The country’s leading bank by deposits, CBZ Bank Limited is set to increase custodial transaction fees on retail clients next month.
BY BUSINESS REPORTER
In a May 8, 2017 letter to stockbrokers, CBZ said effective June 1, it would separate corporates from individuals on transaction charges. Before the new changes, the charges were similar for individuals and institutional investors.
“We write to inform all retail clients who have mandated you to trade on their behalf, on our intention to increase transaction fees (Central Securities Depository fees) effective June 1 2017,” CBZ Bank said in a letter jointly signed by Christina Tapesana (senior manager) and Paul Chimudzi (deputy division chief).
Individual trades below $5 000 will attract a fee of $2,50 per deal. Individual trades above $5 000 will attract a fee of 0,1% of value with a minimum of $10. Institutional investors (corporates) face a fee of 0,1% of value with a minimum of $20.
CBZ Custodial Services provides safe custody of investor, prized assets such as, bonds, share certificates, title deeds, educational certificates, wills and any other high valued documents as required by its clients.
It also ensures the beneficial owner model is adopted in accordance with the Security Exchange Commission of Zimbabwe regulations by ensuring legal registration of securities in the name of the investors after receiving instructions from the asset managers and clients.
The custodian settles all trade transactions for clients upon receipt of instructions from investors.
Other companies that provide custodial services include FBC Bank, Stanbic Bank Zimbabwe, Standard Chartered Bank, Steward Bank and Three Anchor Investment trading as Old Mutual Custodial Services.
Meanwhile, the Zimbabwe Stock Exchange’s industrial index opened the week higher yesterday at 147,52 points after gaining 0,72 points (0,49%) aided by trades in three counters Econet, First Mutual Holdings and CFI Holdings.
According to data from the bourse, Econet gained $0,0095 to close at $0,2100, First Mutual Holdings added $0,0038 to $0,0800 while CFI Holdings increased by $0,0006 to trade at $0,1266.