What do I need to know about Direct Broking?

If you were previously a client of ANZ Securities and registered to transfer to Direct Broking, here is some information to help.

What is the difference between Direct Broking, FNZC, First NZ Capital Securities Limited and FNZ?

  • Direct Broking is the trading name or brand of First NZ Capital Securities Limited’s digital investment service for self-directed investors.
  • First NZ Capital Securities Limited (FNZC) is a leading full-service, wholly locally owned, share broking and investment banking* firm. We’ve been active under various names for more than 50 years and have a formal strategic alliance with Credit Suisse, a relationship that has existed for more than 20 years. FNZC’s new alliance with ANZ provides our clients with access to world-class global research, industry expertise, global securities distribution, bank debt and underwriting capabilities. *FNZC is not a registered bank.
  • FNZ Limited (FNZ) is FNZC`s independent custodian and it holds custody investments on behalf of our clients as a bare trustee in New Zealand. FNZ has appointed Citibank NA as sub-custodian in Australia and the rest of the world, to hold all custody investments on behalf of our clients as a bare trustee.

How do I log in?

  • To log in to your account please go to directbroking.co.nz. Please note, the ANZ Securities link (anzsecurities.co.nz) will also continue to work and redirect you to Direct Broking.
  • Your account number (CP code) will remain the same (unless you are specifically told otherwise).
  • Your password will remain the same.

Where can I find my account balances?

  • To view your balances, click on the “Account Balances” screen. Click on “My Portfolio” to see all shares, bonds and cash positions. Note that cash positions are your actual account balances. Share and bond positions will be a combination of your actual purchases plus any positions you have added manually.
  • You will also continue to receive statements that will reflect recent activity and account balances.

What is Shareclarity and what will it do for me?

  • Shareclarity is a service that provides digital real-time research on companies listed in New Zealand, Australia and Hong Kong. As part of the service with Direct Broking, each client receives free basic Shareclarity membership which provides access to stock screens, monthly newsletters, mobile alerts, company descriptions, chat forums and annual reports.
  • You can access Shareclarity directly when you are logged into your Direct Broking account. Direct Broking is working with Shareclarity to offer even better research services for self-directed investors over time.

What is a custody service and what are the benefits?

  • A custody service is when a custodian holds a client’s assets on their behalf.
  • Direct Broking’s online trading service allows you to have your shares held electronically by our custodian, FNZ. You are still the beneficial owner of the shares but the shares are held on your behalf by the custodian.  The custodial trading service removes the need for share certificates and gives you greater flexibility to invest in international shares.

What is a Cash Management Trust (CMT) account and what are the benefits?

  • CMTs act as a bank account and allow for easy access to your money while earning interest. Each Direct Broking client receives a CMT account.  The funds are held in a pooled segregated trust account at ANZ bank.
  • CMTs allow you to hold NZD and multi-currency balances on call. This will make it easier to invest in offshore shares such as those listed on the ASX.
  • Rather than sending a cheque, which can slow down the process of investing, you can fund your CMT balance to use at any time (and still earn interest on the balance).
  • The rate of interest paid to you on money held on your behalf in the cash management account(s) within your portfolio reflects a margin deducted and retained by us by way of mark-down from the rate of interest that is paid to FNZC
  • The current interest rates based on investment size are found here.

What is happening to my online multi-currency account (OMCA)?

  • If you previously had an Online Multi-Currency Account (OMCA) with ANZ, you will now have a FNZC Cash Management Trust Account (CMT) (subject to completing pre-registration with Direct Broking).
  • The names have changed but the services are effectively the same. Direct Broking offers CMT accounts for all the currencies that ANZ Securities currently offers.

What is CHESS and HIN?

  • CHESS is a computerised share sub-register system operated by the Australian Stock Exchange. CHESS requires an ASX broker to act as a sponsor. UBS Securities Australia Limited (UBS) has been appointed as Direct Broking’s ASX sponsor for this purpose.
  • The benefits of having a broker sponsor are that you can trade or sell your shares immediately. The alternative is that you cannot sell your shares unless you know your shareholder reference number (SRN) and it can take up to six weeks to get your SRN from some companies.
  • With UBS, a holder identification number (HIN) will be used for all your shareholdings. The alternative is that you are given a different SRN for each company. A single HIN is easier to remember and, if you change address, you only need to notify us rather than notifying every company that you hold shares in.

What is an SRN and where can I find it?

  • A shareholder reference number (SRN) is the identification number of your issuer sponsorship’s shares listed on the ASX. If you do not have a broker sponsor, you can trade on the ASX using your SRN.
  • You will find your SRN on most postal correspondence from the Australian registries, for example, your dividend confirmation, or proxy form. Your SRN can be found on the top right of the document.

Is my money still protected?

  • FNZC is required under NZX regulations to hold client monies in client funds trust bank accounts. 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. The Financial Advisers Act 2008 and the NZX Limited Participant Rules dictate a high standard of custodianship and associated record keeping.
  • FNZC is not a registered bank and is therefore not regulated by the Reserve Bank. The protections for your money are as prescribed by the NZX Regulations.

Where will I receive remittance advice?

  • Rather than a remittance advice for each specific trade, you can find all transactions processed through the Direct Broking website.

I still need help, who do I contact?