A Corporate Trustee is an independent supervisor of...
managed funds - such as KiwiSaver schemes, superannuation schemes and unit trusts
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, and not a hands-on manager.
Issuers of securities to members of the public are bound by a trust deed and require a trustee by law. The trust deed sets out the 'rules' for the investment. The trustee's role includes to...
represent the collective interests of investors
ensure the company offering the investment complies with the trust deed
hold assets in trust separate from the scheme manager (in some cases).
Choosing a Trustee
Choosing the right trustee is a key decision and can make the difference between things running smoothly, and not.
If a Trustee is not required by law, there are many good reasons to appoint one anyway. A good Trustee can add value and may save you time and money.
When you choose a trustee you may wish to consider their...
Reputation - a trustee who has a good track record and credibility will provide your venture with an assurance of quality.
Experience - a trustee should have a wide range of experience as this will enable it to identify and help avoid issues, and to offer innovative solutions for your project.
Network - a trustee who can draw on wider resources is likely to be able to address all the needs of your project.
Approach - a trustee needs to be flexible, consultative and innovative and its approach should suit the way you do business.
Pragmatism - a trustee 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 trustee works can complement your business and enhance your offering - or create delays and frustrations.