Global Security Services

UniCredit Bank is a leader in the provision of custody services to both domestic and foreign financial institutions in the Czech Republic and the CEE region, and it is also a holder of permit to perform depositary tasks. For more information as to custody services, please visit: http://gss.unicreditgroup.eu/

UniCredit Bank Czech Republic and Slovakia, a.s. (UCB CZSK) performs the management and settlement of securities (so-called custody services) through its Global Security Services (GSS) section for GSS clients on the basis of contractual documentation, which entails a “Master Agreement”, “Sub-Custody Agreement”, “Service Level Agreement”, etc.

Clients communicate with UCB CZSK primarily through SWIFT messaging; however, they can also communicate through the Business Net for Securities (BNS) banking communication channel or through another channel based on their contractual agreement.

Custody services entail in particular

the management and settlement of domestic book-entry securities registered with Centrální depozitář cenných papírů/the Central Securities Depository (CDCP a.s.) or with Systém Krátkodobých Dluhopisů/the Short-Term Bond System (SKD – a trading and depository system for treasury bills run by the Czech National Bank) for local and foreign institutional investors alike;
the management and settlement of foreign book-entry securities admitted to trading on the Czech regulated market organised by Burza Cenných Papírů Praha/the Prague Stock Exchange (BCPP a.s.) and also registered with Centrální depozitář cenných papírů/the Central Securities Depository (CDCP a.s.);
the safekeeping of domestic securities in certificated form in own vault and their subsequent management and potential settlement (e.g. shares, government and corporate bonds or bills of exchange).

Management of securities entails:

the provision for mandatory corporate actions related to a client’s holding of book-entry securities, in particular payment of interest, dividends and other yields from securities for the account of the client;
the monitoring and notification of voluntary corporate actions relating to securities held by GSS clients (e.g. so-called squeeze-out of securities and the like);
the representation and voting of clients at general meetings of shareholders as instructed by clients (so-called Proxy Voting);
the management of client asset accounts in depositories and the registration and reconciliation of securities on these accounts.

Settlement of securities entails:

non-commercial (so-called Over-The-Counter or OTC) transfers of the above-mentioned securities from and to a client’s asset account registered with the respective depository (e.g. with the CDCP a.s.), exclusively as instructed by the GSS client;
the provision for financial clearing of these transactions with the CNB’s Clearing and, subsequently, on the client’s cash account held with UCB CZSK.

UniCredit Bank Czech Republic and Slovakia, a.s., is a full member of and participant in the CDCP a.s., the SKD and other local contractual securities depositories and provides servicing of its clients’ securities in strict accordance with regulatory and internally defined rules, always in the best interests of its clients.

UniCredit Bank Czech Republic and Slovakia, a.s. (UCB CZSK) performs the management and settlement of securities (so-called custody services) through its Global Security Services (GSS) section for GSS clients on the basis of the “Agreement on Custody of Securities, Book-Entry Securities, Foreign Securities and Foreign Book-Entry Securities and Settlement of Transactions in Securities”.

Custody services entail in particular

the management and settlement of foreign book-entry securities registered with foreign securities depositories (e.g. Clearstream Banking Luxembourg - CBL, Euroclear – EOC, Bank of New York Mellon – BoNYM, Bank Polska Kasa Opieki S.A. – PEKAO and the like) for local institutional investors.

Management of securities entails:

the provision for mandatory corporate actions related to a client’s holding of book-entry securities, in particular payment of interest, dividends and other yields from securities for a client’s account through the relevant foreign depository;
the notification of adopted voluntary corporate actions relating to securities held by GSS clients;
potentially required provision for voting of clients at general shareholder meetings as instructed by clients (so-called Proxy Voting) using the services of a foreign depository;
the management of client asset accounts in the depositories and books of UCB CZSK and the registration and reconciliation of securities on these accounts.

Settlement of securities entails:

non-commercial (so-called Over-The-Counter or OTC) transfers of the above-mentioned securities from and to a client’s asset account registered with the respective depository (e.g. with CBL, EOC and the like), exclusively as instructed by the GSS client;
the provision for financial clearing of these transactions on the relevant depositories’ cash accounts and, subsequently, on the client’s cash account held with UCB CZSK.

UniCredit Bank Czech Republic and Slovakia, a.s., is a client of the above-mentioned securities depositories and provides the servicing of its clients’ securities in strict accordance with regulatory and internally defined rules, always in the best interests of its clients.

Depository services

Depository services are provided to:

pension management companies, and particularly to pension funds under Act No. 426/2011 Coll. on Retirement Savings, participants funds pursuant to Act No. 427/2011 Coll. on Supplementary Pension Savings, transformed funds pursuant to Act No. 42/1994 Coll. on State-Contributory Supplementary Pension Insurance and on changes of certain acts connected with the implementation thereof, and to other funds pursuant to Act No. 240/2013 Coll. on Management Companies and Investment Funds.
management companies and investment funds pursuant to Act No. 240/2013 Coll. on Management Companies and Investment Funds.

UniCredit Bank is one of the largest depositories in the Czech Republic as regards the controlled assets of collective investment funds. Our size and standing in this segment allow us to take an active part in the formation of the market environment for depository services.

We cooperate closely with the regulator on the legislation process as well as on the process of setting the control mechanism and, in doing so, we always defend the interests of our clients.

UniCredit Bank Czech Republic and Slovakia, a.s. provides depository services under the surveillance of the Czech National Bank. It supervises the statutory and regulatory restrictions in the investment of funds in pension management companies and investment funds.

The depository services are secured in UniCredit Bank by the Depository Services section within the Global Securities Services unit falling under the Global Transaction Banking department reporting directly to the member of the Board of UniCredit Bank responsible for the Corporate, Investment and Private Banking division.