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Regulation of trust and trust company services providers (The role of…
Regulation of trust and trust company services providers
The regulatory requirements for each offshore service provider will vary from provider. Factors such as the jurisdiction from which services are provided, the organisation's financial service business licence and the type of organisation will be relevant in determining the type of regulation that affects the provider.
In the majority of offshore jurisdictions, licensed trust service providers and company service providers must ensure that they have received the necessary licence and authority from their regulator so that they can provide various services. Routine on sit review visits are undertaken by the regulators staff (including anti money laundering compliance testing) to ensure that these service providers are fulfilling their regulated and internal policies and function
The role of company officers providers by CSPs includes
Provision of directors
In some jurisdictions, it is permissible for a corporate body to act as a director
On other occasions the CSP may need to provide individual members of its staff to act as directors of managed companies
Local directors may be used to comply with the legal requirements of a particular jurisdiction (i.e that directors must be resident in the jurisdiction and to provide an audit trail as to where decisions are made and so determine the residential status of the company for tax and other purposes')
Provision of a company secretary
Many offshore jurisdictions require the appointment of a locally based company secretary
The CSP will usually appoint a suitably qualified person from its staff to act in this capacity or where local regulations permit, it may use a corporate body established to provide this service
Even when a corporate body is used, it will be individual members of staff who will undertake the duties of the company secretary and ensure that any local filing requirements are fulfilled
Provide registered agent or resident representative services
In addition to other officers appointed to act on behalf of the company, there may also be a requirement for the appointment of a local representative
The BVI is an example of a jurisdiction that requires a local registered representative to be appointed for all companies incorporated in the jurisdiction
Provide nominee shareholders
Another service frequently provided to assist with the day to day administration of a corporate entity is who the CSP may provide a corporate nominee to act as nominee shareholder to represent the entitlements of any beneficial owner
Acting as a company formation agent, or agent for the establishment of a partnership
Providing a registered office
Providing an accommodation, correspondence or administrative address
Maintaining the books and records of a company or partnership
Filing statuary forms, resolutions, returns and notices
Acting as or fulfilling the function of, or arranging for another person to act as or fulfil the function of, a person authorised to accept service of process on behalf of a company or partnership or to accept any notices required to be served on it
Acting as or fulfilling the function of, or arranging for another person to act as or fulfil the function of, a director, officer, secretary, alternate assistant or deputy secretary or an officer of a partnership