Sept 3 (Reuters) - The World Gold Council in

collaboration with law firm Linklaters and consultancy firm

Hilltop Walk Consulting has announced a new framework to

modernize the global gold market.

The proposal introduces a new structure called Pooled Gold

Interests which allows investors to own a share of physical gold

stored in vaults, including in small, fractional amounts.

The system is designed to make gold easier to trade and use,

including as collateral in financial markets and allow easy and

secure transfer of gold interests between parties.

Currently, gold is traded either as allocated gold, gold

which involves direct ownership of specific physical bars but is

operationally complex, or unallocated gold, which has higher

liquidity and lower costs but may expose investors to the credit

risk of the institution where the account is held.

The move follows industry consultations and builds on recent

reviews by the Financial Markets Standards Board.