FNZC have entered into a formal strategic alliance with ANZ. As part of that alliance, FNZC has agreed to purchase the online trading platform known as ANZ Securities.
On completion of the transaction, the platform will be operated by FNZC and renamed Direct Broking.
The strategic alliance will see ANZ and FNZC combining their relative strengths, to provide enhanced customer focused access to capital markets.
It enables ANZ to simplify its business, while ensuring its clients have access to online trading, and provides FNZC entry into a new market segment.
Today’s announcement is the beginning of FNZC’s investment into the Direct Wealth market, an area we are excited to be entering. The business will be headed by recent hire Fiona Mackenzie, and in time will see considerable investment.
Direct Broking’s online trading capability will be enhanced, providing investors with access to research, IPOs, new products and access to FNZC’s market leading liquidity.
FNZC is committed to providing New Zealanders broader access to the capital markets. Our ultimate goal is to help New Zealand’s capital markets develop into a vibrant marketplace.
The addition of Direct Broking demonstrates FNZC’s commitment to invest in, and enhance the FNZC customer experience.
The transaction is expected to complete in September 2018. The period between now and completion is a transitional period during which FNZC and ANZ will work toward the transfer of the business and the online trading platform.
Pending completion, existing ANZ Securities clients will continue to have access to the online trading platform. It will be status quo for FNZC clients with respect to the services they receive.
Following completion, the Direct Broking online trading platform will be accessible by both FNZC clients and ANZ clients that have elected to transfer to FNZC. If any ANZ Securities clients have questions in respect of the transition, they should contact ANZ Securities on 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
When will I know the Sale Date?
We anticipate that the sale will complete in September 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, until at least September 2019.
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 June 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 September 2018.
What happens if I do not register with Direct Broking by 30 June 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 share and bond trading service 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 online equity and bond trading service, including any associated multi-currency bank account and custody management currently offered by ANZ Securities will be provided by FNZC.
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 trust 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.
Where do I go if I need more information?
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 firstname.lastname@example.org or call 0800 805 777.
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 (targeting September 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 will you announce your 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 September 2019.
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.
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.