Cambodia Investment Review
The Trust Regulator (TR) of Cambodia and CamEd Business School announced a landmark Memorandum of Understanding (MoU) signing aimed at bolstering awareness, technical know-how, and regulation adherence in the nation’s growing trust sector. The signing took place on Wednesday, June 21, 2023, at the Non-Bank Financial Services Authority (FSA) Building.
The auspicious event was granted permission by H.E. Akka Pundit Sopheacha Aun Pornmoniroth, the Deputy Prime Minister, Minister of Economy and Finance, and Chairman of the Board of the FSA. The ceremony was presided over by H.E. SOK Dara, Director-General of the TR, and Dr. PRUM Virak, Chairman of the Board of Trustees of CamEd Business School.
Stimulate an understanding of the trust sector
The primary goal of the MoU is to stimulate an understanding of the trust sector and its accompanying regulations, simultaneously fostering the growth of the trust sector in Cambodia through mutual support and the exchange of technical assistance. The agreement between the two entities is poised to streamline this process by encouraging active collaboration and support.
Following the signing ceremony, presentations were delivered by a TR senior technical official and a CamEd professor. The attendees included representatives from line-regulators and units under the FSA, TR management and technical officials, CamEd management and students, trust companies, trustees providing escrow services, appraisal companies in the trust sector, and TR’s partners.
“Few people understand what Trust services are. There is going to be a need for more dissemination. As the most prominent business school in Cambodia, CamEd creates opportunities for our students and faculty to hone new skills in this new field. The future prospect is exciting!” Dr. Virak Prum, Chairman of CamEd Business School, stated with a hopeful tone.
Enlightening students and the general public
The signing comes on the heels of the successful Information Day on Cambodia’s Trust Law event. This event was jointly backed by the CamEd Business School and the American Chamber of Commerce in Cambodia. Its aim was to enlighten students and the general public about the country’s new trust legislation. The event was conceived and executed by the CamEd Business Law Club and saw generous sponsorship from Phillip Trustee, Stronghold Trustee, HBS Law, and ACLEDA Bank.
Cambodia’s Trust Law, introduced in 2019 by the Royal Cambodian Government, offers robust guidelines and procedures for four types of trusts: Commercial Trust, Public Trust, Social Trust, and Personal Trust. Since the law’s introduction, 512 trusts have been registered, reaching an impressive value of approximately $939 million as of March 2023.
Despite this progress, the need for improved awareness and comprehension of trusts among both domestic and international investors remains. To respond to this challenge, the Trust Regulator of Cambodia has green-lighted inaugural licenses for six companies to operate trust businesses in the country. The public announcement took place during the “Trust Forum 2023” event at the Phnom Penh Hotel, an event dedicated to sharing updates about the development of the Cambodian trust sector.
With the successful Information Day and ongoing endeavors, like the recent MoU, it’s expected that Cambodia’s Trust Law will continue to evolve, fostering economic growth, and attracting more foreign investment.
