The legislation governing the establishment and operation of unit trusts in Malaysia are the Capital Markets and Services Act 2007 and all regulations made thereunder. The Securities Commission Malaysia (SC) also issues Guidelines on Unit Trust Funds which have to be observed at all times. A unit trust fund is also governed by the deed of the fund. The deed incorporates the covenants required by the Act and the Guidelines on Unit Trust Funds.
All unit trust managers are members of the Federation of Investment Managers Malaysia (FIMM). The FIMM works closely with SC to promote the growth of the industry.
The appointment of the trustee, directors and Chief Executive Officer of the manager, Investment Committee members and Shariah committee/Shariah adviser must receive the approval of the SC.