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Dear Client As part of our commitment to provide exceptional service to our clients, we would like to inform you that we are implementing a significant administrative change to our clients’ accounts. In order to better serve you and improve our business processes, we will be migrating all accounts, on Friday 14 September, to a new administration system. The custody of your assets will move from Peregrine to SCM DMA (Pty) Limited. These changes will help us to improve our customer service to you, whilst also enabling us to continue offering new and exciting products and services. SCM DMA (PTY) Ltd. "DMA" provides the South African wealth management and stockbroking industry with the most efficient and cost-effective access to the local and global markets through their award winning trading platform. DMA has over 80 asset managers and stockbrokers currently making use of their transactional and portfolio management software to manage their client's assets across multiple exchanges and instrument classes. To read more about DMA, click here. The benefits hereof include: Improved technology – the migration enables us to offer our clients award-winning trading and investment platforms. Rest assured, SHARENET will still be your partner and your current process remains unchanged, our clients will now also be able to access their equity accounts anywhere, on intuitive mobile, tablet apps as well as online. In planning these changes, we have made every effort to minimise the disruption for our clients. The upgrade might have an impact to your trading and some of the platform functionality might be temporarily unavailable, but we have made additional resources available to handle any eventualities. We want you to be aware of these changes and ask that you read this letter carefully to help ensure the transition to our new system causes you as little disruption as possible. To continue trading on your account without any major interruption, please take careful note of the following: HOW WILL MY ACCOUNT(S) BE AFFECTED? Will there be any cost involved in the scheduled migration? NONE Will my account move? Yes, your account is scheduled to move as follows: Will I have the same username and password? Yes. Your current username and password will stay the same Will I have to download a new platform? No, you will not have to download a new platform. Will my open positions transfer? All open positions will be transferred. There is no need to close positions. Will my open orders transfer? All open orders will be cancelled and deleted. Open orders must be re-entered. What will happen to my stops and limits? All stop and limit orders will be cancelled & deleted. All stop and limit orders must be re-entered. Will my deposit and withdrawal procedures change? You may continue to give Sharenet withdrawal instructions.
Will I have to do anything? Please be assured that every effort has been made to streamline the transition. In closing, we appreciate your patience during our technology upgrade. We are confident that you will enjoy the benefits of these changes and we encourage you to watch for exciting announcements about new investment products and services coming in the near future. Giuseppe Lorusso |
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THE TRADING & INVESTMENT SPECIALIST | SCM DMA SCM DMA (PTY) Ltd. "DMA" provides the South African wealth management and stockbroking industry with the most efficient and cost effective access to the local and global markets through their award winning execution platform. DMA has over 80 asset managers and stockbrokers currently making use of their execution and portfolio management software to manage their client's assets across multiple exchanges and instrument classes. DMA is an approved platform and custodian on the following platforms:
Saxo Bank has partnered with DMA to provide the South African financial industry with cutting edge execution technology and Fintech. Saxo Bank and DMA have had a long-standing relationship resulting in DMA being Saxo's exclusive partner in sub-Saharan Africa for the distribution of their products and services.
