Fiduciary Transactions

Running a business, you know that constant investments are required for successful development.

While credit resources are limited, looking for alternative sources of financing or restructuring debts of one’s own or related business becomes a highly important issue. Savings often are used as a source of such financing, and they need to be invested as efficiently as possible. One of the safest ways for investing your own funds in business is using a fiduciary transaction.

By such transaction we mean an agreement on managing your funds pursuing your interests and following your instructions. A fiduciary transaction enables funds accrued in foreign companies’ accounts to be used for personal needs or for business financing. Each transaction is a tailored solution for the particular customer.

Fiduciary transactions provide a number of advantages, as compared with direct investments:

  • protection of your assets from third-party claims;
  • transaction confidentiality and safety, since the bank acts as the party to the transaction.

In fiduciary transactions, we act as your professional manager, using our experience and attracting all required resources to pursue your interests.

For execution of fiduciary transactions the following requirements apply:

  • the bank’s customers only may participate in the transaction;
  • documents evidencing lawful source of funds to be managed should be submitted.

Contact your private banker to receive more information
about fiduciary transactions.

  • Secure investment in the company's development

    Our client planned opening a business in a neighboring country. He appointed his nephew as the head of this new business.
    • The client was trustful to his relative but at the same time he understood that the family ties played against him in terms of control and discipline. Moreover, the country was known for its specific risks.

      The money for the new business development can be invested in different ways, but our client has chosen a fiduciary contract as the most rational option. Thus, funds for business development were sent as a bank loan with the credit rate fixed by the client.

    • Credit obligations and strict repayment schedule disciplined our client’s nephew. At the same time credit interests reduced the borrower's income tax base. We provided a competent legal performance of the transaction, and now we’re regularly monitoring the execution of payments.

    Andrejs Jermoņins

    Head of Private Banking Department South