Trust management without a license in the EU
A licensed company or fund can manage assets for the benefit of the client in order to maximize returns for the investor. This helps not only preserve but also significantly increase the investment of a legal entity or an individual.
There are several options for managing client assets:
1. Licensed сompany can manage client assets:
- Through a sub-account or omnibus account structure;
- On the basis of a power of attorney.
Management of funds of 3 persons is possible only if licensed. A license is available in the following jurisdictions:
1) Vanuatu - Security Dealers License.
- A minimum of one director is required.
- According to the license there is a requirement for the experience and education of the director and the representative of the company, for which the license is issued. For registration of a company with a Vanuatu brokerage license the amount of the authorized capital required is 48 000 US dollars.
2) Seychelles Forex License.
- Have a local company in Seychelles with a $50,000 share capital.
- The company must have at least 2 directors with relevant experience.
- Have an operating office in Seychelles.
- Hire a local compliance officer.
3) Mauritius - Investment Dealer License.
- Must have two directors who are individuals resident in the Republic of Mauritius, a secretary who is resident in the Republic of Mauritius, and a local registered office.
- There is a requirement for the director: must have a proper level of qualification in finance or banking and have a good professional reputation. For traders, it is necessary to have certificates as proof of their professional qualities. It is possible to combine some positions with one person.
- Authorized capital - 1 000 000 MUR (equivalent of 30 000 USD - 35 000 USD).
2. Management of clients’ assets via fund structures.
One of the most suitable jurisdictions for opening a fund is Panama. In this case, clients buy mutual funds and the fund manages the assets.
The main advantage of the creation of a fund in Panama is the adapted laws for foreign investors. Thus, for citizens, who invest their finances, favorable conditions, as well as the protection of confidentiality right are offered.