Nominee company: Difference between revisions

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-{{fullanatopen|cass|{{cassquote|6|2|4}}}}
+{{fullanat2|cass|nominee company||6.2.4|}}
+A [[nominee company]] is not a custodian per se. It is a dedicated entity which does nothing other than acting as a registered owned of shares. Under CASS a custodian cannot hold its own house positions in the same legal entity as their client’s assets.
 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:
 {{quote|
 ===Use of Nominee Companies===
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 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}} {{tag|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."
+“:... 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}} {{tag|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.”
-Yes, the {{tag|CASS}} rules really say "with respect of". And they don't say the same level responsibility ''as what''. So nice bit of drafting there, ladies and gentlemen of the European Union.
-And if you were wondering what a “nominee company” is:
-{{box|{{FCA Section nominee company}}}}
+Yes, the {{tag|CASS}} rules really say “with respect of”. And they don't say the same level responsibility ''as what''. So nice bit of drafting there, ladies and gentlemen of the {{t|European Union}}.
-====Discussion====
-Note a nominee is not a custodian per se. It is a dedicated entity which does nothing other than acting as a registered owned of shares.