Key Players In the Capital Markets : Trustees

In our previous article, we delved into the role of unit trust managers in Uganda’s Collective Investment Schemes (CIS). We highlighted their pivotal function of managing funds pooled in unit trusts and ensuring optimal returns for investors.

As we continue to learn about the key players in Uganda’s capital markets, we shift our focus to another important participant: Trustees. In this article, we will highlight their roles and overall contribution to Uganda’s Collective Investment Schemes.

What is a trustee?

A trustee is a person holding title to the property of a unit trust scheme in trust for the participants.

In relation to a unit trust scheme constituted under the law of a country or territory outside Uganda, a trustee means any person who, whether or not under a trust, is entrusted with the custody of the property in question.

What do trustees do?

To begin with, trustees ensure regulatory compliance. They oversee the operations of a unit trust scheme and ensure that they are in line with the scheme rules and the CIS Act & regulations.

Trustees also provide a dispute resolution mechanism. In case of disputes between unit trust managers and investors, trustees often play a role in resolving them.

Additionally, trustees hold the title of the assets of a scheme on behalf of the investors.

Why are trustees vital in the capital markets sector?

Overall, trustees are a very important part of Uganda’s capital markets sector because through their functions, they foster investor confidence. This in turn attracts more local and international investors thus promoting economic development and contributing overall to the growth and stability of Uganda’s capital markets.

As a result, individuals looking to invest in Uganda’s capital markets should only consider schemes that have trustees licensed by CMA Uganda, a list of whom can be found on our website.