Direct Broking FAQ

ANZ Securities will keep you informed over the next few months as we work towards the sale date.
This website will be kept updated with the latest information on the sale.
If you have any additional questions please email anzs@anzsecurities.co.nz or call 0800 805 777.

Why has ANZ Securities decided to cease providing an equity and bond trading service?

The sale is part of a strategic alliance between ANZ Bank New Zealand Limited (ANZ) and First NZ Capital Securities Limited (FNZC). This alliance allows ANZ to continue to simplify its business, while ensuring their customers can access a high-quality equity and bond trading service with FNZC. FNZC will rebrand the service as Direct Broking when the sale happens.

Who is FNZC?

FNZC was founded in 1961 and is New Zealand’s leading capital markets firm providing investment banking*, securities, wealth management, and investment management services. FNZC is NZ-owned and has a 20-year strategic alliance with Credit Suisse, which provides our clients with access to world class global research, industry expertise, global securities distribution, bank debt and underwriting capabilities. To learn more about FNZC please visit: www.fnzc.co.nz

* FNZC is not a registered New Zealand bank. FNZC is an NZX Firm.

When will I know the Sale Date?

We anticipate that the sale will complete later in 2018. It is subject to closing steps and conditions.

ANZ Securities will contact you in due course with further details about the sale, as we work towards ensuring minimal impact on your access to equity and bond markets.

Will the fees I am charged change?

Direct Broking will not change the fees you are charged for any services you are currently provided by ANZ Securities, for at least a year after completion of the acquisition.

Do I need to do anything now?

To ensure you can continue to trade securities when the sale happens, you’ll need to take a few minutes to register with Direct Broking.
You can do this by logging in to your account and following the registration steps.

How do I reset my ANZ Securities log-in and password?

If you have forgotten or locked your ANZ Securities password please call ANZS on 0800 805 777 (+64 4 499 6655 if overseas) to have it reset.

When do I need to register with Direct Broking by?

You’ll need to register by 30 September 2018 so that we have enough time to make sure everything’s in order for you to trade with Direct Broking by the time the sale happens, which is planned for later in 2018. If you missed the pre-registration deadline, please contact ANZ Securities to discuss opening a new account.

What happens if I do not register with Direct Broking by 30 September 2018?

If you do not wish to move across to FNZC, ANZ Securities will be in touch in advance of the Sale Date to outline how any funds you have on deposit in accounts managed by ANZ Securities will be returned to you.

If you do not register with Direct Broking and have securities in custody with ANZ Securities, you will need to arrange an alternate custodian. Please contact ANZ Securities on 0800 805 777 to arrange a transfer of those securities to your new custodian.

Why do I need to register for the Direct Broking service?

FNZC will provide the investment platform once the sale has happened. To enable FNZC to open your trading account from the sale date, you’ll need to complete a few steps, including accepting the FNZC terms and conditions.

Who can complete the registration for the Direct Broking service?

A signatory to your account must complete the registration process. It cannot be a person who has been permissioned by signatories solely to act as an Authorised Representative for the account. An Authorised Representative is only permitted to trade on the account and to instruct payments in an OMCA.

What do I do if I am a signatory to the account, but my name is not listed to select when I log in to register?

If you are not listed as a signatory, you can either arrange to have one of the listed signatories complete the registration process, or call ANZ Securities on 0800 805 777 and they will collect the additional information they need to enable to you complete your registration.

Why do I need to confirm my identity information?

If you opened your trading account prior to November 2012, the identity information ANZ Securities holds about you will not meet current Anti-Money Laundering and Counter Financing of Terrorism (AML) standards to allow Direct Broking to open a trading account for you.

To update ANZ Securities’ records, they will attempt to have your identity verified against reliable independent source of information using a process known as electronic verification. Examples of these independent sources of data are the NZ Companies Office and the NZTA Drivers Licence register.

What happens if you cannot electronically verify my identity information?

If ANZ Securities is not able to match your identity information against the external data sources, they will contact you to discuss other options that are available to bring their records about you up to current AML standards.

