Holding bonds in safe custody for our clients
FIIG is licensed by the ASIC to provide custodial services. We offer this service free to clients. The minimum investment needed to open a client custodial account is $50,000.
What are custodial services?
Custodial services are when a company (licensed by ASIC to do so) holds its clients’ assets in safe custody. This arrangement is similar to the way that investors in shares use a broker, and that broker holds the shares in a HIN account. When you buy bonds, the bonds are held on your behalf in a custodial account. Your bonds are held until maturity or until you sell them.
Why do I need a custodian?
To buy bonds through FIIG you are required to have custody arrangements in place. FIIG offers it’s clients a free custodial service. Or, you can make independent custody arrangements.
Independent assurance report on FIIG's custody service
On an annual basis FIIG engage PwC to prepare an assurance report on internal controls relating to FIIG's custody service. This report is intended to provide information and assurance for FIIG clients from an external source about FIIG’s controls and systems that affect administration and processing of transactions.
A copy of the GS007 Type II Audit Report on Controls over Custody, as at 30 June 2013 can be provided upon request.
How does the FIIG Custodial Service work?
- You open a custody account with FIIG
- Assets are held in safe custody in FIIG’s DirectBonds Custody Account with the custodian bank (JPMorgan)
- Coupons (interest payments) and maturities are paid to your bank account
- Bonds are held until maturity or until you sell them
- Ownership of your bonds remains with you (more on ownership below)
Ownership of your bonds
The beneficial ownership of your bonds, held in safe custody using FIIG’s 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 at all times 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.
Email us or call 1800 01 01 81
Request FIIG's GS007 report