What is a Corporate Trustee?

A Corporate Trustee is an independent supervisor of...

  • managed investment schemes - such as KiwiSaver schemes, superannuation schemes and other managed investment products
  • debt issues
  • securitisation of assets
  • retirement villages
  • custodial services.

What does a Corporate Trustee do?

A Corporate Trustee's role is to act in the interests of investors by being an independent supervisor of the security and a custodian of assets. The prime responsibility is that of a prudential supervisor. 

Issuers of securities to members of the public are bound by a trust deed and require a supervisor by law. The trust deed sets out the 'rules' for the investment. The supervisor's role includes to...

  • represent the collective interests of investors
  • ensure the company offering the investment complies with the trust deed and legislative requirements
  • hold assets in trust separate from the scheme manager.

Choosing a Supervisor or Trustee

Choosing the right supervisor is a key decision and can make the difference between things running smoothly, and not.

If a supervisor is not required by law, there are many good reasons to appoint one as a trustee anyway. A good trustee can add value and may save you time and money.

When you choose a supervisor you may wish to consider their...

  • Reputation - a supervisor who has a good track record, stable ownership and credibility will provide your venture with an assurance of quality.
  • Experience - a supervisor should have a wide range of experience as this will enable it to proactively identify and assist you with issues, and to offer innovative solutions for your project.
  • Network - a supervisor who can draw on wider resources is likely to be able to address all the needs of your project.
  • Approach - a supervisor needs to be flexible, consultative and innovative and its approach should suit the way you do business.
  • Pragmatism - a supervisor should have the experience and pragmatism to balance legal duties with commercial realism.

What about costs?

When you are comparing proposals consider the value provided. The way a supervisor works can complement your business and enhance your offering.