Compliance, Legislative & Regulatory Standards
[Webinar] Trust Training Certificate (TTC) (version 2.0) - Unit 5: Trustees and Compliance
Overview
This is Unit 5 of the "Trust Training Certificate" ("TTC") (version 2.0) training programme.
It consists of three modules:
Module 8: Trustee Duties
Module 9: Hong Kong Securities and Futures Commission Regulatory Activity 13 Regime
Module 10: Hong Kong Monetary Authority’s Code of Practice for Trust Business
For details on the topics to be covered, please refer to the 'Content' section below.
If you wish to register for the full TTC (version 2.0) Part A training programme and examination, click here.
Objective
On completion of the course, learners should be able to:
(a) understand the fiduciary duty of a trustee
(b) understand a trustee's duty of care and duty to comply with the trust deed
(c) understand the consequences of and recourses available against a trustee who has breached trustee duties
(d) understand how the various duties of trustees manifest in ethical behaviour and what this means
(e) understand the scope of RA 13 and know its applicability to entities and to individuals
(f) understand the RA 13 licensing process and know the requirements
(g) know the ongoing compliance requirements of licensed or registered RA 13 depositaries and licensed representatives / relevant individuals of RA 13 depositaries
(h) understand the scope of the Code and the SPM Module TB-1
(i) list what trust activities are covered under SPM Module TB-1 (including the exemptions)
(j) gain awareness of the requirements imposed under the Code and the SPM Module TB-1 with respect to trustees and the HKMA's supervisory approach
(k) know and understand the general principles and practical standards under the Code
Content
Module 8: Trustee Duties:
1. Fiduciary duty of a trustee
• What is a fiduciary relationship?
• Beneficiaries of a trust
• Fiduciary duties and their nature
• No-conflict rule
• No-profit rule
• Undivided loyalty
• Duty of confidentiality
2. Duty of care (non-fiduciary duty)
• Introduction
• Common law duty of care
• Statutory duty of care under Trustee Ordinance (Cap.29)
• Functions to which the statutory duty of care applies
3. Duty to comply with the trust deeds
• Duty to comply with the terms of the trust
• Duties and powers
• Managing the liability of trustees (effect of exclusion clauses and disclosure in trust instrument)
4. Consequences for breach and recourse available against the trustee
• Introduction
• Consequences for breach of trust generally
• Other equitable recourse available against a trustee for breach of fiduciary duties
• Breach of confidence
5. Ethical Behaviour
Module 9: Hong Kong Securities and Futures Commission Regulatory Activity 13 Regime:
1. Scope of RA 13
• Scope of RA 13
• Who needs to be licensed / registered for RA 13
2. RA 13 Licensing Requirements
• Introduction
• Licensing / registration criteria for RA 13 depositaries
• Licensing/ registration criteria for personnel of RA 13 depositaries
3. Ongoing Compliance Obligations
• Introduction
• Schedule 11 to the Code of Conduct
• Securities and Futures (Client Securities) Rules (Chapter 571H of the Laws of Hong Kong) ("CSR")
• Securities and Futures (Client Money) Rules (Chapter 571I of the Laws of Hong Kong) ("CMR")
• Securities and Futures (Keeping of Records) Rules (Chapter 571O of the Laws of Hong Kong)("KRR")
• OTC derivative reporting and clearing regime
• Other Subsidiary Legislations and Codes and Guidelines
Module 10: Hong Kong Monetary Authority’s Code of Practice for Trust Business:
1. HKMA’s Code of Practice for trust business
• Introduction
2. To whom does SPM Module TB-1 and the Code apply?
3. Which trust activities are covered?
4. Which trust activities are exempted?
5. Requirements imposed by SPM Module TB-1
• Conduct requirements for trustees
• Appointment of managers and responsible officers
• Introduction or referral of trustees
• Notification and reporting requirements
6. Supervision by the HKMA and list of trustees
• Supervisory approach
• List of trustees
7. General Principles under the Code
Who should attend
This course is primarily designed for individuals who are interested in obtaining the "Trust Training Certificate" to qualify for the Hong Kong Trustees' Association Certified Trust Practitioner™ designation.
It is also relevant for individuals seeking a comprehensive understanding of the course subject matter and those planning to enter the Trust industry sector.
Financial Incentive Scheme of the WAM Pilot Programme
This course has already been approved as an eligible course of the Financial Incentive Scheme for Professional Training (“the Scheme”) under the Pilot Programme to Enhance Talent Training for the Asset and Wealth Management Sector (“the Pilot Programme”). The Scheme aims to enhance the competency and professionalism of in-service practitioners within the asset and wealth management sector and to assist other practitioners within the financial services industry in acquiring the knowledge and skills required for entering the sector. Eligible applicants will be subsidised 80% of the course fees by the HKSAR Government upon satisfactory completion of the courses approved by Hong Kong Securities and Investment Institute, subject to a ceiling of HK$15,000. Hong Kong Securities and Investment Institute is appointed as the implementation agent of the Pilot Programme. Regarding the details of eligible criteria and application procedures, please refer to the dedicated web-site of the Pilot Programme (https://www.wamtalent.org.hk/).
Speaker/Course Instructor
Frank’s practice focuses primarily on banking regulatory and advisory matters.
Details
Click here if you wish to register for full TTC (version 2.0) Part A training programme and examination.