Sub-Decree No. 476, issued by the Royal Government of Cambodia ("RGC"), sets out rules and procedures to establish, register, and manage financial trusts in which the trustor is a development partner that has entered into an agreement with the RGC to invest funds in financial trusts for the purposes of developing the banking and microfinance sectors ("Financial Trusts"). Under this law, the Ministry of Economy and Finance ("MEF") is the authority in charge of supervising these Financial Trusts.
The Sub-Decree determines the rights, obligations and liabilities of the trustor, trustee and beneficiary. It requires the Financial Trust to be established by a written form, which must be filed and registered at the MEF for validation and enforcement. Moreover, any beneficiary of an existing Financial Trust has to register the trust for validation and enforcement within 6 months after the effective date of this Sub-Decree.