Trustees Executors (TE) has expanded its custodial capabilities to include individuals after joining the NZX clearing system as a depository participant in a move designed to support a “key client”.
Ryan Bessemer, TE chief, said previously the business only provided corporate custody with the NZX clearing accreditation opening up new options for clients offering direct equities trading for individuals.
“Now we can offer custody for individuals as well,” Bessemer said.
In a release last week, TE says the NZX depositary participant credentials would help it support “a key strategic client via their supervisory and custodial services”.
It is understood that the ‘key client’ is the Sharesies KiwiSaver scheme, which uses TE as supervisor and custodian.
Sharesies is gearing up to add a direct equities component to its KiwiSaver product after establishing the scheme late last year with a suite of diversified strategies managed by Smartshares, Pie Funds and Pathfinder.
The Wellington-headquartered platform has made substantial staff cuts (reportedly about 50 out of a workforce approaching 200) and introduced a new fee schedule this year as a slump in share-trading activity hit revenue.
While Sharesies is the likely first cab off the rank for the enhanced TE custody, the service may have wider applications.
Bessemer said adviser-focused wrap accounts that offer direct shares, for instance, could also benefit from the new TE status as a NZX Clearing depository participant.
However, he said the new custody service would not extend to the TE joint-venture investment platform, Flint Wealth, for now.
Flint, which also features Harbour Asset Management and ResearchIP as shareholders, currently offers only managed funds but it may add direct equities in the future, Bessemer said.
Excluding TE, NZX Clearing counts 17 clearing or depositary participants covering broking firms, platforms (FNZ and Wealth Technologies) and other specialist providers.
Depositary participants, as opposed to clearing clients, can use “the functionality of the Depository but cannot clear or settle any on-market trades”, the NZX says.
Felicity Gibson, NZX market operations general manager, said the addition of TE as a participant would “continue to improve efficiency in the post-trade market in New Zealand”.