In authorised unit trusts, who typically acts as trustees?

• A. Independent private individuals
• B. The regulator
• C. The fund sponsor
• D. Trustees usually companies subject to special regulation, part of global banking groups

Answer: (D)

In authorised unit trusts, assets are held on trust by a trustee for the benefit of the unit holders. The trustee’s role is to safeguard the assets, ensure the fund is run in accordance with the trust deed and applicable laws, and provide independent oversight of the manager’s actions. This fiduciary responsibility requires a level of professional administration, custody, and regulatory compliance that is best provided by corporate trustee companies. These entities are typically regulated specialized trustees, often part of large banking or financial groups, which gives them the necessary infrastructure and oversight to handle substantial investor funds. The regulator does not act as trustee, and the fund sponsor runs the management side rather than holding the assets; while independent individuals can be trustees in some contexts, authorised unit trusts commonly use corporate trustees within global banking groups.