LOCAL SAFETY OF ASSETS Cash Client funds are paid to and held in Trust at HSBC, please see attached funding instructions for local payments. All funds are paid into an account in the name of SCM DMA Trust Account. Where a Financial Institution/DMA receives money from its clients and that money is deposited in a trust account, those funds are deemed to be trust property. The FI Act provides that: "despite anything to the contrary in any law or the common law, trust property invested, kept in safe custody, controlled or administered by a financial institution or a nominee company under no circumstances forms part of the assets or funds of the financial institution or nominee company" In essence, should DMA become insolvent client monies will not form part of DMA's insolvent estate as the ownership of the client monies vests in the principal or clients themselves. Where a client of DMA directly deposits client monies in a trust account at HSBC, this will be regarded as trust monies for purposes of the FI act, accordingly the money will be regarded as trust property and will not form part of the estate of HSBC in the unlikely event that HSBC became insolvent or was placed under curatorship. Custodian of Scrip All client scrip/positions are held in safe custody with Citibank in nominee company, SCMSA Nominees. SCM DMA's custodian Citibank has opened a Segregated Depository Account structure with Strate Ltd, our local Central Securities Depository for SCMSA Nominees. SDA's have been setup to provide a safe keeping account structure for investors ahead of any insolvency proceedings being instituted against the participant. Additionally, SCM DMA's reports all securities held and the beneficial owner of those securities to Strate Ltd. the local CSD who then reconcile this with the custodian Citibank to ensure there are no irregularities in what is held in the nominee company and what is being reported as client securities to Strate. This is done every Monday morning as per our regulatory requirements. Accordingly, client securities are not then attached to the assets of either SCM DMA or Citibank and are retrievable by the client and may be moved to another participant in the event of either Citibank or SCM DMA becoming insolvent or being placed under curatorship. OFFSHORE SAFETY OF ASSETS Cash DMA uses two banking institutions in the United Kingdom. HSBC and Crowns Agent Bank. DMA is further required to house a collateral line with Saxo Bank. All client funds with HSBC and Crowns Agent are held off balance sheet. A full register of deposits, withdrawals and movements for transaction are recorded in a register along with the beneficial owner of the assets. In accordance with the South African Financial Services Conduct Authority (FSCA) and the UK Financial Conduct Authority (FCA) client money rules, these funds are held in trust separately from the Bank's and DMA's own assets and cannot be used or comingled with the assets of either DMA nor the Bank's. Transaction are settled based on settlement cycles per exchange regulation. DMA is required to post a collateral line with its prime broker of 12%. The prime broker (Saxo Bank) is a regulated bank and cannot comingle client assets with its own assets. Saxo Bank runs a transparent and defined risk management framework. Saxo Bank does not run a B-Book and has one of the most conservative risk management regimes in the market. Due care is taken to ensure the stability of the group and the safety of client assets. The Board of Directors approves various policies that establish the direction for Saxo Bank's risk management practices, such as the Board Instructions, Credit Policy, Market Risk Policy, Insurance Policy, Liquidity Policy, and Information Security Policy. The Board of Directors has further established a Board Risk committee that advises the Board of Directors on matters concerning Risk Management. Group Risk & Capital Management (GR&CM) in Saxo Bank is responsible for proactively identifying, measuring, monitoring, and reporting Saxo Bank's key risks across the Saxo Bank Group through the application of relevant models, tools, processes, and policies etc. with the aim of determining and mitigating potential losses as well as ensuring and supporting compliance with regulatory requirements. Saxo Bank is well capitalised. Capital and Liquidity management is responsible for completing Saxo Bank Group's Internal Capital Adequacy Assessment Process (ICAAP). The purpose of the ICAAP is to determine the minimum capital that the Bank should have in order to operate with the applied risk appetite. The Controlling & Reporting team controls granted limits on market risk exposures, exposure to counterparties, trading and credit lines and other activities within the scope of the given mandate from the Board of Directors. Custodian of Scrip All scrip is held with CITI Group in the name of Saxo Bank and separated in the name of the White Label Client. A full sub-register is maintained for the beneficial owner of the assets and these assets are reported live via the available platforms. Beneficial owner declarations are further required for the US market and DMA complies with FAIS and FICA legislation to ensure the correct identity of clients. This further includes the restrictions on 3rd party payments and transfers. All positions are settled daily and reconciled against the custodian. All clients must pre fund their transaction. The global custodian reconciliation is matched to all prime broking and institutional brokers via sunguard intellimatch. End of day files are then delivered to the investment manager or the white label for confirmation. The live trading platforms will always reflect a true position. Graphically the process is depicted as the following:
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Sharenet Group of Companies are authorised financial services providers. |
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