The Securities and Exchange Commission (SEC) has expanded the assets custodial services segment of the market, providing foreign and domestic investors with expanded opportunity for safety of their financial assets.
SEC increased the number of nominee service providers with the issuance of global custody license to FSDH Merchant Bank.
A nominee vehicle is an important part of the capital market infrastructure as it provides post-trading safekeeping for clients’ assets.
With the global custody licence, FSDH Merchant Bank through its FSDH Nominees, will provide premium investor services solution provider for asset managers, institutional investors, banks, insurance companies, brokers, private equity firms, non-governmental organisations (NGOs), foreign portfolio investors and high networth investors (HNIs).
The new nominee vehicle is also empowered to provide fund services, administration for SEC-regulated collective investment schemes, portfolio valuation, collateral management, escrow agency services, securities lending, cash management and compliance reporting, among others.
FSDH said the launch of the nominee service was part of the group’s plan to meet investors’ needs by covering their end-to-end transactions, further showcasing FSDH’s years of expertise and experience within the financial services sector.
Managing Director, FSDH Merchant Bank; Bukola Smith said the custody services offering will further enhance safekeeping of financial assets in Nigeria.
According to her, the new nominee vehicle will use cutting-edge technology to provide enhanced service delivery and assets servicing while proffering sophisticated solutions to customer’s banking and financial services needs.
“Our competitive pricing model and global reach will also enable us to act as sub-custodians to global custodian banks and engage directly with foreign portfolio investors and fund managers in the market and those looking to come into the country.
“With this licence, our clients will benefit from our focus on excellent pre- and post-trading services. We can offer our local and international clients superior end-to-end service experience by supporting them at every stage of the investment cycle, leveraging the capabilities within the FSDH Group and our excellent track record in the areas of investment banking, corporate banking, asset management, and wealth management,” Smith said.
She said FSDH would continue to deepen its business lines, strengthen its offerings and deliver its promise to play a key role in the success journey of our clients.
‘’As we offer a one-stop array of financial services to our customers; we are now able to deliver efficient end-to-end of their transaction life cycle and we offer years of experience and expertise within the money market, capital market, corporate and transaction banking space to do so excellently,’’ Smith said.
She added that this new phase provides an additional option of non-pension custody services through which our bank can provide higher standards of service through experienced personnel across FSDH Group.
Divisional Head, Global Markets & Prestige Banking, FSDH Merchant Bank, Hakeem Muhammed said the with the launch of the custodial service, the group will ensure an efficient custody management process and safekeeping of assets with the highest assurances of safety, efficiency, use of technology, superior service, lower turn-around-time and a direct settlement process with Euroclear Bank which ensures timely settlement.’
He added that the addition of custody services to the group’s offerings would enable it to continue to delight clients by delivering value-added services that will significantly impact the performance and profitability of existing and future clients.