Bare Trustee Agreement
As already mentioned, the trustee only owns the legal title in a simple trust and transfers this title upon request, in accordance with the specific instructions of the beneficial owner. The mere agent would not be regarded as the exercise of a commercial activity concerning fiduciary ownership and, therefore, the trust would not be required to register under the law. Sometimes referred to as a naked fiduciary or even a simple trutee. „The term `naked agent` has been used to refer to both holders of nominal securities and active agents controlled by Settlors or beneficiaries. In neither case can it be said that the agreement necessarily implies the exclusion of the possibility of fiduciary accountability. Quite the contrary. The function of fiduciary regulation is to verify opportunism in limited access agreements. The stupidity of opportunism is clearly possible and clearly a problem for holders of nominal titles. Their formal title empowers them to use the subject`s possessions to serve their own ends. „A cash trust is a trust owned by the agent without any performance obligation, unless it is transferred to the beneficiary or beneficiary upon request. The definition of a bare, bare or simple trust assumes two things: (1) that the beneficiary is able to claim the property upon application; and (2) either the settlor never required active tasks or the active tasks were performed. The mere obligation of a mere agent encouraged the transfer, upon request and in accordance with the instructions of the beneficiary, of the legal ownership of the fiduciary assets, as provided for in the fiduciary instrument. The mere agent has no independent power, discretion or responsibility with respect to fiduciary ownership. In such cases, the beneficial owner reserves the right to control and direct the trustee in all matters related to the fiduciary patrimony. The provisions on becoming and ceasing to be registered shall not apply where the beneficial owner registers and the trust unsubscribes.
There is no transfer of ownership through an assignment or acquisition, since there is no change in legal ownership or the equity of fiduciary ownership, but only a change in who is considered to be acting with respect to ownership within the meaning of the law. The relationship between the mere trustee and the beneficial owner should be established in a written agreement often referred to as a bare trustee agreement or nominee agreement. A written agreement facilitates financing operations and the transfer of real estate with rates or exemptions from tax on land transfers. What administrative role does IIROC play in approving the simple fiduciary agreement? The approved list for fiduciary agreements can be updated and established on a monthly basis. It can be found on the IIROC website under „Dealer Member Rules / IIROC Notices“. A naked agent, also commonly referred to as a Nominee, has a registered title (ownership) of ownership for someone else and often that property is a country. The obligation of a mere agent is to transfer the legal property to the beneficial owner upon request. A mere agent cannot manage the trust`s assets in any other way unless ordered to do so by the beneficial owner. Often, a simple agent is a company with no other assets.
What documents are required for the inclusion of a fund manager in the IIROC Bare Trustee Custodial Agreement monthly list? On the other hand, where independent powers and responsibilities for the management of the property are conferred on the agent under the trust instrument, the agent is considered to be engaged in a commercial activity with respect to the deliveries related to the immovable property. This, too, would be drawn up on the basis of the confidence document. In this case, a delivery made by the agent as trustee with respect to the trust property will be a trust activity and the settlement of the GST would be made by the agent for the trust….