by Rosemary Marr, Chairman ,Society of Trust and Estate Practitioners, Jersey Branch.

Whether reading a national or local newspaper, professional magazine, or "Careers Monthly", one cannot avoid the plethora of advertisements inviting applications for positions as trust professionals at all levels very often demanding professional qualifications and a number of years of relevant experience.

What is a trust officer/trust administrator and what does the job entail?

Who are these prospective employers?

What professional qualifications should I have and/or what professional studies can I undertake?

What is STEP?

The definition of a trust officer which I like is one that I saw recently on the website of a North American organisation. It reads:-

"A specialist who has an in-depth knowledge of trust, income tax and related laws. The trust officer’s estate and trust technical experience enables him/her to handle the administration of an estate or to act as a trustee".

Twenty years ago a trust officer would expect normally to undertake some estate administration work as part of their everyday client work. Nowadays this interesting work is mostly undertaken by specialist departments and chiefly by law firms.

The concept of the trust had its origin in England as a creation of the Anglo-Saxon legal system, but it was not until 1906 on the passing of the Public Trustee Act that legislative recognition was given to the management of trusts as a business. Interestingly, the infamous "South Sea Company" had, in 1845, sought to change the company into a public trust company to undertake the administration of trusts on a commission basis!

A trust company has onerous responsibilities and duties to its clients, which it is not my intention to elaborate on here. Put simply, the role of the trust company is to ensure that a client’s wealth is professionally managed in a secure, financial environment, in order to preserve and enhance the value of those assets along with providing expertise, independent judgement and continuity of management.

The nature and variety of the business undertaken by trust companies has changed and evolved over the years and the work has become more complex - some might say, more interesting. The clients too are likely to be more knowledgeable and discerning. Many will be from international families.

The financial assets managed for clients and services provided are many, for example:-

• Managing and holding freehold or leasehold property (commercial or residential). The property may be located in the United Kingdom or elsewhere in the world;
• Managing quoted investments either directly or through third parties, but always with the appropriate level of advice e.g. from asset managers or stockbrokers;
• Holding intellectual property rights;
• Managing cash deposits in sterling and other currencies;
• Acting as trustee for private family trusts of different types;
• Acting as trustee of employee benefit trusts;
• Arranging for the incorporation of companies either belonging to trustees, or stand alone, and providing secretarial and other services thereafter;
• Provision of book keeping and accounting services;
• Providing payroll services;
• Captive insurance companies.

In fulfilling his or her duties the trust professional will be dealing on a daily basis with persons from other professions, the bankers who hold the cash deposits, the lawyers advising on property transactions or on trust matters, the accountants dealing with the audit of the company’s books, the investment advisers conducting a review of the investment portfolio, or the tax professionals advising on tax deferment or tax mitigation. The respective advisers may be in your home jurisdiction, or somewhere else in the world, wherever best advice and services can be obtained.

The trust officer will correspond with his or her clients, by telephone, letter, fax or e-mail, and, ideally, meet regularly and establish a professional relationship with that client. Regular reports will be given to the client and perhaps to his or her lawyers or other advisers. Accounts will be prepared for the trust either by the trust officer or by a separate accounts department of the trust company. There will be a review conducted periodically of the whole trust file. Investments will be monitored frequently to ensure the ongoing suitability of those investments and the performance of the portfolio.

In administering the affairs of the clients the trust officer working in the modern day environment must be familiar with the concept of money-laundering and the threat it poses to financial services businesses. He or she will understand the importance of the " know your client" (KYC) regime and have a knowledge of the regulatory environment in which the trust company operates. The employer has an obligation to ensure that staff are sufficiently trained to ensure that they are aware of KYC disciplines and other compliance issues.

The trust companies seeking prospective employees fall into 3 main categories:-

• Trust departments of banks;
• Trust companies belonging to or associated with law firms or accountancy practices;
• Independent trust companies.

