A Corporate Trustee is an independent supervisor of...
managed investment schemes - such as KiwiSaver schemes, superannuation schemes and other managed investment products
securitisation of assets
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.