Custody
Slovenska sporitelna has been providing the custody service for its clients since the year 1994. In 1999 the service was widened by the settlement of trades on international markets (Global custody). Regarding the changes in evidence of securities at the local market, Slovenska sporitelna became a member of the Central securities depository of Slovak republic and is offering services on the Slovak market as well (Local Custody).
According to § 41 of Act No 566/2001 Coll. on Securities and Investment Services (The Securities Act), custody is being provided on the contract base. Slovenska sporitelna opens an owner’s securities account and a cash account for the client. Custody services are assigned to the securities owners who have signed the Framework agreement or Custody agreement enabling provision of custody in the range described below to international and domestic institutional clients, such as commercial and pension insurance companies, asset management companies, brokers, corporate clients, municipalities as well as individuals.
SECURITIES ACCOUNT
Domestic book-entry securities are held in securities accounts maintained by a member of the Central Securities Depository of the Slovak Republic (Centrálny depozitár cenných papierov SR, a.s.). The account holder is considered to be a legal owner and beneficiary of the securities held in his securities account. Slovenská sporiteľňa acting in a capacity of local agent and CSD member will establish the securities account upon client’s request.
CASH ACCOUNT
Cash Account is activated with the first deposit. SWIFT is utilized as communication channel. No minimum balance is required. Account statement (MT950) is sent the next morning. Overdrafts are subject to individual negotiations. Interest is credited to the account at the end of the year. Interest bearing accounts, standing orders and wide range of value-added services are provided as well.
SETTLEMENT
Pre-matching takes place immediately after the receipt of client instruction (MT540-543). Transactions with missing client instructions are advised via MT578 Settlement Allegement, whilst settlement problems through MT548. Transfer instructions processed within Slovenska sporitelna systems are then matched and subsequently executed via the Bratislava Stock Exchange Electronic Trading System on T+3 basis (DVP rules are strictly followed). Free deliveries and settlements of OTC trades on T+0 (bonds) or T+1 (shares) basis are allowed. Settlement confirmations (MT544-547) are sent after 3.00 pm on effective settlement date. Transactions outstanding on expected SD are shown in the Statement of Pending Transactions.
SAFEKEEPING
Safekeeping-related activities and procedures determined by international standards fully respect valid Slovak regulations and domestic market rules and practices, thereby meeting demands and expectations of our clientele.
Book-entry securities are held in the client’s name with CSD member or CSD, while paper securities are safely deposited in Slovenska sporitelna's central vault. All securities are held outside Slovenska sporitelna's books and are segregated from those under the ownership of other clients or Slovenska sporitelna own holdings. Only limited number of authorized persons has access to client databases, records, files and documentation.
CLIENT REPORTING
A special software application developed as an integrated part of the Banking Information System - Securities module has been designed to improve transaction processing, provide prompt and clear tracking and enhance the range of account statements, confirmations and notifications. Our clients enjoy full and timely SWIFT - based reporting to cover securities transactions processing:
- Settlement Alignment;
- Settlement Status & Processing Advice;
- Settlement Confirmations;
- Statement of Pending Transactions;
- Statement of Transactions;
- Statement of Holdings;
- Corporate Action Notification;
- Corporate Action Confirmation.
INFO SERVICE
Notifications on salient events are sent through SWIFT, fax or e-mail within 2 business days after their publication. Regular Market and Corporate News covers all relevant information collected from public sources in the course of past week. In addition, CEE Macroeconomic and Fixed Income Weekly Report focuses on analyses of recent macroeconomic data, while quarterly released Country Report comments on the recent economic developments, legislature, corporate sphere, money, FX and capital markets.
CORPORATE EVENTS
All available info sources, such as relevant web sites, news agencies, press releases, Slovenska sporitelna's Research Department reports etc., are utilized with the aim to ensure timeliness, complexity and reliability of our information and reporting service and subsequent full and proper execution of shareholder or bondholder’s rights. The following belong among most frequent CA´s in the local market:
- capital income,
- redemptions,
- AGM/EGM, proxy voting,
- takeover bid,
- rights issues,
- new issues,
- stock situations.
Slovenska sporitelna's systems provide automated monitoring of forthcoming coupon and principal payments, followed by automated processing of MT564 CA Notification sent to the beneficiary 20 days prior to the event date. Capital income is credited to client cash account when actually received; successfully settled events are confirmed via MT566.
COMMUNICATION
SWIFT is our preferred means of communication. SWIFT - formatted fax messages can be used as a back-up. Owing to automated processing of selected incoming and outgoing messages, our systems are capable of high transaction volume processing. Besides a client - dedicated Customer Service officer, English speaking staff are available from 8.00 am to 5.00 pm Monday through Friday.
FEES
The safekeeping fee shall be derived from the value of Owner’s holdings as a percentage rate from the average daily value of portfolio under custody, based on nominal value of debt securities (bonds, bills, notes, and other debentures) and market value of equities and fund shares depending on particular market invoiced or collected monthly or as of quarter-end according to the agreement. If there is not a market value of equity, then purchase price is considered; if purchase price is not available then face amount is used. The fee schedule is individual resulting from the negotiation of both the client and the bank.
For further and more detailed information, see the A Guide to Slovak Custody Market.
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