Investing
- Investor Protection
"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.
|
