Custodial Service

When you buy bonds in the over-the-counter (OTC) market, you are required to hold them in the safe keeping of a licensed custodian until they mature or you decide to sell them. CHESS, a company owned by the ASX, is one example of a custodial service provider for financial products such as shares, warrants and units in trusts. However, CHESS does not cater for OTC bonds. Licensed custodial service providers, such as FIIG, hold an electronic record of an investor’s beneficial ownership of a bond. They also provide a range of services including account administration, transaction settlements and reporting.

FIIG’s Custodial Service

FIIG’s Custodial Service saves you time and money by providing the following:

  • Transaction settlements
  • Collection and processing of payments, including coupons and maturity payments
  • Foreign exchange
  • Account administration including the processing of contract notes and corporate actions
  • Reporting, including monthly and annual statements

You can access your portfolio valuations and reports via the MyFIIG (include link to MyFIIG log in) secure on line portal.  MyFIIG also includes market data and forecasting tools to help you manage your portfolio.

An annual GS007 audit on our Custodial Service is performed by Pricewaterhouse Coopers ensuring an independent review of the service.  The GS007 audit report is available to FIIG clients on request.

Ownership of your bonds

The beneficial ownership of your bonds, held in custody with our Custodial Services, remains with you at all times. Your bonds can only be bought, sold, or otherwise dealt with in accordance with your instructions to FIIG. This means that your bonds are your assets and do not form part of the assets of FIIG or the custodial bank. Therefore, if FIIG or the custodial bank were to cease operations, your bonds are safe and remain yours.

Custody Service Fee

Up to
$500,000

0.2% pa

  
$500,000+

0.14% pa

  
$2,000,000+

0.09% pa

  
$5,000,000+

0.06% pa

The Custody Service Fee is subject to a minimum monthly fee of:

- $20 if you nominate an existing Macquarie Bank CMA or elect to establish a new FIIG Funding Account held in your FIIG account name with Macquarie Bank; or
- $30 if you do not elect to have a Macquarie Bank CMA as your FIIG Funding Account.

The Custody Service Fee is calculated daily on the value of your account holdings and charged monthly.

More information about out fees can be found in the FSG.

For more information on Corporate Bonds 

Custodial services factsheet PDF download

Download the Custodial Service brochure

Get the brochure

Talk to an expert

George Cupac -  State Manager Markets - Victoria Bianca Burt - Associate Director, Money Market Sales John Sheridan - Head of Private Clients NSW/ACT Mark Connors - State Manager Mark Mccudden - Director –NSW, ACT, QLD  Adviser Services  

Phone  Call us on 1800 01 01 81

...with offices based in Sydney, Brisbane, Melbourne and Perth