Ping An Annuity trustee management

As there are different trustees, corporate annuity trust models can be divided into two kinds: council based trustee model and corporated based trustee model. Based on self condition, the enterprise can choose one which fits.

Items to
be compared
Trustee model
Council based trustee model
Corporated body based trustee model
Framework, staffing and cost of the enterprise The enterprise needs to establish standing body, to employ experts, who have experience in strategic asset allocation, investment risk management, account management and trusteeship, to set down asset allocation strategy, and to exercise the function of management and supervision of investment managers, account managers and trustors. The trustee management shall be done by corporated body agents, and the enterprises don’t establish standing body or employ any professionals. The enterprises can establish annuity management council.
Legal liabilities The council assumes the joint and several liabilities of annuity trust loss caused by the wrongdoings of managers, and are responsible for the pursuit if recovery; council based trustee model is a kind of natural person based trustee model, which is inadequate in compensation. Therefore, the council needs to set down strict authorization method and decision-making mechanism. Because if one director of the council does something wrong and cause a loss, other directors may need to take joint liabilities. Trustees assume the joint and several liabilities of annuity trust loss caused by the wrongdoings of investment managers, account managers and trustors, and are responsible for the pursuit of recovery.
Proposed establishing cycle Relatively long (more than 6 months) Relatively small (less than 2 months)
Operation in business links No professionals, and it is difficult to operate including managers bidding, coordination, adjustment to investment strategies and supervision running. They have experienced professionals and particular posts in corporate annuity trusts.
Daily trustee management It is hard to supervise in time, the risk is rather high. Strict in annuity management system supervision and risk control.
Regulator’s inspection and employee consultancy With no supervision data and system, so that can’t provide management report. Poor in timeliness, and hard to meet the need of the employees to provide consultation services. Systematic supervision and analysis report can be provided with immediate timeliness. And consultation services can also be provided for the employees with immediate timeliness.