The number of employees of the trust company and the way they are organised will probably influence the range of experience required of any prospective candidate for a particular position.

Those working in a smaller trust company are more likely to undertake a wider range of functions than those persons working for larger organisations. For example, there may be a separate book keeping and accounts department or there could be a department which deals with all statutory matters in a larger company.

In the case of the banking institutions, the strength of a bank in one particular jurisdiction may influence the nature of the work undertaken and of course, the nationality of the clients. A bank is more likely to make use of its relationship officers in territories remote from the trust company’s base. It may well have access to investment advisory services from its own in "in-house" experts as well as offering its own banking services. Similarly a law firm or accountancy practice will offer its expertise to the trust company with which it may be associated or own.

Whilst there is a continuing demand for experienced trust professionals, having an appropriate qualification, there are opportunities for school leavers with GCSE and/or A level passes, graduates, those persons seeking to re-train as trust professionals, or more mature persons wishing to return to work. Take my own case. Having originally worked for a clearing bank and then having taken a break of a few years to look after my 2 children, I was employed by a trust company and I decided that trust administration was for me (and much more interesting than banking). I qualified by taking the Chartered Institute of Bankers (Trustee Diploma) at a relatively mature age.

What do we look for in a prospective employee in the trust department? The answer is someone with a good standard of education, common sense, organisational skills, a willingness to learn and train, someone with commitment and who is conscientious. Another personal skill which to my mind is vital in our line of work is the ability to communicate to all levels. From an employer’s perspective, there is something very satisfying in setting someone on a career in the finance industry, witnessing their progress through the company and attaining a relevant professional qualification along the way.

As Chairman of STEP, Jersey Branch, I am bound to say that the STEP examination route is the ideal regime for someone working in a trust company business and seeking a professional qualification.

There are other qualifications e.g. ICSA, but the most relevant for those of us working in an offshore environment is the STEP Foundation Certificate and Diploma in Offshore Trust Management. This programme was launched in 1999 and a 3rd tier, an MBA for wealth managers, fiduciaries and trustees through Manchester Business School, was introduced this year.

The Foundation Certificate and Diploma are taught through a mixture of distance learning, face to face tuition and a web site Help line facility. Whilst the Foundation Certificate is general in nature, it provides useful background information and general knowledge of trust practice.

The Diploma covers the following subjects:-

• Trust creation, law and practice;
• Trust administration and accounts;
• Trustee investment and financial appraisal;
• Company law and practice.

With dedicated study and on successful completion, the award of the STEP Diploma in Offshore Administration can be achieved in approximately 2 years. The Diploma programme leads to a qualification which will be acceptable in other financial centres. It is taught not only in the Channel Islands, but also for example in the Caribbean region and in Switzerland.

At a local level the Certificate in Offshore Administration (COA), with which many of us in the Islands will be familiar, provides an alternative, acceptable to STEP, to the Foundation Certificate. As you will surely find out, once qualified the learning does not end. In common with other professions, there is a CPD requirement. In the case of STEP, this is 35 hours yearly.

For those readers who do not immediately recognise STEP, more information is available on the Society’s website at www.step.org. STEP was founded over 10 years ago with the objective of bringing together practitioners involved in the planning, creation, management of and accounting for trusts and estates, executorships, administration and taxation. STEP has over 8000 members based in approximately 50 different jurisdictions worldwide.

The role of the trust professional is a varied and interesting one. You will be dealing with fellow professionals and clients. Some may be self-made, whilst others will have inherited wealth. Some of your clients may have famous names such as sports and film stars. You will put to good use the skills, which you have learned during the course of your professional studies and which will enable you to deliver a quality professional service. You may choose to specialise in taxation, accounting, investments or decide that you may be best suited to marketing trust services.

There may be the opportunity to travel to meet with your clients and their advisers. Alternatively in order to further your career and gain additional experience you may choose to work abroad for a period. Whatever your decision, the opportunities presented by working in trust practice are exciting, significant, sometimes memorable and forever changing.