FSC wants inquiry extension on charitable trusts
The Financial Services Council (FSC) is seeking an extension of the Corporations and Market Advisory Committee (CAMAC) inquiry into charitable trusts and trustee companies in a move it says is aimed at ensuring the fees paid for management of such trusts and charities are regulated and transparent.
FSC senior policy manager Eve Brown said the move reflected the fact that the charity trust industry currently operated as a dual market - one covering licensed trustee companies regulated under Corporations law, and the other encompassing unlicensed professional trustees.
"Currently there are hundreds of millions of dollars of charitable funds which are managed by unlicensed professional trustees that are not regulated under the Corporations laws," she said.
"These trustees are not subject to fee caps and some are charging more than double the legislated capped fees which apply to licensed trustee companies."
Brown said the CAMAC inquiry needed to be extended to ensure that all professional trustees operated under the same rules regarding fees for charitable trusts.
"Regulation around fee levels and disclosure must be applied to all professional trustees to ensure transparency and consistency in the industry," she said.
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