Dear Valued Clients,
August 2013, the Royal Government of Cambodia ("RGC") issued
Sub-Decree № 476 on Financial Trusts (“Sub-Decree 476”). Sub-Decree 476 is not
a general law of trusts and applies only to trusts in relation to which the
trustor is a development partner that has entered into an agreement with the
RGC to entrust funds for the purposes of developing the banking and
476 aims to set out rules and procedures to establish, register, manage and
control such trusts.
Ministry of Economy and Finance ("MEF") is the competent regulator in
charge of supervising financial trusts. Sub-Decree 476 requires that all
financial trusts must be the subject of a written trust instrument and
registered with the MEF to be valid and effective. Moreover, all existing
financial trusts are required to be registered with the MEF within six months
from 26 August 2013.
Sub-Decree contains comprehensive regulations and rules to govern the rights,
duties and responsibilities of the trustor, trustee and the beneficiary. For
instance, a trustee is required to execute its duties with care and diligence,
to separate its own property from the trust fund it manages and controls, to
insure its professional liability etc.
have any questions or require further clarification about how this development
will impact your business, please do not hesitate to contact us.
Deputy Head of the Banking and Finance Practice Group