Corporate agent is a company that offers financial services to other corporations or governments. It can provide e.g. payment of dividends or interest, stock trading, check clearing, tax collection. Usually banks provide additional services to corporations and thus work as corporate agents. This helps them to find additional sources of revenue.
The corporate agent acts as trustee on behalf of another entity, therefore it has to be a trust company. However it it worth noting that trust companies often provide services to individuals, while corporate agent cooperates with corporations only.
The corporate agent represents multiple corporations, therefore it is a large player on the market. Thanks to this, it may have access to the most advanced technologies on the financial market, that are not available to single company. It can also employ more specialists with extensive knowledge about markets, which gives the customers additional value.
- Sponsler, T. H. (1978). Jurisdiction over the Coporate Agent: The Fiduciary Shield. Wash. & Lee L. Rev., 35, 349
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