Compliance for Trustees

The challenges facing private wealth advisers, their clients, directors, trustees and other fiduciaries continue to rise globally. The volume and complexity of legislation grows year by year since the global financial crises in 2007 - 2008 and the increase in terrorist attacks by extremist organisations. Combined with more rigorous supervision and enforcement by regulators, the international crack-down against tax evasion by tax authorities and other money laundering and financial crimes, compliance is now at the epicentre of most business organisations.

In the midst of demand for greater transparency in markets, products and services; demand to provide greater consumer and investor protection; pressure being placed on boards of directors by regulators to take ownership of compliance and the need for an effective compliance function, it is essential to identify, assess and mitigate risks to protect the business and its officers against regulatory sanctions and personal liability. Protecting the reputation of the organisation and its brand in the market is of great importance.

Trustees who operate by way of business are no less in the compliance spotlight than other businesses, and perhaps face greater challenges because of the complexities of their dual role of protecting trust assets and at the same time producing adequate financial returns, balancing the interests and priorities of a particular trust in the context of each beneficiary’s interest.

The need for the implementation of an effective compliance function has been highlighted by the following:

• The significant rise in the complexity of regulations in many financial centres that have adopted a licensing regime to regulate and supervise trustees (which impacts the administration and management of trustee services).
• The application of anti-money laundering and counter-terrorist financing criminal offences in the funding, dealing and distribution of trust funds representing the proceeds from serious criminal conduct.
• The international transparency and due diligence requirements to identify the beneficial owner who has provided such funds.
• The reporting and disclosure requirements for trustees to provide information on tax matters to regulators and tax authorities.

Trustees who implement an effective compliance framework will be in a far better position to manage and mitigate their compliance risks, enabling them to be more competitive and less prone to the impact of compliance risk materialising.

This specialist topic is explored further in the new Level 7 Professional Postgraduate Diploma (PPgDip) in Private Wealth Advising programme, divided into three core units covering:

• Identifying and Assessing Compliance Risks
• A Compliant Regime – Managing the Risks
• Disclosure and Reporting Obligations

For those interested in the programme and looking to explore what is covered in the full syllabus, please register your details with CLT International by visiting STEP Postgraduate Diploma - Syllabus.

You will also be provided with access to the exclusive informative ‘Standards, Research & Assessment’ webinar(s) which will explain how candidate performance is assessed.

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