Question

How unique is this organizational structure of a mutual fund compared to the other industries?

Answer 1

Mutual fund industry is highly regulated. It protects investors interest and maintain operational efficiency.
It has the highest disclosures.

A mutual fund industry runs on a four tier structure. The four parties involved are:
1. Sponsor
2. Board of Trustee
3. Asset management company
4. Custodian.

Mutual funds in most countries set up as Trust. Their market regulators like SEC or SEBI keeps an Active watch them. There is a high involvement of Central Bank.

Mutual funds is unique from other industries in terms of:
1. Structure.
2. Regulations.
3. Set up.
4. Disclosures requirements.
5. Polices and procedures.