7. How safe is the trust asset?

7 months ago Updated: 08 December 2022 Credit source:

Trust has to be registered with the Trust Regulator. The Trust Regulator is the competent authority to regulate and supervise transactions in trust sector. By law, trust assets must be kept separate from trustee’s own assets or all other assets and in trust for the purpose for which it was paid. They cannot be loaned out, or used to pay off to its creditors. For a better safeguard, trustee is required to have proper records of assets, debt, income, expenses, or any benefits generated from trust asset in a prescribed format regulated by the Trust Regulator.