Welcome to Equity & Bond Associates

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.