Fiduciary deposit is a deposit placed with an overseas bank in accordance with your request on behalf of Macte Invest™, as your agent. In this case, you contribute your assets and carry the credit risk of financial institution in which the fiduciary deposit is placed.
- Advantageous rates. We use our long-term relationships with banks in many countries in order to get the best rates for our customers.
- Impaired risk. We can offer you the opportunity of fiduciary deposits placed with leading regional and global banks, thus, diversifying your risks.
- Confidentiality and safety. Fiduciary transactions are carried out on behalf of the broker, a client's name does not appear in the final deal.
- Efficient and flexible administration. Your broker is responsible for paperwork. No travel is needed.
How does it work?
After placing a fiduciary deposit with intermediation of Macte Invest™, the client receives interest payments on the deposit while retaining confidentiality. At expiration client’s initial deposit together with interest is credited to the client's account. Also there are possibilities for agreements that enable fund withdrawal and addition to an account at any time without penalties (terms are negotiated individually).
For a fiduciary transaction you need to open an account, sign the agreement for placing a fiduciary deposit, have necessary funds and documents confirming the source of funds. Please, contact Macte Invest™ for more information about the advantages of this offer.
The client is obliged to assess the following most common risks in the implementation of financial investments:
Market risk is the risk of losses related to changes in exchange rates, interest rates and other factors. Market risk can be divided into:
- Foreign exchange risk (also known as FX risk, exchange rate risk or currency risk) – the probability that the client may incur losses as a result of of fluctuations in exchange rates involved in the transaction;
- Price risk – the probability that the client may incur losses as a result of fluctuations in market prices involved in the transaction of financial instruments;
- Risk of interest rate volatility – the probability that the client may incur losses due to fluctuations in money markets resulting in changes in interest rates.
Liquidity risk – the probability of losses caused by insufficient market liquidity as a result of which the sale or purchase of assets is difficult or impossible.
Compliance risk (legal risk ) – the risk of losses associated with changes in current government legislation or the introduction of new legislative acts which may create additional costs or reduce the profitability of investments (including tax risk).
Credit risk – the risk of losses in the case if a partner (including a bank) which is involved in the transaction cannot fulfill or refuse to fulfill obligations in accordance with the terms of the relevant agreement. In the event of the bank insolvency, the claims of holders of fiduciary deposits are satisfied after satisfaction of all requirements of individuals as well as other requirements specified in the legislation of the relevant country (if there are any) on an equal basis with other creditors and before satisfaction of the requirements of shareholders.
Operational risk – the risk of a change in value caused by the fact that actual losses, incurred for inadequate or failed internal processes, people and systems or from other external events, differ from the expected losses.
Country risk (political and economic) – the risk of losses arising from possible changes in the business environment that may adversely affect operating profits or the value of assets in the country.
Technical risk – the risk that may occur due to interruption of communication and/ or trading platforms, errors, limited internet access or other interruptions.
Counterparty risk – the risk of business partners' (including a broker's) inability to properly fulfil their obligations, thus, causing losses for a customer.