Part 1 contained the features of the claims made by FNTC trust and in this section of the report we examine whether or not the claims made by FNTC can be sustained by the minds who direct the enterprise.
Please understand that FNTC are only being used as an example and is not being singled out or that any wrong doing is implied.
It is entirely clear from the website of FNTC that they are running a business.
That business is to configure and author contracts which benefit the clients who engage them. Those clients are the industry developers, timeshare resorts and clubs, not the consumers who buy into the timeshare service and concept.
This being the case it is those clients who they owe a duty of care (he who pays the piper plays the tune) not the consumer.
FNTC specialise in provide timeshare schemes, arrange trusts and provide facility to ensure their products are workable for their clients who instructs them.
The quality of the minds behind FNTC
The previous head of the organisation was a barrister Paul Garner Bougaard and now works for the RDO which is a support network for some of the clients of FNTC
FNTC was a founder member and its past experts head the organisation. It is clear evidence that FNTC believe that the RDO is necessary for it clients and indeed its self.
Declan Kenny now heads FNTC he is an accountant which also is an associated profession to the construction of trusts. He is supported by Philip Broomhead who is a UK Solicitor and Director of FNTC.
There can be little doubt that these two are experts, in their fields and offer a continuance of the service which was provided by the historic directors.
Noteworthy is that presently Mr Broomhead is also on the Legislative Council of the Resort Development Organisation (RDO) and whilst directing FNTC.
FNTC (UK) is entirely owned by First Names Holdings (Isle of Man) Ltd co reg No. 0056689.
This establishes that the directing minds are qualified able and competent. Furthermore it appears unsustainable to suggest that the Directing Minds of the company do not know what they are doing.
In saying this, FNTC will know that in all trusts you have basically three (arms length) parties the donators, the trustees and the beneficiaries.
The donor donates the property to another party and the trustee looks after the property for and on behalf of the beneficiaries.
In respect to some timeshare contracts the donators are generally the sellers in that they sell consumer a timeshares contract, in some cases those contracts come into existence by the minds of FNTC (the authors of the terms).
The donations ends up in a trust supervised by the very authors who wrote them namely (in this example) FNTC.
Clearly when FNTC are acting for their clients they will act in their best interest so that those Clients obtain a benefit from the commission they gave to FNTC. That benefit will be in the form of profit as prior to the engagement of FNTC the donator had a variety of trading options and they concluded that the most profitable exploitation and concept was that of FNTC proposal.
At this point the duty of care which FNTC owed to its previous client (the donator) changes to that of the beneficiaries of the trust. (Whilst engaged as a trustee of a trust those trustees cannot serve two masters). That would be a wrong and actions unbecoming of a trustee.
Whilst those assets are within the control of FNTC they owe a duty of care to the beneficiaries and not the patrons who (as explained) donated the trust certificates.
In this scenario FNTC are wearing two hats in that they wrote the contracts and petitioned the developer to use those contracts and on the other hand look after the assets which have resulted from the product they in fact created.
Assuming that FNTC created a viable set of documents which underpins a good timeshare product you would expect that that product will stand the test of time and provide those beneficiaries which longevity of enjoyment, security and protection.
Invariable those assets require maintenance and preservation so that the beneficiaries’ assets are not diminished in value, so invariably the trust companies have a mention in the clubs constitution which has a sole purpose to protect, preserve and maintain the assets for and on behalf of the beneficiaries.
I don’t believe that the above discussion is incorrect.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk