A unit trust scheme can be illustrated as a tripartite relationship between the Fund Manager, the Trustee and Unit Holders governed by a legally binding Trust Deed registered with the Securities Commission.
The operations of the trustee and fund manager are dictated by the trust deed. The Trust Deed also creates a business relationship between the trustee and fund manager, and the investors who are also the Unit Holders.
The Securities Commission regulates the industry as well as the operations and administration of unit trust schemes through the Securities Act 1997.
The tripartite relationship is pictorially illustrated below: