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"All
Weather Protection"
The financial companies that we recommend are
part of well established Financial Groups established
onshore in the UK and other developed western
countries, where the regulatory framework is
known for its excellence. Some of these companies
have been operational for over 100 and some
over 200 years and their assets under management
will vary from USD30 billion to over USD 200
billion.
Due to the fact that we specialise in Offshore
Financial Planning, we use the above companies
that have set up offshore sister (independent)
companies in well-regulated tax friendly financial
centres, offering confidentiality, tax-free
growth and security.
These well-regulated tax-friendly financial
centres have a stable and independent legal,
political and regulatory framework. Their regulations
are very similar to the onshore-developed countries.
The jurisdictions we use (as in the UK) require
the Investment Companies to have a Third Party
Independent Custodian Trustee, whose role is
to protect the investor.
This is done by a legal binding agreement, made
between the Company and the Trustee (Custodian).
The Custodians are usually large banks or insurance
companies, and must be independent from the
Investment Company.
The trustee legally holds the assets on behalf
of the investor. The Manager (Investment Company)
is responsible for the day-to-day management,
including marketing, investment and administration.
Both the trustee and the manager must be incorporated
under the law of their Financial Jurisdiction.
They also have to be authorised to conduct business
and therefore be subject to the countries regulators.
The following are some of the Trustee’s
(Custodian’s) role:
- Check the managers actions are in line with
the regulations
- Ensuring the investors assets are held by
a competent custodian. Usually the trustees
are the custodians
- The securities are registered in the name
of the Trustee and the trustee holds all income
from the assets.
- The trustee has the ultimate power to replace
the Investment Manager (Company) if it goes
into liquidation
- The trustees would have to replace the manager
if a majority of investors vote for the removal
The biggest Trustee/Custodian manages in excess
of USD8,400 billion. The top five global Custodians
manage together in excess of USD31,700 billion.
Conclusion; using Financial Companies that
are domiciled in well-regulated offshore centres
will give you the same peace of mind as if investing
in onshore-developed countries.
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