Nature of Business Trusts
What is a Business Trust?
A business trust is a business enterprise structured as a trust.
A business trust (“BT”) is a business enterprise structured as a trust.
A BT that is constituted in Singapore and whose units or derivatives of units are offered to the public will be required to register with MAS under the Business Trust Act ("BTA").
Under the BTA, a registered BT must have a trustee-manager whose role is to manage the business of the trust and safeguard the interests of beneficiaries of the trust (also referred to as “unitholders”).
Offers of units or derivatives of units in a BT are regulated under Division 1 of Part XIII of the SFA.
Unless exempted, an offer of units or derivatives of units in a BT must comply with the following requirements:
A BT must be registered by MAS if it is constituted in Singapore
The offer of units or derivatives of units in a BT must be made in or accompanied by a MAS-registered prospectus and product highlights sheet
Business Trusts are regulated under the Business Trust Act and must comply with its stipulated provisions, such as the requirement for a MAS-registered prospectus to accompany offers of a Business Trust unit.