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1.0 Background

CBZ Custodial Services is a division embedded within CBZ Bank is regulated by the Securities Exchange Commission of Zimbabwe (SECZ) and was established in terms of the Securities Act (Chapter 24:25). The division is located at Ground Floor Fanum House, 57 Samora Machel Avenue, Harare. CBZ Custodial Services offers a wide range of services to institutions and individuals trading on the Zimbabwe Stock Exchange (ZSE) and on the Money Market.

Our client base includes:

  • Individuals
  • Pension Funds
  • Private Investors
  • Unit Trust
  • Insurance and Assurance Companies
  • Asset Managers
  • Corporate Investors

2.0 Services Offered

Our custody service offers innovative service delivery, competency and flexibility whilst adhering to principles of integrity and transparency aimed at achieving customer satisfaction. Our Service offering includes:

  • Safekeeping of Investors Assets
  • Registration of Securities
  • Trade Processing and Settlement
  • Corporate Actions
  • Income Collection
  • Proxy Voting Services
  • Independent Reconciliatory Role
  • Compliance Monitoring and Reporting
  • Client Reporting
  • Dematerialisation of Securities

2.1 Physical Safe Keeping of Investor Assets

CBZ Custodial Services provides safe custody of investor prized assets such as, bonds, share certificates, title deeds, educational certificates, wills and any other high valued documents as required by our clients. The securities and documents are kept in a vault under dual custodianship which is under 24 hour surveillance through CCTV. The place is manned by highly trained security guards who provide 24hr service a day for maximum security.

2.2 Registration of Securities

CBZ Custodial Services ensures the beneficial owner model is adopted in accordance with the new SECZ regulations by ensuring legal registration of securities in the name of the investors after receiving instructions from the Asset Managers and clients.

2.3 Trade Processing and Settlement

CBZ Custodial Services settles all trade transactions for clients upon receipt of instructions from investors and processing takes place in a secure and conducive environment. Pre-matching, confirmation and due diligence with the parties in the investment cycle are vital components of our settlement process.

2.4 Corporate Actions Administration

CBZ Custodial Services market surveillance keeps up to date with forthcoming market and corporate events for efficient service delivery. We pre advise the Asset Manager all events, giving the exact dates which clients are eligible and recommended action.

Some of the corporate events that are under our surveillance include the following:

  • Cash Dividends
  • Bonus Issues
  • Mergers/Takeovers
  • Scrip Dividend Options
  • Call Bonds
  • Spin Offs
  • Share Consolidations
  • Share splits
  • Rights Issues

2.5 Income Collection

CBZ Custodial Services will on behalf of its clients promptly collect dividends on equity securities, interest on bonds and cash equivalent.

2.6 Proxy Voting Service

CBZ Custodial Services will on behalf of our Investors provide proxy voting services for all listed companies on the stock exchange.

2.7 Independent Reconciliatory Role

CBZ Custodial Services provides an independent reconciliatory role to clients. Reconciliations of investors’ portfolio are done on daily / weekly / monthly on behalf of the client and also upon request by clients.

2.8 Compliance Monitoring and Reporting

CBZ Custodial Services ensures compliance of the funds with the statutes that govern the operation of the funds under its custody. The existing CBZ group structures ensure that Custodial Services operations are compliant with the relevant statutes. Our investors are furnished with regular updates on the compliance status of their funds.

2.9 Client Reporting

CBZ Custodial Services provides comprehensive reporting as per the investors’ needs. The following are examples of the reports which customers can request from the unit:

  • DEPO-X CSD Holding Statement
  • Monthly statement of securities transactions
  • Month-end valuation reports
  • Annual valuation client portfolio reports
  • Quarterly or bi-annual trustees meetings
  • Quarterly newsletter
  • Any other reports as requested by the client

3.0 Administration System

CBZ Custodial Services invested in an efficient ICT system called GS CUSTODIAL which is a locally developed system by GEE SOFT systems, a regional company. The module is integrated into the CBZ BANK’s core banking system FLEXCUBE. The system is equipped with the following functionality in four modules namely Equities, Money Market, Unit Trust and Property.

4.0 Fee Structure

CUSTODIAL SERVICES FEES 2015

INDIVIDUAL AND COMPANIES

  • Up to 0.4 Million			16.67 basis points (0.167%) per annum
  • Above 0.4 Million to 6 Million		12.50 basis points (0.125%) per annum
  • Above 6 Million to 15 Million		12.00 basis points (0.120%) per annum
  • Above 15 Million to 24 Million		9.00 basis points (0.09%) per annum
  • Above 24 Million			7.50 basis points (0.075%) per annum

Minimum of US$10.00 per month (Individuals)
Minimum of US$75.00 per month (Companies)

PENSION FUNDS

  • Up to 1 Million				12.50 basis points (0.125%) per annum
  • Above 1 Million to 6 million		11.00 basis points (0.11%) per annum
  • Above 6 Million to 24 million		9.00 basis points (0.09%) per annum
  • Above 24 million			6.67 basis points (0.0667%) per annum

Minimum of US$75.00 per month
Transaction fee – US$2.50 per transaction

5.0 Benefits to our Clients

CBZ Custodial Services is a client-centred custodian dedicated to satisfying customer needs by being responsive, professional, efficient and reliable. The core custodial services benefits that are enjoyed by our clients include:

  • Integrity
  • Respect
  • Customer Focus
  • Accountability
  • Governance Conscious
  • Innovation

CBZ Custodial Services is a division embedded in the Bank which is part of the diversified CBZ group that enjoys the following synergies which are beneficial to our investors:

  • The geographic spread of CBZ Bank (62 branches) promotes accessibility to our investors in Zimbabwe.
  • A platform has now been created for product development and innovation, which means finding more ways to make investing an even more enjoyable experience for our clients.
  • Clients are able to have all their financial services needs addressed under one CBZ Model.
  • CBZ Bank is a settlement bank for CSD and that provides convenient settlement of transactions at lower costs.

6.0 Service Level Agreement

CBZ Custodial Services and the investor will sign a Service Level Agreement to formalise the relationship before take-on of the assets with Asset managers and also Custodial mandates are signed with other individual/corporate clients.

7.0 Contact Details

Physical Address:
Ground Floor, Fanum House
57 Samora Machel Avenue
Harare

Telephone: 748050
Email: [email protected]
Website: www.cbz.co.zw

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