The NZ arm of BNP Paribas Securities Services is the first in the Asia-Pacific region – and only the fourth of the French financial services giant’s 27 country operations – to switch on a new streamlined custodial system.
Following the changeover all BNP’s NZ custody clients have shifted from a global model to a “segregated local account structure” that includes a unique market identifier.
In a statement, Doug Cameron, head of BNP Paribas Securities Services New Zealand, said the move was a “real game-changer for our market”.
“It will significantly improve a number of post-trade activities we perform for our clients,” Cameron said. “Client cut-offs will improve, giving fund managers more time to analyse and react to market movements, corporate event notifications will be much faster and timeframes for account opening in overseas markets will also improve, to name just a few of the benefits. And the exciting thing is there will be more to come.”
The new custody service also removes the need to transfer physical securities as long as current tax documentation is provided, BNP says, reducing “cost and risk” of the transaction. According to BNP, the ‘unique identifier’ allows clients to implement bulk orders across multiple accounts while making the trade process simpler and more transparent.
Cameron said the fact NZ was the first country in Asia-Pacific to adopt the new custody system reflected BNP’s “commitment to the growing NZ market”.
“Our market is recognised as dynamic and fast growing where these types of initiatives are well received,” he said. “The relative size of the market also enables us to be amongst the first tranche of countries to access enhanced functionality such as this.”
The news comes on the back of a positive start to the year for BNP NZ after confirming two Wellington-based firms – Implemented Investment Solutions and Adminis – as custody clients in 2017.
BNP also appointed a new head of operations last month, securing former Trustees Executors (TE) head of registry, Jennifer Bertie, in the role.
Prior to her TE position, Bertie previously held various roles for BNP in NZ, Australia and the UK.
“We are very pleased to have Jennifer on board, she is well known and respected within the industry and will be a great asset to the team,” Cameron said.