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Collective Trusts: The Truth About Regulations, Transparency and Eligibility

Of all the decisions that face retirement plan sponsors today, choosing the right investment vehicle is one of the most important — and one of the most misunderstood. I find there’s a lot of interest in collective investment trusts (CITs), also known as collective trust funds. CITs are pooled investment funds that are designed exclusively for qualified retirement plans. However, there’s also a lot of misinformation. In this blog series, I’m going to address some of the many misconceptions that I hear on a regular basis. ‘Unregistered’ Does Not Mean ‘Unregulated’ One of the things I hear often is that CITs are “not regulated.” This is simply false. While they are not registered under the Investment Company Act of 1940, they’re certainly regulated. Nationally chartered CITs are regulated by the Office of Comptroller of the Currency, while state-chartered CITs are regulated by state banking examiners. Learn more about regulations, transparency and eligibility of collective trust funds in this informative blog. Betsy Warrick is a Senior Vice President at Invesco Trust Company. Invesco Distributors, Inc. 06/15

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