Requirements for a Custodian Licence
The legislation requires that an entity satisfy the following conditions to qualify for a Custodian licence:
- The applicant is a bank or financial institution licensed under the Banking Act; is a trust company which is a subsidiary of such bank or financial institution; orin the case of any other company, has the prescribed minimum issued and paid up capital of no less than Two Hundred and Fifty Thousand Eastern Caribbean Dollars (EC$250,000.00) and the ECSRC is satisfied that the applicant has the experience necessary to enable it to conduct its business and to carry out its duties as a securities custodian.
- The applicant must have indemnity insurance coverage or a fidelity bond acceptable to the ECSRC.
- The applicant must be a company of good reputation. The directors and officers of the applicant must also be persons of good character and reputation. The directors and staff of the applicant should have the requisite education, qualifications and experience to perform the services for which the licence is required.
- The applicant must have sufficient financial resources to undertake the services for which the licence is required.
- The applicant must have premises acceptable to the ECSRC. The premises should be able to facilitate confidential interaction between the applicant and its clients, and provide for safe and confidential storage of documents.
- As part of the licensing process, physical on-site due diligence examinations of the applicant’s specified business premises may be conducted by the ECSRC. The costs of which will be borne by the applicant. Physical onsite due diligence examinations may include examinations during: 1) the application / pre-licensing phase; and 2) post licensing. The costs associated with the physical on-site due diligence examinations are separate from the fees prescribed by the Securities (Licences and Fees) Regulations.
- The ECSRC on approval of an application for a licence, shall grant a licence to the applicant on payment by the applicant of a licence fee of Four Thousand Eastern Caribbean Dollars (EC$4,000.00).
- Licences are to be renewed annually on 1 April. On application for renewal of a licence, the ECSRC, if satisfied that the applicant is a licensee of good standing, may grant the renewal on payment by the applicant of the annual renewal licence fee of Three Thousand Eastern Caribbean Dollars (EC$3,000.00).
Documents to be submitted
- A non-refundable application fee of One Thousand Eastern Caribbean Dollars (EC$1,000.00)
- Applicant’s Custodian Agreement.
- Certified copies of the applicant’s Memorandum and/or Articles of Association and/or Bylaws.
- Audited financial statements for the applicant for the last three financial years or from incorporation, whichever is shorter. If the applicant is a start-up company, provide an audited opening balance sheet and projected financial statements for at least three years.
- An organisational chart for the applicant.
- Resumes and two references for the executive management team of the applicant (the resume should provide a summary of the officer's qualifications and experience
- Business continuity plan (include details of succession plan for key officers)
- Applicant’s Custodian Procedures Manual detailing the applicant’s internal operating systems and procedures (general operations manual).
- Certified documentary evidence (Certificate of Insurance and insurance policy) that professional indemnity insurance coverage has been affected and is maintained.
Please refer to the General Applications Procedures for more information on how to apply.