The Association of Corporate Trustees has said that trustees play a relevant role in ensuring capital market investment protection in the country.
The association disclosed this during a presentation titled’ Protection in the capital markets – The role of corporate trustees’, that was delivered during its 2022 business luncheon in Lagos.
The luncheon themed, ‘An appraisal of the Nigerian trust industry vis-avis global trends in trusteeship’ was attended by stakeholders in the financial sector.
In the presentation, the association described a trust as a legal arrangement where a person or entity (the trustee) holds property on behalf of other persons or entities (the beneficiaries).
It stated that a corporate trustee is a corporation, usually a trust company, which is named as the trustee of an account such as a private trust or another fiduciary account.
While explaining the duties of corporate trustees in the presentation, it noted that, “They manage and administer the trust according to its terms and intent; communicating relevant information in a timely manner to co-trustees and beneficiaries; adopt sophisticated tax-planning strategies to minimise the tax liability to beneficiaries; and monitor investment performance.”
The association noted that a trustee files claims and collects proceeds on life insurance policies, hires professionals to carry out certain duties required by the trust, stays updated with all trust laws, rules and regulations.
According to the presentation, reasons for investors to consider using corporate trustees involve access to wealth protection, reliable professional service, potential of greater investment returns, advantage of years of experience, rich sources of advice and referrals.
The association noted in the presentation that corporate trustees are duty-bound to act in the best interests of their clients and beneficiaries, knowing the interest of the client is critical.
It assured of sustainable investing by ensuring client interests in sustainable investing factors has been gaining traction.