Thursday, October 12, 2006

New Custodian

Investment & Mortgages Bank aka I&M has received an authorised depository license from the capital markets authority (CMA) joining other banks such as Barclays, NBK, Stanbic, KCB and Co-op.


Ntwiga said...

Not sure what this means/implies for the market bankelele, any chance of some analysis please?

Mashatall said...

Custodian banks generally do most of the back office work for stock brokers, that is clearing and transaction settling. they are also used by investment advisors who maintain their client accounts, and only go thru the brokers when placing sale or purchase orders. they also safeguard clients accounts from manipulation from sleazy stockbrokers, who trade using clients shares sitting within their nominee accounts.Good way of protecting your account if you can go thru a custodian bank.
Most of this banks are beefing up their back office, getting ready for the day CMA will grant more stockbroking licenses. Then we will separate the boys from the men coz most brokers will clsoe shop, as they will be unable to compete with the well placed banks.

Shiroh said...


Apart from the stock broking,

They are allowed to keep securities e.g. title deeds for clients.

Ntwiga said...

Thanks people.


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