Can you send me a paper application form to register with Direct Broking?

If you would prefer to complete your Direct Broking registration using paper application forms rather than using the online portal, please call ANZ Securities on 0800 805 777 (+64 4 499 6655 if overseas) and they will arrange to send them to you.

Are all of the services provided by ANZ Securities moving to FNZC?

At the completion of the sale, the investment platform, including any associated multi-currency bank account and custody management currently offered by ANZ Securities, will be provided by FNZC and rebranded Direct Broking.

Who will notify me about Fixed Interest New Issues?

Following the completion of the sale, ANZ will continue to provide you with access to new fixed income investment opportunities.

Who will notify me about Equity New Issues?

Following the completion of the sale, FNZC will provide you with access to new equity investment opportunities.

How does this affect other banking services provided to me by ANZ?

The sale of the ANZ Securities service will have no impact on any other banking services and products you have with ANZ, including KiwiSaver and managed investment funds.

Will my deposits or any credit exposure with FNZC be guaranteed by ANZ?

No. ANZ and FNZC are entering into a strategic alliance to deliver market-leading capital market solutions for our customers. Neither ANZ, nor any member of the Australia and New Zealand Banking Group Limited stands behind or guarantees these deposits or monies. FNZC (like ANZ Securities) is required under NZX regulations to hold client monies in client funds trusted bank accounts. These client funds trust bank accounts will continue to be held with ANZ.

Is ANZ entering into an alliance with Credit Suisse?

No. ANZ is entering into a strategic alliance with FNZC. It is not establishing a formal relationship with any other entities FNZC has an existing alliance with.

What happens if I am not currently an ANZ Securities customer, but wish to open an ANZ Securities account?

New customers can continue to apply for the ANZ Securities service by completing an account opening form: https://onlinestore.anz.co.nz/get/securities.

Will clients receive interest income on balances in their call account?

FNZC may offer interest on deposits at the rate notified to you from time to time by us. The actual rate of interest paid will be subject to change over time, given it will be influenced by prevailing market conditions and benchmark interest rates such as the Reserve Bank’s Official Cash Rate.

What is the current interest rate on FNZC’s Cash Management Account?

The actual rate of interest FNZC pays clients varies based on account balances but we will match ANZ interest rates from the day the sale happens (later in 2018) so there will be no impact on clients.

Why does Direct Broking deduct a margin from interest earned on a FNZC Cash Management account?

Establishment or account fees are not charged to clients for the FNZC Cash Management account. Instead, we deduct and retain a margin which is the difference between the rate of interest we pay to you and the rate of interest we receive from time to time. This is the same approach as ANZ Securities applies for its OMCA (refer to the ANZ Securities Management Fee on page 29 of the ANZ Securities Client Agreement – General Terms and Conditions).

Will Direct Broking offer multiple currency accounts?

Yes, Direct Broking will offer multiple foreign currency accounts to make it easier for clients to invest in offshore exchanges such as the ASX. Direct Broking’s multiple currency accounts are called Cash Management Trust accounts or CMT accounts. We will offer CMT accounts for all the currencies that ANZ Securities currently offers. Note that one account is required for each currency.

When do you proposed to advise your various fees for the Direct Broking service?

We will provide you the same services you currently receive with no change to the fees on those services until at least one year after we complete the acquisition of ANZ Securities.

What stock exchanges will investors be able to trade on when the sale happens?

We will offer access to the same exchanges currently offered by ANZ Securities, namely NZX and ASX. If you currently have an ANZ Securities custody account, you can continue to invest in U.S. and U.K. shares.

Can you confirm the FNZC account is held in trust with ANZ?

Yes. All monies received from you or on your behalf will be held by FNZC in a Client Funds Account or Cash Management Trust account with ANZ. Both the Client Funds Account and the CMT account monies are held on trust on your behalf, unless and until it is disbursed to settle transactions on your behalf or otherwise distributed in accordance with your instructions.

