Trust deed - Agreement between trustee and borrower setting out terms of bond.
A trust deed is a legal document for setting up a trust. In order for a unit trust to be authorised by the FSA, the trustees and fund managers must submit a draft trust deed and scheme particulars. The fund may only be promoted to the public once authorisation has been obtained.The trust deed has certain mandatory content:It must contain the category and the name of the trust, which must reflect its objectives.It must state the law that applies to the trust (e.g. England and Wales).It must state the currency of the trust (e.g. sterling).It must contain a general statement that the scheme may invest in certain eligible markets.It must state that the trust deed is binding on the unitholders, trustees and managers and that the trust property is held by the trustees for the unitholders.It must state that unitholders have no further liabilities once they have paid the purchase price of the units.Other optional detail includes any restricted investment powers or geographic limitations, charges, unit pricing formulas, the remuneration of trustees, auditing arrangements, the creation of a unitholders" register etc.
Trust deed : agreement between trustee and borrower setting out terms of bond.
a trust deed is a legal document for setting up a trust. in order for a unit trust to be authorised by the fsa, the trustees and fund managers must submit a draft trust deed and scheme particulars. the fund may only be promoted to the public once authorisation has been obtained.the trust deed has certain mandatory content:it must contain the category and the name of the trust, which must reflect its objectives.it must state the law that applies to the trust (e.g. england and wales).it must state the currency of the trust (e.g. sterling).it must contain a general statement that the scheme may invest in certain eligible markets.it must state that the trust deed is binding on the unitholders, trustees and managers and that the trust property is held by the trustees for the unitholders.it must state that unitholders have no further liabilities once they have paid the purchase price of the units.other optional detail includes any restricted investment powers or geographic limitations, charges, unit pricing formulas, the remuneration of trustees, auditing arrangements, the creation of a unitholders" register etc.
Trust deed