Role Of Trust & Company Administrator

Question 1

Outline their role as administrator & their competence

Answer 1

Will vary between jurisdictions & different organisations as role is depending on business type, size & structure

I.e larger companies have more centralised procedures undertaken by specialist teams of administrators

Understand fiduciary duty / familiar with legislation governing entities in their jurisdiction & others where incorporated

Competence
-demand for administrators to be members of professional body (ICSA) driven by codes of practice issued by offshore regulators

Impose requirement on trust company to have minimum levels of qualified staff

Question 2

Outline their regard to commercial rationale for structures

Answer 2

Understand what client is trying to achieve by having offshore structure

Professional intermediaries involved in structure establishment & provide documented legal/ tax advice

Administrators should ensure;

• advice covers all circumstances
• remains effective with legislation
• entity is administered in accordance with advice ( adequate systems in place to prevent structure failing in aims)

Question 3

Outline advice of administrators

Answer 3

Not general rule to provide tax/ legal advice to clients

However consider tax/ legal consequences of any action / take note of developments in legislation to protect integrity of structure

Administrator should ensure advice is sought when necessary, appropriate when obtained, entity administered in accordance with advice

Administrators role to liaise with professional intermediaries / build good relationships/ ensure clients affairs managed to high standard & because good source of new business opportunities (refer clients to chose SP)

Question 4

Outline administrators need to understand constitutional docs

Answer 4

Understand need to refer to these docs when acting on behalf of the entity

Ensure actions in accordance with documentation (TI or M&A)

Breaches of duty from failure to take into account these docs can result in liable actions

Question 5

Outline importance to follow polices & procedures & record keeping

Answer 5

These exist to protect organisation / employees against risks / important to follow

Require to maintain procedures by law (AML/ CFT) & ensure company doesn’t act outside scope of its license to conduct FSB

Administrators understand importance enhance knowledge & add value to organisation as give feedback to management of effectiveness & efficiency of polices

Record keeping
-maintain high standards to demonstrate compliance with law, orders & codes

• client records useful / up to date to ensure history of entity preserved & better assist clients needs

Question 6

Outline administrators role in CDD & risk awareness

Answer 6

CDD
-require CDD from clients & explain requirements of organisation risk based approach to them

-info considered & updated throughout business relationship so administrators understand transaction / help identify opportunities & risks

Risk awareness
-manage clients expectations & understand can’t always fulfil clients wishes (unacceptable risk exposure)

-seek to protect reputation of organisation, industry & jurisdiction / bear in mind personal obligations under AML legislation