FNZC administers monies belonging to clients in a fiduciary capacity. This is a key area of regulation under the Financial Advisers Act 2008 and the NZX Limited Participant Rules, the main purpose of which is to ensure that FNZC accounts for, and safeguards, client assets at all times. Financial Advisers Act 2008 and the NZX Limited Participant Rules dictate a high standard of custodianship and associated record keeping.

ANZ Securities has closed my trading account but I want to join Direct Broking, how can I do that?

Given we have not yet completed the acquisition of Direct Broking, in order to join Direct Broking you will need to either open an ANZ Securities account (which will automatically be transferred to Direct Broking when we complete the purchase of ANZ Securities) OR you can wait until we complete the acquisition and you can open an account directly with Direct Broking. If you would like to open an account with ANZ Securities now, please contact them on 0800 805 777.

When is the transfer date?

There is still some preparation work for us to complete in terms of the ANZ Securities technology and services. Once we are further through that work, we will be able to confirm the “go live” date for Direct Broking.

I want to start trading US/UK stocks with Direct Broking – how can I do this?

ANZ Securities does not currently offer access to U.S. and United Kingdom shares right now (except for a small group of clients with pre-existing custody accounts). So unfortunately, in the short term you will not be able to invest in U.S. or United Kingdom shares via Direct Broking. However, we are keen to offer these markets to our clients in the future and we are hoping to offer this service in 2019. We will keep our clients updated on progress.

I have completed pre-registration, will I have a different log-in when Direct Broking launches?

No – your login details in terms of client number and password for ANZ Securities will remain the same for the Direct Broking platform. The website address will change to directbroking.co.nz but the old https://anzsecurities.co.nz website will redirect to our Direct Broking platform to minimise disruption.

With the sale of ANZS to FNZC, what will happen to the US/UK portfolio that I currently have with ANZ Securities?

As a pre-existing custody account holder, you were asked as part of the pre-registration for Direct Broking whether you wished to elect to transfer your custody account from ANZ Securities to Direct Broking. If you chose to transfer your custody accounts to Direct Broking, you don’t need to do anything else as your custody account will be transferred to Direct Broking along with the rest of your portfolio and you will be able to invest as normal.

If you did not elect to transfer your ANZ Securities custody account to Direct Broking, ANZ will close that custody account and you would need to open a new custody account with Direct Broking when we start to offer that service (likely 2019).

Will the FNZC bank account be the same as the ANZ Securities account for settlements?

No – your bank account details will change. We will provide clients with their new bank account details before we complete the acquisition of ANZ Securities so that your records can be updated before Direct Broking “go live” date.

What benefits will be included in my ShareClarity account?

Direct Broking clients will have free “basic” Shareclarity membership which includes stock screens, monthly newsletters, mobile alerts, company descriptions, chat forums, and annual reports. More information about Shareclarity is available here: https://www.shareclarity.com/home.

Will I have a new Direct Broking login details?

No – your Direct Broking login and password will be the same as your current login details ANZ Securities.

Will we be able to apply stop-losses on the Australian market?

No – because ANZ Securities currently does not offer clients the option to trade using stop-loss orders for the Australian share market, we won’t be able to offer stop losses on day one. We will continue to offer clients the option of trading with stop losses for the New Zealand share market.

However, we are planning to invest in the Direct Broking investment platform and actively seeking client feedback so we hope to be able to provide clients with more choices like this in the future.

Will I still be able to see my portfolio in Sharesight?

Yes – we are working with Sharesight to ensure that future investment activity of ANZ Securities clients who use Sharesight will still be able to have their investment activity included in their Sharesight portfolio in the same way that it is currently.

Will my client (CP) number remain the same or will I get a new Direct Broking client number?

Your Direct Broking client (CP) number will remain the same as will your login details including password. The website address will change to directbroking.co.nz but you will be able to login with your current details.

I missed the deadline for pre-registering but I still want to be able to invest with Direct Broking later in the year. What can I do?

You can either open a new account with ANZ Securities that will be transferred to Direct Broking when we complete the acquisition later in the year. Or you can wait until we launch Direct Broking and open an account directly with us then.