Responsible Entity Trustee – Leodaritsis Lynch

Responsible Entity & Trustee

Serving as a trustee signifies a strong vote of confidence in one’s decision making skill set and integrity. However, serving as trustee can be a time consuming task and one that carries significant responsibilities. If you need to select a trustee, it is important to understand what is involved and how Leodaritsis & Lynch can help you.

Roles & Responsibilities of a Corporate Trustee

Prudently oversee trust assets in alignment with Investment objectives.

Discharge duties according to fiduciary standards. Exercising care, skill, and diligence.

Administer the trust according to the terms of the trust document.

Understand the intentions of the trust creator to the extent possible.

Use and distribute trust assets for the purposes described in the trust.

Act in the best interests of the trust beneficiaries.

Regularly communicate with the beneficiaries and provide pertinent information.

Manage third-party professionals.

In fulfilling the responsibilities, a trustee may appoint third parties to take on certain responsibilities such as: Responsible Managers for specific types of assets.

Acting as a Responsible Entity for Retail Managed Investment Schemes

When acting as a Responsible Entity, our services can include:

Scheme registration.
Issuing the product disclosure statement.
Monitoring of compliance with the Corporations Act, PDS, TMD, constitution and compliance plan.
Complying with annual financial reporting and auditing obligations.
Managing reporting obligations to investors.
Dealing with investor enquiries.

Investor complaints monitoring and resolution.
Appointing and monitoring external providers.
Entering into an investment management agreement to cover the relationship between the Responsible Entity and operational manager including reporting, funding and budgetary arrangements, insurance, audits, additional funding, and other relevant matters.

What are the responsibilities of a Trustee?

A trustee takes legal ownership of the assets held by a trust and assumes fiduciary responsibility for overseeing those assets and carrying out the purposes of the trust. A trustee has a fiduciary duty to act in the best interests of both current and future beneficiaries of the trust.

What Makes a Good Trustee?

Characteristics

Honesty and trustworthiness.
Knowledge of prudent investor concepts and guidelines: insurance, tax, and trust law.
Organisational, managerial, and problem-solving skills.
Good human relations and communication skills.
Longevity.

Guiding principles

Maintain confidentiality.
Remain loyal yet impartial.
Avoid conflicts of interest or any act of self-dealing.
Maintain solid documentation and policies.
Act prudently in fulfilling fiduciary responsibilities.

Acting as a Trustee for Wholesale Managed Investment Schemes

For Wholesale Schemes, our Trustee services include:

Establishing the Trust Deed and Investment Management Agreement.
Appoints/confirms the Investment Manager.
Issuing the Information Memorandum.
Managing reporting to investors, including ‘white labelling’ on our website.
Dealing with investor enquiries.
Issuing units to investors.

Acting in a fiduciary capacity on behalf of all parties.
Complying with all regulatory requirements.
Holding scheme property as custodian on trust for investors.
Registry.
Utilising our managed investment scheme lawyers to advise on scheme documentation.

LLA Legal Pty Ltd

LLA Legal is an incorporated legal practice that provides independent legal advice focusing on managed investment schemes, trusts, banking, and finance. The firm’s principal, Dermott Lynch has over 25 years of experience assisting major banks and fund managers in all aspects of financial services law, having worked with national law firms and boutique firms.

The firm is supported by an extensive group of external legal advisors.

As a core member of the group, LLA Legal assists clients with:

Loan document preparation, execution and settlement.

As an incorporated legal practice, LLA Legal provides transactional advice and services for secured commercial and residential loans throughout Australia. In addition, LLA Legal provides transactional advice in banking and loan agreements and has a suite of enforceable documents that enables it to provide efficient and economic loan document preparation, execution, and settlements.

This includes preparing all loan documents and handling settlements and discharges of securities. Additionally, LLA Legal can enforce any default loans.

LLA Legal utilises a variety of documents that have been tried and tested and are able to provide this service for our clients. The firm is supported by an extensive group of external legal advisors.

A boutique independent Australian funds management business specialising in responsible entity, trustee, corporate trust, legal services and management.

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