HARARE – Old Mutual Custodial Services has rebranded to CABS Custodial Services (Private) Limited (CCSL) in an effort to meet international best practices that encourage custodians to operate within a banking institution.
CABS managing director Simon Hammond said the new unit will also take advantage of the efficient systems within the bank.
“While our custodial services business will take on the CABS brand name, it will continue to operate as a separate company that is regulated by the Securities and Exchange Commission,” he said.
The CCSL was born out of a de-merger with the group’s asset management company, Old Mutual Asset Managers (OMAM) in the year 2000.
Hammond said the de-merger was in recognition and acceptance of industry “best practice” whereby an asset management company cannot perform the dual role of Fund Management and Custodianship.
The unit operated as a division within the life company until it became a separate company registered as Three Anchor Investments, trading as Old Mutual Custodial Services in 2010.
“From small beginnings 16 years ago, our business has seen significant growth and marked improvement of the assets under custody. Starting with assets of around $740 million in 2010, our book has since grown to $1,445 billion worth of assets by end of May 2017,” Hammond said.
The mortgage lender’s custodial service business offers a wide range of services to local and foreign institutions and individuals trading on the Zimbabwe Stock Exchange, Alternative Platform and on the money market.
CCSL’s core offering include trustee services, electronic and physical safekeeping of assets, registration of securities, corporate actions management, income collection, reconciliations, compliance monitoring and reporting and client reporting.
SecZim chief executive Tafadzwa Chinamo, who was guest of honour at the event, said the regulator was at ease with the fact that CCSL was adequately capitalised and its risk management systems have been rated to be strong.
“Providing custody services like any other business involves risks, but I am happy to report that CABS Custodial Service takes the issue of risk management seriously through having proper and adequate operating and risk management systems as we as an effective board,” he said.