How does a firm assist with Swiss bank dispute resolution?

The firm acts as an independent intermediary to audit bank performance and ensure compliance with fiduciary duties, helping clients resolve conflicts where a bank’s revenue targets may override a client’s investment objectives.

What should be considered when choosing a licensed trust company?

Key factors include the firm's jurisdictional breadth, the level of debt in its ownership structure, staff competence, and the rigour of its compliance procedures to avoid professional conflicts.

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Trustees and Banks

Bender Brothers & Co specialises in the selection and continued oversight of trustees through protectorships. It has longstanding experience with the Channel Islands, Caribbean, Hong Kong and Liechtenstein. There are a number of factors to consider when choosing a licensed trust company, such as the levels of debt in its ownership structure, competence of staff, remuneration policy, rigour of compliance procedures and jurisdictional breadth. Bender Brothers & Co provides protectorships to ensure that the interests of beneficiaries are not overlooked and to avoid professional conflicts. It is important that trustees are not incentivised to prioritise revenue targets over their fiduciary duty, which has led to hefty regulatory fines in recent history.

As a settlor is usually required to relinquish control over assets to maintain the ‘arms-length’ quality of a trust, there is a clear need for safeguards other than potentially expensive litigation. A protector’s role is to oversee the good governance of a fiduciary arrangement on behalf of the beneficiaries. He would typically have the power to replace trustees in cases of failing to act in good faith (dishonesty) or to provide a service to a reasonable professional standard (incompetence). A protector’s intervention could remove a need for lengthy litigation and should provide considerable comfort for both settlors and beneficiaries.

Bender Brothers & Co has strong relationships with leading banks and asset managers in Switzerland, Liechtenstein, Hong Kong and Singapore. There are a number of factors to consider when choosing a service provider amongst which are counterparty risk, ownership structure, remuneration policy, efficiency of compliance procedures and legal aspects of the jurisdiction concerned. Bender Brothers & Co can assist with introductions to leading financial institutions and continued support with the relationship thereafter. As the firm is seen as a strategic relationship for a number of banks, it is often possible to negotiate preferential terms on behalf of external clients.

Working with financial intermediaries has become increasingly challenging for clients. Conflicts of interest often arise when staff are incentivised with sales targets and made redundant when objectives are not met. Furthermore, complex financial products and portfolio churning may obscure hidden margins and fees. By providing ongoing assistance with the management of banking relationships, our office can afford clients a high level of continuity when there is staff turnover at the company providing services. Navigating the vagaries of compliance requirements can also be frustrating, particularly at the initial stages. It is important that such processes are managed efficiently so that they do not hinder the smooth running of an account.