Record keeping requirements

It is usually a fundamental duty of the TSP to maintain accurate records and accounts of their trusteeship under their local trust legislation

Company legislation also requires a company to keep minutes of all proceedings at general meetings, meetings of any class of its members and meetings of its directors to be entered in books kept that purpose

An OSP records will enable them to demonstrate that they have fulfilled their fiduciary and statutory duties under such legislation

The record keeping requirements of a jurisdiction arise as a result of

The legislation that governs the provision of financial services including trust company business in a jurisdiction

Codes of practice issued by the regulator

Anti-money laundering legislation

Guidance issued by the regulator

Record keeping requirements that arise under the Proceeds of Crime Act 2002 (PoCA2002) legislation demonstrates that a TSP has sufficient policies and procedures to deter, prevent and detect money laundering

The record keeping requirements that arise as a result of the company or trust allow a TSP or director to demonstrate that they have fulfilled fiduciary duties owed to beneficiaries, shareholders and investors under those laws

OSPs are therefore required to hold a variety of information about their clients, settlor and beneficiaries, the entities to which they provide services including the decisions that are made and the activities that are carried out by or for and on behalf of those entities in order to demonstrate compliance with those laws, orders and codes of practice

May be kept in a variety of forms of records including

Client database

Minutes of trustee meetings and company meetings

Statutory registers

Accounting records and financial statements

Permanent files and safe custody files

Correspondence records

Compliance records

Compliance reports

The OSP must ensure that all files are complete and up to date

It is important that detailed file notes are kept of all telephone calls and meetings. Without such documentation, the OSP is dependent upon the knowledge of directors or staff. Overtime this knowledge can be unreliable or unavailable when the relevant staff member is absent or leaves the organisation. A fie note also provides evidence that the OSP asked 'the right questions' and recorded the information that they have been given by the client