Custody Services
ING CB has a strong and experienced settlement team, as well as the most up-to-date custody systems and back up facilities which allow providing top-quality services as well as handling high volumes of activity and any capacity levels.
Each client is assigned with an Account Manager and a back-up Account Manager who serves as the single point of contact for that client. Flexibility in offering customized services, pro-active approach and strong control environment mark out ING CB custody services. ING CB offers to its clients both traditional and added value client tailored services.
Traditional custody services
Physical re-registration at registrars:
ING CB has its own re-registration team – a unique feature on the market, being an extension of our client oriented approach. The team currently consists of 7 professionals who are specifically entrusted with the function of communication with local registrars, including physical traveling both in Moscow and in other cities, producing necessary documentation and, if necessary, pro-actively cooperating with the registrars to ensure smooth settlement. We are fully aware of the latest registrars’ requirements and specifics, and provide our clients with assistance on preparation of documents, as well as translations and notarizations.
One of the top priority projects of ING CB is the implementation of Electronic Documents Interaction (EDI) with registrars through DCC and NSD that will appreciably reduce the risk and timing for re-registration. It is expected that when implemented, the option will allow re-registration within one hour without physical presence at the registrars.
The option of using outside parties (DCC or other transfer agents) is also available at the client’s request.
Corporate actions:
ING CB has a dedicated team - Corporate Actions and Dividends Group – for handling corporate actions, AGM/EGMs, proxy voting, collection and repatriation of dividends etc. ING CB provides its clients with corporate actions announcements, as well as available general market information from various and most reliable sources of information. Also additional cooperation with issuers/registrars is ensured regarding a particular corporate action or any other matter related to exercising shareholders’ rights. This practice tries to fill the information gap in Russia, which is one of the major risk factors for investors.
AGMs/EGMs and proxy voting:
As a significant part of handling corporate actions events, ING CB offers full-cycle AGM/EGM services, which include calling for an EGM on behalf of a client, notifications and other informational support, proxy voting services, and thorough reporting on the AGM/EGM results.
Proxy voting services are available both by personal attendance and by mail. Upon request, empowerment of client’s representative for AGM/EGM is possible.
Dividend/income collection and repatriation:
ING CB always endeavors utmost efforts in giving clients pre-advice on dividend payments, where such information is available. ING CB carries out regular check-ups with the issuers/registrars, which have announced payments. Upon the client’s request dividend claims on behalf of the client against the counterparties may be filed.
Information services:
ING CB is well known and respected for its market advisory activity being a reliable source of up-to-date market information. ING CB prepares weekly newsletters and distributes them to all interested clients free of charge. These newsletters contain the information on the market infrastructure and legal developments, political and economic news, statistical data. The separate part of newsletters is dedicated to corporate actions and dividends payments. In case of urgent news having immediate impact or being of the utmost importance for investors, Flash newsletters are issued.
Comprehensive reporting and reconciliations:
ING CB custody system is capable of producing various kinds of reports, such as: statement of holdings, completed transactions report, outstanding transactions report, portfolio valuations and customized historical reporting either in Russian or in English. Reporting may be customized as per client's wishes both in terms of types and frequency.
A separate Reconciliation unit is in charge of periodic reconciliations with registrar/settlement depositories’ positions to ensure timely resolution of any discrepancies and full order of its records, thus enhancing the protection of clients’ assets.
Added Value and Client Tailored Services
In addition to the traditional custody services, ING CB offers a number of value added services.
Despite the fact that DVP is internationally acknowledged as a traditional settlement method, due to gaps and certain vagueness of the legislation, as well as the absence of the CSD, mandatory Delivery Versus Payment arrangements do not exist in Russia (except for stock exchange trading).
In order to mitigate counterparty risks and provide clients with additional comfort during settlement of trades with Russian securities, ING CB offers the following mechanisms whereby the Bank not only performs the securities settlement but also monitors/controls the cash movement, thus allowing for significant mitigation or elimination of counterparty risks through DVP or near-DVP settlement. All DVP services offered by ING CB could be conditionally divided into classical and structured.
Structured DVP solutions offered by ING CB:
ING CB offers solutions for settlement under large-scale deals with securities (M&A, LBO, MBO) and other assets on DVP basis in RUB or foreign currencies in accordance with the requirements of the Russian currency control regulations. Tailor-made settlement schemes are elaborated for each particular deal. ING CB implements Escrow accounts (or their analogues) and irrevocable blocking of securities on the seller’s depo account for the settlement purposes. ING CB traces occurrence of the events agreed upon by the parties, which trigger simultaneous transfer of cash and securities.
Pledge transactions
ING CB offers a wide range of services related to recording of encumbrance over securities on the pledgors’ or pledgees’ custody accounts. Tailor-made conditions for blocking of the pledged securities, as well as the release and the enforcement procedures are elaborated for each particular deal. Upon the clients’ request ING CB may record encumbrances under subsequent pledges, effect additional blocking of securities in case of "margin calls" occurrence or partial release thereof, record replacement of the pledgor or the pledgee.
Comprehensive settlement solutions.
Several settlement mechanisms aimed at decrease of settlement cycle and transaction costs have been implemented with settlement depositories and major custodians on the market:
- Speedy Settlement Scheme (SSS) with NSD;
- Enhanced Speedy Settlement Scheme (ESSS) with DCC;
- Settlement bridge ING-Citi;
- Settlement bridge ING-Deutsche Bank.
Safekeeping and agency services for foreign securities, including DRs.
ING CB offers to its clients access to various international markets, including those being served by Euroclear and Clearstream, as well as Ukraine, Kazakhstan and others, providing settlement, and safekeeping of all types of international instruments.
ING CB acts as a local sub-custodian for The Bank of New York and JPMorgan Chase Bank ADR/GDR programs for Russian issuers. This allows our clients to benefit from the shortest cycles of ADR/GDR creation and cancellation as well as to obtain auxiliary services provided by ING CB in this regard.
ING CB also provides assistance with allocation of CFI codes for foreign financial instruments. By Russian legislation the CFI code on such securities is a mandatory condition for professional securities market participants (including custodians and brokers) being permitted to deal with foreign financial instruments.
Payment and settlement details of "ING BANK (EURASIA) ZAO" in Clearing systems
Tax pre-clearance/Tax reclaims
As one of its value-added services, ING CB offers its clients documentary and representation support in obtaining beneficial tax rates prescribed by Double Tax Treaties ratified by the Russian Federation for income derived from Russian securities and also assists in obtaining tax reclaims of excessively paid taxes from the budget.
Contacts of ING CB Securities Services:
Phone: +7 (495) 755-5400