Interest scheme involves the pooling of a funds from the public in exchange for an interest in a particular scheme. Interest Schemes are regulated under the Interest Scheme Act 2016 by the Companies Commission of Malaysia (SSM). Small medium investment schemes are also gazetted under the Interest Scheme Act 2016. Some examples of Interest Schemes are Investment Schemes, Golf Clubs and Social Clubs. The Trustee of an Interest Scheme is to protect the rights of interest holders as per the trust deed and Interest Scheme Act 2016.
Exercise all due diligence and vigilance in carrying out the functions and duties as a trustee in monitoring the rights and interests of the interest holders according to the trust deed or contractual agreements.
Ensure that the covenants in the trust deed, supplemental trust deed, contractual agreement or supplemental contractual agreement and contents in the prospectus or product disclosure statement are delivered.
Carry out the duties of a trustee within a reasonable time frame.
The trustee is to notify the Registrar if the trustee know or have reasonable cause to believe there is an occurrence of any matter which has or likely to have a material adverse effect on the scheme.
Trustee is to report to the Registrar in the event when; (i) Any non-compliance of the Act, trust deed, contractual agreement, prospectus or product disclosure statement. (ii) Scheme is unable to meet its obligation as they fall due. (iii) Management company is carrying on business in a manner that is or likely to be prejudicial to the interest holders.