FOR those who need to make confidential investments, nominee accounts offer one of the best avenues. By using a nominee account, investments and bank accounts can be held in the name of a nominee rather than the investor. Nominee accounts are also easy to administer and efficient when it comes to buying and selling investments. The purchase or sale is undertaken by the nominee who acts on the instructions of either the buyer or his professional investment manager. Also, the nominee takes care of all the necessary procedures for executing an investment, normally at no extra cost to the investor. To simplify things, instructions can even be given to the trustee by phone or fax. ''A nominee account is a facility available to investors whereby they can conveniently buy and sell equity investments and the like using a professional administrator,'' said Mr Derek Andrew, managing director of Tyndall-FK Corporate Services. Among the main features of a nominee account is that equities, bonds, bank accounts and the like can be held by an investor in his own name, or through a nominee. ''In legal terms, the use of a nominee brings into existence a 'bare trust' where the registered holder of the investment - the nominee or trustee - is holding the shares, bank accounts and other assets on behalf of the investor,'' Mr Andrew said. The investor, meanwhile, remains the true beneficial owner and, if necessary, he can prove his ownership by producing appropriate documentation and get the nominee, or trustee, to transfer the asset into his own name. There is generally no need for the nominee to identify his client or show that he is holding the investment. Investors can ensure that their ownership is recognised by one of the following two methods. The nominee agreement will normally specify that any investment held should be designated with a specific client reference. This method is commonly used in investments in mutual funds and publicly listed shares, as well as currency deposits with banks. A specific declaration of trust will be issued by the nominee in the client's favour. This method is commonly used for shareholdings in private companies.