Custody II

The Custody II module is the second in a series of two modules that deal with the custody function. The 1st first topic outlines the regulatory en- vironment in which the custody function operates. The topic introduces various sections of relevant legislation and the purpose of the legislation. Principles of good governance and the role of regulatory bodies and the Registrars are also described. Nominees are introduced and the process re- lated to their approval and regulation summarised.

The 2nd topic in this module deals with straight through processing. There- after, certain systems, software, networks and projects involved in STP in South Africa and globally are introduced. The role and purpose of SWIFT is summarised and the structure of SWIFT messages are outlined.

The third and final topic of this module describes the stages of the corpo- rate action trade cycle and outlines the processing of corporate actions in South Africa under Strate. Rights offers and various dividend related and non-dividend related corporate actions are explained. Finally, terminology associated with bond events and proxy voting procedures are summarised.

Topics

  • The Regulatory Environment – STP and SWIFT
  • Corporate Actions, Income & Proxy Voting