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S3 Gyula Bunna.ppt

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					Pension Funds
Role of the Custodian
Global Securities Services
Budapest, April 11, 2002


                           2
     Participants


 Pension Fund                                  Fund Manager X/Y


                                   Custodian

Administrator                                                Broker
                                   Supervision
1. Relationship Initiation


2. Investment Decision and Trade


3. Settlement


4. Reporting
                                                                      3
Custody Services Summary


•   Settlement
•   Safekeeping
•   Income collection
•   Proxy
•   Corporate Actions
+
•   Compliance Monitoring
•   NAV calculation




                            4
    Investment and Settlement
                                    Foreign Broker
 Fund Manager X/Y
                                     Local Broker

                                     Local CSD
    Custodian
                                    Foreign CSD
      Pension Fund, Administrator

1. Multiple Market Investment

2. Multiple Market Settlement

3. Settlement / Position Reports

4. Consolidated Daily NAV
                                                     5
Custody Services

• Safekeeping
  •   Physical at custodian
  •   Immobilised at local CSD
  •   Immobilised at foreign CSD
• Income collection
  •   Fixed Income
  •   Equities
• Proxy Voting
• Corporate Actions
  •   Offer
  •   Bonus
  •   Overstamp



                                   6
Compliance Monitoring


• Chech Republic:
  •   Pre-settlement limit monitoring
  •   Transaction validation
• Hungary:
  •   Pre-settlement limit monitoring
• Poland:
  •   Post settlement limit monitoring




                                         7
NAV Calculation


• Chech Republic: Daily calculated by FM, Custodian
checks and verifies
• Hungary: Daily (quarterly) calculated by the Custodian,
Custodian is fully liable
• Poland: Daily calculated by PF, Custodian checks and
verifies




                                                            8
Fiduciary Liability


• Chech Republic: Yes, depository has full Fiduciary
Liability
• Hungary: Yes (although not set out by law, custodian has
to act in the best interest of the fund members/unit holders)
• Poland: Yes, main role of depository is to protect interest
of the fund's members




                                                                9
Future


• Demand for more sophisticated, value added services
• Consolidation of custody business
  •   Educated staff,
  •   IT investment,
  •   Customer base,
  •   Wordlwide knowhow,
  •   International support




                                                        10

				
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posted:7/20/2013
language:English
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