Compliance is a continuing responsibility and maintaining proper governance and management ensures that the trust operates smoothly and in accordance with its trust deed and applicable legislation. Our approach is, therefore, to operate as usual, ensuring that all regulatory, administrative and fiduciary duties are maintained with the same level of diligence, regardless of the calendar.

So, what are those regulatory duties?
Below is a brief overview of key compliance areas that trustees should focus on.

Annual General Meeting of Trustees
The annual general meeting (AGM) of trustees is essential for good governance. It ensures that the trust is managed in accordance with the trust deed and relevant regulatory requirements. During the annual general meeting, trustees review the trusts financial position, assess distributions and evaluate whether the trusts activities remain aligned with its intended objectives in terms of the trust deed. It provides a forum to document decisions made by the trustees, address compliance matters, and evaluate any potential risks. Conducting an AGM creates a clear record of proper administration which is essential for demonstrating compliance and maintaining the integrity of the trust.

Trust Resolutions
A trust resolution is a formal written record of a decision taken by the trustees. The purpose of a trust is to provide evidence that the trustees have considered and made a unanimous decision on the course of action in accordance with the trust deeds and regulatory obligations. This ensures transparency and accountability.

Property Transactions
When a trust acquires or disposes of immovable or movable property, trustees have a responsibility to ensure that these transactions are properly authorised and recorded. Trustees should ensure that all transactions are supported by resolutions and align with the trusts purpose and financial position. Proper management and compliance in respect of property transactions safeguards the trust against possible legal disputes and protects the interests of the beneficiaries.

Compliance with the Financial Intelligence Centre Act 38 of 2001
The Financial Intelligence Centre Act 38 of 2001 (FICA) requires trusts to keep its records up to date and verify the identity of the trustees, beneficiaries, and any other party with whom it conducts business. Compliance with this Act aids in the prevention of money laundering and other financial crimes. Trustees must ensure that all their information and documentation, such as identity documents and proof of address, are up to date. FICA compliance is essential for the trusts credibility.

Ultimate Beneficial Owners
Trustees must maintain a proper record of the trusts ultimate beneficial owners (UBO). This term includes the founder/s, trustees and beneficiaries. Keeping accurate and updated UBO registers is a requirement under Section 11A of the Trust Property Control Act 57 of 1988. The information which is required on a UBO register is the full names or entity name, identity number or registration number, nationality, residential address, domicilium address, contact details, grounds on which each person or entity became a beneficial owner, the effective date on which each person or entity became a beneficial owner, and the date on which each person or entity ceased to be a beneficial owner (where applicable). Keeping these records up to date protects the trust and demonstrates responsible management.

Standard of Fit and Proper
Trustees are required to be fit and proper persons, meaning they are expected to act with honesty, integrity and competence in administering the trust. Trustees are required to avoid conflicts of interest, exercise their duties diligently and ensure that all decisions made in respect of the trust are in the best interests of the beneficiaries. Documenting compliance with this standard through AGMs, resolutions and proper record-keeping safeguards the trustees against liability.

Even after the financial year-end, trust compliance remains an ongoing obligation. Regular AGMs, properly documented resolutions, prudent management of property transactions, FICA and UBO compliance, adherence to fit and proper standards, and the preparation and reviewing of annual financial statements are all critical components of a well-managed trust. In properly attending to each of these aspects, trustees can protect the trust, maintain regulatory compliance, and ensure that the interests of beneficiaries are protected. Compliance with the above standards is the foundation of effective and responsible trust administration.