Trusts Explained
Trusts are regulated legal arrangements that separate legal ownership from beneficial ownership. They provide fiduciary protection, governance, and long-term planning for assets and investments.
Trust vs Nominee vs Agency
Structure
Purpose
Key Distinction
Trust
Fiduciary management of assets for beneficiaries.
Legal duties of care, loyalty, and segregation of assets.
Nominee
Holds assets on behalf of another party.
No fiduciary discretion or trustee obligations.
Agency
Acts under instructions of a principal.
Limited scope, no asset segregation or fiduciary governance.
Common Use Cases in Cambodia
- Asset protection and succession planning
- Collective investment structures
- Corporate structuring and fiduciary services
- Long-term wealth management
Risks of Informal Structures
- Limited legal protection for beneficiaries
- Regulatory non-compliance exposure
- Operational and reputational risks
- Unclear fiduciary responsibilities
Why regulated trust services matter
- Risk reduction & compliance culture
- Transparent market practices
- Protection for beneficiaries and investors