beneficiaries' interests. The document complies with Singapore's Trustees Act and relevant MAS regulations, incorporating specific investment powers, distribution rules, and governance structures required under Singapore law.

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What is a Investment Trust Contract?

An Investment Trust Contract is essential for establishing and managing investment trusts in Singapore. This document is typically used when individuals or entities wish to create a structured investment vehicle for asset management and wealth preservation. It outlines the trust's investment strategy, beneficiary rights, trustee powers, and compliance requirements under Singapore's legal framework. The contract must adhere to the Trustees Act, Securities and Futures Act, and MAS guidelines, making it particularly relevant for high-net-worth individuals, family offices, and institutional investors seeking to establish regulated investment structures in Singapore.

What sections should be included in a Investment Trust Contract?

1. Parties: Identification of trustee(s), settlor, and beneficiary classes

2. Background: Context and purpose of the trust establishment

3. Definitions: Key terms used throughout the trust deed

4. Trust Declaration: Formal declaration of trust and initial settlement

5. Trust Powers: Powers granted to trustees in managing trust assets

6. Investment Powers: Specific powers related to investment decisions and limitations

7. Distribution Rules: Rules governing distribution of income and capital

8. Trustee Provisions: Appointment, removal, and succession of trustees

What sections are optional to include in a Investment Trust Contract?

1. Protector Provisions: Powers and duties of trust protector, used when additional oversight is desired

2. Investment Committee: Structure and powers of investment committee, used for larger trusts with complex investment strategies

3. Anti-Duress Clause: Provisions protecting against forced distributions, used when asset protection is a key concern

What schedules should be included in a Investment Trust Contract?

1. Schedule of Initial Assets: Detailed list of assets initially settled into the trust

2. Investment Guidelines: Specific investment parameters and restrictions

3. Beneficiary Schedule: Detailed information about beneficiaries and their respective interests

4. Fee Schedule: Trustee remuneration and cost structure

5. Distribution Policy: Detailed guidelines for making distributions

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Singapore

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Industries

Trustees Act (Chapter 337): Primary legislation governing trustee duties, powers, and responsibilities. Sets out fundamental requirements for trust creation and administration in Singapore.

Securities and Futures Act (Chapter 289): Regulates investment products and financial services. Essential for investment trusts dealing with securities or other regulated investment products.

Business Trusts Act (Chapter 31A): Provides regulatory framework specifically for business trusts, including governance and operational requirements for business trust structures.

MAS Guidelines: Regulatory guidelines issued by Monetary Authority of Singapore covering licensing, conduct of trust companies, investment guidelines, restrictions, and risk management requirements.

Income Tax Act (Chapter 134): Outlines tax treatment of trust income and tax obligations for trustees and beneficiaries in Singapore.

AML/CTF Requirements: Anti-Money Laundering and Counter-Terrorism Financing requirements including MAS Notice TCA-N03 and Know Your Client (KYC) procedures.

Trust Companies Act (Chapter 336): Specifies licensing and operational requirements for trust companies operating in Singapore.

Personal Data Protection Act 2012: Governs data protection obligations regarding handling and protection of beneficiary information and other personal data.

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