Trustee Corporations have a unique role in maintaining investor confidence.

Trustee Corporations Association's Role

The Trustee Corporations Association of New Zealand Inc is a long established voluntary association to which all statutory Trustee Corporations belong. TCA acts as a vehicle for the protection of investors by establishing standards for the industry, maintaining relationships with government ministries, regulatory bodies and financial sector groups.

Organisations seeking funds from the public must have a trust deed which establishes the processes, parameters and legality of their operations and their responsibilities to those they are borrowing from. They must also have a Trustee, who has the role of ensuring these defined responsibilities are met.

TCA members also act as Trustees in a wide range of other areas, usually because of legal requirements to protect the interests of investors and beneficiaries. Examples include retirement villages and many personal services ranging from family trusts to estate planning and management.

History

The Trustee Corporations Association of New Zealand was formed in 1989 as successor to the Trustee Companies Association of New Zealand, following the admission of the Public Trust. The Association had previously operated since the 1920s, except for the period from 1947 to 1985, when it was a part of the Trustee Companies Association of Australia and New Zealand. TCA maintains a close relationship with TCA Australia.

The Association was incorporated in 2007.

The Trustee Proposition

The Fiduciary Obligations

Trustees must be:

Independent
Honest
Prudent
Impartial
Professional

The Corporate Trustee’s most visible role is to act as the prudential supervisor to financial arrangements providing independent oversight for issues of securities to the public, in accordance with their specific legislation.

Corporate Trustees also undertake a number of non-public roles where a financial arrangement requires elements of independence.

The obligations above are also important to private individuals as well. Trustee Corporations provide a safe, reliable provider of services such as will preparation, estate administration, enduring powers of attorney, setting up and administering trusts for future generations or family members under a disability. Also under a Power of Attorney, members manage property and investments for those who are elderly or do not wish to look after these matters for themselves.

A Trustee Corporation offers an impartial stewardship ensuring all beneficiaries are treated fairly and avoiding conflicts of interest. Trustee Corporations provide a long term solution – their corporate structure will endure long after the present generation of family members and their lawyers have retired from active participation.

Corporate Trustee’s core responsibility is “to act for the benefit of another” interpreted as protecting the interests of beneficiaries and investors. There are statutory obligations as well contained in legislation including the Trustee Act, the Trustee Companies Act, the four Trustee Corporations Acts and the Securities Act.

TCA Members

There are five members of TCA and one associate member.

Members:

Trustees Executors Limited
Perpetual
Public Trust
The Guardian Trust Company of New Zealand Limited
Maori Trustee

Associate Member:

Covenant Trustee Company Limited

TCA Executive

TCA is governed by an Executive, appointed by the member companies. The Chairman is elected annually by the members at the AGM. Day to day running of the association is in the hands of an Executive Director, with policy guidance provided by a number of industry related committees.

The Current Executive members are:
Chairman: Clynton Hardy (Regional Manager Corporate Trust, Trustees Executors Ltd)
John Botica (Managing Director, The New Zealand Guardian Trust Company Ltd)
Patrick Middleton (Chief Executive Officer, Perpetual Group)
Grenville Gaskell (Chief Executive, Public Trust)
Jamie Tuuta (Maori Trustee)
Graham Miller (Managing Director, Covenant Trustee Company Ltd)

TCA Committees

TCA industry related committees are:

Corporate Trust Managers
Personal Trusts and Advisory Services Committee
Taxation and Accounting
Back Office Services
Retirement Villages (sub committee)
Legal (sub committee)

TCA Constitution

To view the Trustee Corporations Association of New Zealand Inc Constitution, click the link below.

Download the TCA Constitution

TCA Code of Practice

The TCA Code of Practice is split into two areas: Code of Practice for Corporate Trusts and Code of Practice for Personal Client Service Activities. You can download these as PDFs below.

Download the TCA Code of Practice for Corporate Trusts

Download the TCA Code of Practice for Personal Client Service Activities

TCA Complaints

With the introduction of the Financial Service Providers (Registration and Disputes Resolution) Act 2008, from 1 December 2010, the TCA based complaints resolution service has been superseded by the two dispute resolution service providers approved by the Minister for Consumer Affairs.

Typically these providers will consider complaints of up to $100,000 to $200,000 which have been through the Trustee Corporation’s internal dispute resolution process and reached “deadlock”. A complaint can then be lodged, for resolution by negotiation, conciliation or investigation with the Trustee Corporation's provider.

There are two approved organisations currently providing dispute resolution services to Trustee Corporations and their clients. Their focus is on resolving complaints through conciliation and assisted negotiation. They may also be able to make formal Determinations which are binding on Trustee Corporations.

The dispute resolution service providers are:

Financial Services Complaints Ltd (Guardian Trust, Perpetual, Trustees Executors and Covenant Trustee), [ click here ] and
The Insurance & Savings Ombudsman (Public Trust and Maori Trustee). [ click here ]

Their services are free to consumers. Funding is provided by Trustee Corporations which recognise the importance of offering independent and impartial alternative dispute resolution to their customers.