What does a trust company (trustee) do?

A trust company holds and administers fund assets separately from its own proprietary assets and from other assets.

It also checks whether the asset manager's management instructions violate laws and regulations, the collective investment rules or the prospectus, and if there is a violation, it must demand that the instruction be withdrawn, changed or corrected. If the asset manager does not comply within 3 business days, the trust company must report this to the Financial Services Commission and disclose it publicly.