Coupled with the evolution of the society as well as economic and social changes, trust mechanism has played an important role in our society. Trust is now widely accepted by people in Taiwan and is also applied in many different areas, especially in wealth management and financial planning.
KGI Bank’s trustee services can provide the following benefits/synergies:
1.Provide diversified trust products/services to meet clients’ needs and strengthen client relationship.
2.Effectively reduce the risks involving loan provision through use of trusts
3.Provide wealth management service on the trust platform.
4.Increase cross-selling opportunities within the financial holding company.
KGI Bank provides the following major trust products/services:
- Trust of Money: KGI Bank assists settlors in transferring or protecting their assets in a safer and more efficient way. Trust of money can be tailor-made according to each client’s needs.
- Specific Trust of Money: This is a type of trust mainly investing in onshore funds, offshore funds and securities for wealth management purpose. There is a wide range of investment products available for clients’ choice on KGI Bank’s wealth management platform. Our specific trust of money service can meet clients’ needs in investing various types of domestic and overseas financial products and help them achieve their pre-determined financial objectives.
- Real Estate Trust (including real estate trust and superficies trust): There are three main types of real estate trust, including real estate development trust, real estate management trust and real estate disposal trust. Superficies trust, which has increasingly become popular, is considered part of real estate trust.
- Securities Trust (plus securities lending): Securities in the trust with KGI Bank can be lent to borrowers to earn lending fees. Settlors can recall their shares at any time with prior notice to the trustee if they intend to sell the shares. Settlors are still entitled to dividends if they choose not to recall their shares before ex-dividend. Securities lending is considered safe as borrowers need to deposit collateral which is valued mark-to-market on a daily basis.
- Trust of Advanced Payment: KGI Bank can be appointed as a trustee by gymnasiums, cord blood banks and gift certificate issuers to manage advanced payment made by consumers. This type of trust is required by the regulators and is aimed to protect consumers’ rights and ensure safer transactions.
- Life Insurance Trust: The settlor (i.e., the beneficiary of an insurance policy) can sign a trust agreement with KGI Bank as trustee. In the event that an accident happens, the claim amount will be credited to the trust account at KGI Bank. KGI Bank will manage the money in accordance with the trust agreement.
- Charitable Trust: KGI Bank can act as the trustee for charitable trusts with purposes of charity, culture, academics, religion or public interest. With charitable trusts, settlors can help promote public interest and take care of those people in need. Any donation given to a charitable trust can be tax deductible to the extent of 20% of the donor’s annual income. Compared with foundations, charitable trusts are more flexible as the principal can be used and there is no minimum amount of donated funds which should be used up per year. Charitable trusts have become an important and popular instrument in Taiwan for doing charity works.
KGI Bank provides the following major trust-affiliated products/services:
- Custody of Securities: KGI Bank provides custodian service for clients to safekeep securities like equites, bonds and any other securities approved by the regulator.
- Custodian Banking Service: KGI Bank provides custodian service for foreign investors (including FINIs and FIDIs), discretionary investment accounts and securities investment trust funds. Regarding the custodian service for foreign investors, KGI Bank offers FINI/FIDI registration, account opening, foreign exchange transactions, trade settlement, safekeeping of assets, reporting, etc.
- Securities Verification Service: This service is aimed to prevent forged securities or over-issuance of securities. Physical securities like stocks, corporate bonds, etc. need to be verified and stamped by a qualified bank to prove their genuineness as well as issuance within the quota authorized by the regulator.
- Trustee Service for Corporate Bonds: As a trustee for corporate bonds, KGI Bank will represent bondholders’ interest and monitor the terms and conditions as specified in the Trust Deed.
- Custodian Service for Guarantee Deposits: KGI can safekeep guarantee deposits provided by brokers, introducing brokers, discretionary investment account managers, etc. as required by the regulator. Such deposits can be in the form of cash, bank deposits, government bonds or financial bonds.