MAS Releases Consultation Paper on Regulation of Business Trusts
Singapore, 10 December 2003... The Monetary Authority of Singapore (MAS) today released a consultation paper on the regulation of business trusts (BTs).
Introducing BTs as an alternative business structure in Singapore will create a new asset class for investors and add depth and vibrancy to Singapore's capital markets.
BTs are businesses structured in the form of trusts instead of corporations. BTs actively undertake business operations, unlike collective investment schemes, which engage in passive investments. Investors may take a stake in the underlying business by purchasing units in a BT.
The consultation paper sets out legislative policy proposals on the following areas:
the governance of BTs;
public offers of units in BTs; and
treatment of Real Estate Investment Trusts ("REITs").
A draft Business Trusts Bill, incorporating the proposals on the governance of BTs, has been formulated and is attached to the consultation paper.
MAS seeks comments on both the policy issues highlighted in the consultation paper, and the draft Business Trusts Bill.