You retain beneficial ownership
The registered holder of all shares in custody is ANZ New Zealand Securities Nominees Limited ('Custodian') or an
offshore custodian appointed by the Custodian who holds them in custody on your behalf, but you remain at all times the beneficial owner of the shares held in custody for you. A
custodial trading service allows you to continue managing your portfolio, to choose when to buy or sell
shares and to receive dividend payments, but the Custodian takes care of the
administration for you.
Orders can be placed online
ANZ Securities' online custodial trading service removes the need for
share certificates because all orders are processed and settled electronically. If your shares were not
held in custody you would receive a share certificate for each "parcel" of shares that you own and
be required to submit that certificate to your New Zealand based broker when you wanted to sell.
Electronic notifications and online visibility
All contract notes and settlement notices are sent to you via email
(or post, if required) whenever you purchase or sell a parcel of shares. Likewise, your transaction history and
portfolio details are displayed and available for your review on the ANZ Securities website.
ANZ Securities will also send a statement of your custodial holdings to you every six months that also
includes a list of transactions made over the six month period.
Corporate actions are managed by ANZ Securities
ANZ Securities manages all applicable corporate actions that affect your holdings
- including dividend payments, splits, consolidations and rights issues etc.
Details of the corporate action are communicated to you and, where applicable,
are recorded in your online portfolio by ANZ Securities.
Trades that you conduct via our online custodial trading service are settled on the Settlement Date as specified in the Contract Note you will be provided and within the standard settlement period for trading on the relevant market.
Unlike our online custodial trading process, the settlement of shares traded via a share certificate can take a number of weeks as the share certificate must be posted to your New Zealand based broker who would then post it to an international share broker for processing and settlement.
Dividends can be deposited to your Online Multi-Currency Account (if established)
Dividends from custodial holdings can be automatically credited to the relevant
currency in your Online Multi-Currency Account - e.g. US Dollars, British Pounds, Euro or
Canadian Dollars. Alternatively, you can have dividend payments converted to New Zealand dollars
and paid to you via direct credit.*
Note: dividends resulting from a custodial holding cannot be reinvested in the company.
*Foreign currency charges will apply when converting dividends to New Zealand
dollars. Refer to the Client Agreement General Terms and Conditions for details.