The Capital Market Advisory Council (CMAC) has shown much upbeat about the upcoming trust law that is being drafted by the Ministry of Trade and Industry as it will stimulate the growth of collective investment schemes.
During validation workshop yesterday, CMAC officials said that the trust law would help establish a legal basis for the creation and regulation of trustees.
“The purpose of this law is to regulate trusts and trustee’s activities in Rwanda and control and supervise them with a view to maintaining proper standards of conduct and acceptance practices of trust ship” said Robert Mathu Executive Director of CMAC.
He added that the capital markets continues to grow and putting up structures that will help the economy grow through the capital markets.
In order to have all the structures in place, there is a need to have a legal framework therefore it important to have the trust law.
A trust mechanism will allow the beneficiaries to participate in the administration of the trust, allows flexibility of the terms and over comes the problem of privity which can arise when dependent seek to enforce the trust promise among others.