Clearing, Settlement and Custody

The main regulator of the securities industry is the Financial Services

Authority and the segregation of a client’s assets from those of firm is

a main part of the regulation. For securities that can be registered, the

name of the investor is shown on the face of the certificate and

reflected on the issuing company’s register of shareholders. Private

investors who do not use the services of a custodian for safekeeping

purposes may have their holdings registered in their own names.

While this has the advantage that the beneficial owner can be readily

identifiable (i.e. name on register), it does cause administrative

problems for custodians who are appointed ...