Nominee company: Difference between revisions
Jump to navigation
Jump to search
Amwelladmin (talk | contribs) |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 1: | Line 1: | ||
A wholly-owned subsidiary of a custodian used as a nominee company to hold legal title to client investments (other than cash). This common structure in the UK custody Market was in fact endorsed by Peter Bloxham's ''[https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/271040/PU1560_SAR.pdf Final review of the Investment Bank Special Administration Regulations 2011]'' in January 2014, the third recommendation of which was: | |||
{{Box| | |||
===Use of Nominee Companies=== | |||
:3 FCA should consider encouraging firms, in appropriate cases, to use a wholly-owned subsidiary as the nominee company to hold legal title to client investments (other than cash).}} | |||
The report noted: | |||
:"... the rapid transfer of client positions to a solvent successor firm was facilitated by the fact that the failed firm held substantially all its (UK) {{cassprov|custody asset}}s in the name of a separate {{cassprov|nominee company}} {{tgag|subsidiary}}. It was possible to transfer the shares in that {{cassprov|nominee company}} as part of the transfer of client positions. The transfer of the shares in the {{cassprov|nominee company}} was sufficient to produce the result that all the client holdings registered in that nominee passed into the control of the transferee, without the need for transfers of individual holdings. I recommend that consideration be given by the FCA to encouraging this practice." | |||
{{casssnap|6.2.4}} | {{casssnap|6.2.4}} | ||
{{casssnap|nominee company}} | {{casssnap|nominee company}} | ||