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EC Trust (Labuan) Bhd
Investment and Trust Services
BACKGROUND
Many jurisdictions have laws, which prohibit the offers of prescribed interests or
interests in “managed investment schemes” to the public of that jurisdiction (more
than 20 people unless “sophisticated investors”) without a prospectus registered by
the domestic corporate regulatory authority.
Those laws mean that interests in Funds or other investments which may be
registered as a licensed Private or Mutual Fund in another jurisdiction, say,
Malaysia, cannot be made available to more than 20 members of the public in other
jurisdictions.
EC Trust (Labuan) Bhd is a licenced Trust company which is audited and regulated
under Malaysian law and is licenced to settle and act as Trustee for any form of
Trust. In its capacity as Trustee of a Trust, EC Trust is not prohibited from the law of
other jurisdictions from having offers of prescribed interests or interests in managed
investment schemes made available to it in Malaysia.
EC Trust (Labuan) Bhd provides the following services –
1.
Creation of a Trust to Interested Parties.
2.
As Trustee of the Trust, acceptance of a loan and issue of a debenture on
agreed terms to an applicant investor. (This debenture holder would have no
interest in any managed investment scheme).
3.
As Trustee of the Trust, acceptance of investment advice from any advisor
nominated by the settlor or interested party of the Trust and the consequential
making of those investments.
4.
As Trustee of the Trust, properly account for the income and capital of the
Trust and make distributions to any appropriate beneficiary, expend for any
designated and/or charitable purpose and/or accumulate the income of the
Trust in accordance with the Trust Deed.
The debenture holder would be taxable on any interest paid or credited to it.
There should be no other income which “but for the scheme, would have been
included in the taxable income of the investor”, as the investor is prohibited by the
domestic company law from having interests in managed investment schemes
offered to it in its domestic jurisdiction. And even if there were such a “tax benefit”,
the above arrangement would not be entered into for any tax benefit, but rather, is
necessitated by company law considerations.
The Trustee of the Trust should be taxable on the income of the Trust in accordance
with the laws of Malaysia.
The beneficiaries to whom distributions are made would be taxable in their country
of residence.
Interested parties, settlers and beneficiaries should obtain their own, independent
tax advice.
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GUIDE FOR FILLING OUT FORMS
The following documents are an application form to EC Trust (Labuan) Bhd requesting the
Particulars of a Trust and to use the Trust Bank account facilities. The forma also contain a request for
the issuance of a Debenture for funds that may be placed into the Trust Bank account. Trust Bank
account signatories may be in personal names. Debentures are issued in the name of the Entity that
places the funds, whether they be Self Managed Superannuation Funds, Companies, Trusts or
personal placements.
1. Particulars of Trust
A trust is not a separate legal entity, but is a legal relationship, usually created in writing, whereby a
person called the “settlor” (“S”) or “grantor” places assets (usually by way of gift) under the control
of a Trustee (“T”) for the benefit of persons called “the beneficiaries” (“B”). It is the latter’s ability to
enforce the terms of a trust which is at the heart of the trust relationship.
Please complete the attached form and return with copy passports of interested party and
beneficiaries. The interested party will be taken to be the Advisor to the Trustee, being the person
who may advise the Trustee as to the course of action it should take including the making of
appropriate investments and distributions to beneficiaries.
2. Deed of Indemnity and Management
This is a Deed executed by the Interested Party and the Trustee to establish the legal relationship
between them concerning the management of the Trust. The Deed makes provision for specific
Advisor(s) who may be different persons to the Interested Party, for example an investment advisor
or other trusted person.
3. Investment Agreement (if any)
Complete any Investment Agreement which would indicate into which opportunities you would like
the Trust funds to be placed including the name of the Trust that is proposed to make the placement.
4. Telegraphic (TT) Form.
If you have decided to lend funds to the Trust in accordance with the proposed debenture details at
clause 1(b) of the Deed of Indemnity and Management, please fill out the Telegraphic Transfer form
and take it to the bank from which the funds will be transferred.
5. Post Documents
Post all the abovementioned documents at the same time including a copy of the Telegraphic Transfer
to:
U0195, Jalan Merdeka,
87007 Federal Territory of Labuan,
Malaysia
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PARTICULARS OF TRUST
UNDER THE LABUAN OFFSHORE TRUSTS ACT, 1996 IN THE FEDERAL TERRITORY OF
LABUAN MALAYSIA
U0195, Jalan Merdeka, 87007 Federal Territory of Labuan, Malaysia
Telephone No: +6 087 453 858, 452858 Facsimile No: +6 087 453 616 E-mail: info@ectrustco.com
Areas marked yellow is for clients to complete.
(See Notes Attached)
1.
Interested party/Advisor
1.1
Name & Address
:
……………………………………….………………………
……………………………………….………………………
2.
1.2
Telephone number
:
……………………………………….………………………
1.3
Fax number
:
……………………………………….………………………
1.4
Other contact number
:
……………………………………….………………………
1.5
Email
:
……………………………………….………………………
Proposed name of Fixed/Discretionary Trust (delete whichever is inapplicable)
: ……………………………………………………………………….………………………..
: ……………………………………………………………………….………………………..
3.
Information on person(s) to be the beneficiaries of the Trust
Beneficial Owner(s)
Address
Extent of (Fixed) Interest
……………………………….……
………………………………..…
………………………………
……………………….……………
………………………………..…
………………………………
……………………….……………
………………………………..…
………………………………
Please provide copies of passport(s) or certificate of registration (in the case of a corporation).
Signed and confirmed by Interested Party
Dated: _____________________________
For office use:
Approved by:
Name:
Sign:
Dated: _____________________________
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