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CBS Custodial ArrangementsDealing in equities at CBS.
CBS operates in a "custodial environment" for equity dealing. The main reason we do this is that our clients wish to operate in a global market. By utilizing a custodial service, which comes free of charge, our clients have the ability to trade in most equity markets around the world and for them to clear in the one account. Economies of scale are achieved as a result of this. In Australia custodial accounts for individual dealing are not customary with the HIN environment being unique to Australia.
Operating under a custodial relationships has its benefits and negatives and this has to do with corporate actions. Most corporate actions that occur to equities are pushed through to the client however it is import to note that share purchase plans are not.
What is custody?
Custody is simply the safekeeping of assets - the actual securities and records of assets such as shares or bonds - by an independent third party organisation, or 'custodian'. Custodians don't own the assets, nor do they decide which assets are bought or sold; they simply hold them securely for their beneficial owners. Who are ASCA Members?
ANZ Custodian Services The latest news on CBS Custodial accounts click here.
If you require more information then feel free to call.
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