By: Perpetual  06-Dec-2011

Corporate Trustee for Debt Securities - New Zealand

The Securities Act 1978 requires the appointment of a corporate trustee for any offering of debt securities to the public in New Zealand. The most common debt securities issued to the public and by private placement under a Trust Deed are debenture stock, secured and unsecured notes and bonds. Our role as corporate trustee is to oversee the activities of the issuer on behalf of the investors.

Securitisation Trusteeship

The securitisation of assets including property, receivables and mortgages has developed strongly in New Zealand recently. Key benefits can include improved capital management, increased liquidity and the transfer of risk to investors. A securitisation trustee performs a similar role to a debt trustee and can also perform a more custodial role where an asset trustee is required.

Statutory Supervisor for Participatory Securities

This is a requirement of the Securities Act 1978. These securities are to participate in a scheme where a bundle of rights are being offered rather than a pure issue of debt securities. They are most commonly seen in schemes such as forestry partnerships, retirement villages, and marinas.

Corporate Trustee for Group Investment Funds - New Zealand

The Trustee Companies Act 1967 stipulates that only authorised trustee companies can offer group investment fund structures to the New Zealand public.  Historically group investment funds have been biased toward property and mortgage security type investments, in contrast to the wide variety of equity-based investments offered through unit trusts. However, with recent legislative changes, group investment funds have been given more scope and other purposes for group investment funds are being used.

Corporate Trusteeship for Superannuation Schemes - New Zealand

The Superannuation Schemes Act 1989 requires registered schemes to be governed by a Trust Deed and to appoint a trustee.  Although the establishment of new superannuation schemes has not been common in recent times, the government's consistent message for people to fund their own retirement has required that this structure be revived.

Prudential Supervision of Credit Unions

Credit unions are required to comply with certain provisions of the Securities Act 1978, including appointing an independent prudential supervisor and entering into a trust deed.  This regime has assisted credit unions in the provision of financial security for their members.