JTC is perfectly placed to support other financial service providers wishing to enter or exiting the fiduciary market. We can seamlessly transfer their clients to our platforms or assist them through the appropriate process to establish their own set-up, using anything from a Managed Trust Company to a simple introducer’s agreement.
MARKET ENTRY SOLUTIONS
Why enter the trust and fiduciary sector?
Some wealth managers, particularly in developing markets, are seeking to diversify and enhance their suite of services by offering their clients bespoke solutions involving trust and fiduciary services.
Key benefits of partnering with JTC
There are a number of benefits in partnering with a global strategic partner to provide this offering on a wealth manager’s behalf, including:
- An extended suite of services to create enhanced and deeper client relationships
- Economic benefits including revenue streams without the requisite investment in complex systems and technology
- Leaving the complex regulatory regime to be dealt with by practitioners with extensive experience and expertise
- Efficiencies from dealing with uniform processes and a centralised point of contact
Partnering solutions
There are a number of forms of partnership available, ranging in complexity, from a full managed trust company (MTC) arrangement to a simple introducer’s agreement.
The Managed Trust Company (MTC)
It is our experience that leading-edge wealth managers in emerging markets find the MTC arrangement attractive.
In practice, this involves partnering with us for the incorporation and licensing of the MTC which can be branded consistently with the wealth manager itself. At the same time, the MTC utilises our expertise in the provision of trust and fiduciary services to perform the outsourced or white labelled administration. In doing so, we provide the regulatory risk and compliance function. Uniquely, we can assist the MTC to obtain its own cover at highly competitive rates, leveraging our impeccable professional indemnity insurance record and MTC policies and procedures.
In addition to the benefits of partnering with us for private wealth services, the MTC provides wealth managers additional benefits such as:
- Supporting the balance sheet through the creation of a scalable and saleable enterprise
- Further entrenching client relationships
Conceptually, the MTC operates as follows:
Introducer’s agreement
Under an introducer’s agreement, we provide trust, fiduciary and corporate services to clients of a particular wealth manager under specific agreed commercial terms.
MARKET EXIT SOLUTIONS
Why exit the trust and fiduciary sector?
Our experience is that selected wealth managers, private banks in particular, are looking to exit the trust and fiduciary sector. This is due to a number of reasons, including:
- A prioritised focus on building assets under management
- Insufficient reward for the risk associated with maintaining robust internal infrastructure and capability against a backdrop of constant regulatory change and increasing cost
- Increased client need for multi-jurisdictional expertise that the wealth manager can only meet through a strategic partnership
- Access to service expertise in a 24/7 environment
Key benefits of partnering with us
Whatever the motivation, the benefits to the wealth manager of partnering with us include:
- Seamless transition of client transfer by understanding the wealth manager’s goals and minimising impact on the wealth manager and its clients
- Possible revenue streams emerging
- Dealing with a partner with extensive experience and expertise in bulk on-boarding of clients
- Effective and efficient meeting of the wealth manager’s institutional objectives
Partnering solutions
Through our experience in implementing such solutions, we have established processes for dealing with the transfers from both an institutional and private client perspective.
From experience, we are acutely aware of the sensitivities that can surface during the transfer process and recognise that it is typically a priority to ensure that the process is as seamless and efficient as possible in order to maximise client satisfaction.
Quite simply, it is our commitment to our strategic partners and their clients to deliver on these priorities – this is our reputation and practice.
While the processes do vary depending on the engagement, it commonly entails the following:
Process for implementation at institutional level
| CONNECT | DISCOVER | DEFINE | PROCESS | COMMUNICATE |
|---|---|---|---|---|
| Initial high level meeting and execution of non-disclosure document. | Detailed meeting to understand scale, timelines, priorities and sensitivities. | Documentation of scope and agreeing terms of strategic relationship (Including commercial terms) | Agree the process inclusive of: - Template documentation Communication KYC requirements | Agree communication to clients including the specifics of the transfer process. |
Process for dealing with clients
| COMMUNICATE | DEFINE | TRANSFER | EXCHANGE | ENTRUST |
|---|---|---|---|---|
| Communicate to clients: - Visitations - Meetings - Telephone | Provide proposal including scope of services and terms of business. | Agree client specific transfer documentation with strategic partner. | Provision of CDD/KYC. Execution and exchange of transfer documentation (including bank account mandates). | Formal take-on: - Physical transfer of records - Acceptance of trust property - New trustee/director - New bank account mandates |
