ANZ Securities sold to FNZC

Anyone was expecting this?

ANZ Bank New Zealand Limited (ANZ) has today announced it will enter into a strategic alliance with share broking, wealth management and investment banking company First NZ Capital Securities Limited (FNZC).

As part of the alliance ANZ has agreed to sell the ANZ Securities service - which includes the platform that allows you to trade equities and bonds - to FNZC.

The sale will mean some changes for you, but both ANZ and FNZC are committed to ensuring that there is as little disruption as possible for you.

As the sale progresses, we'll keep you updated as to what is happening so you are fully informed and can make a smooth transition to the new platform.

You can continue to trade equities and bonds online as normal

You can continue to use the ANZ Securities service just as you do now until the completion of the sale. We anticipate that the sale will complete in the second half of 2018, which is subject to closing steps and conditions.

After the sale is completed, FNZC will operate the online equity and bond trading service, including any associated multi-currency bank account. The FNZC service will be called Direct Broking and will have new branding, but will offer similar features to the ANZ Securities service.

The sale of the ANZ Securities service will have no impact on any other banking services provided to you by ANZ, including KiwiSaver and managed investment funds. ANZ will continue to provide you with access to new fixed income investment opportunities.

You don't need to do anything now

We'll keep you updated over the next few months, including letting you know the date the sale will take place. In the meantime, you can continue using ANZ Securities just as you do now.

Why are we selling the ANZ Securities service?

The sale is part of a strategic alliance between ANZ and FNZC. This alliance allows ANZ to continue to simplify its business, while ensuring our customers can continue to access a high-quality equity and bond trading service.

Who is FNZC?

FNZC is a leading full service, wholly locally owned, share broking, wealth management and investment banking* firm. FNZC has been awarded INFINZ Sharebroker of the Year for 8 of the last 10 years, including 2017.

FNZC has been active under various names for more than 50 years and has a formal strategic alliance with Credit Suisse, a global financial institution, a relationship that has existed for more than 20 years. You can find out more about FNZC at www.fnzc.co.nz .

*FNZC is not a New Zealand registered bank

For more information

If you have any questions or would like more information, please feel free to contact us on 0800 805 777 or visit www.anzsecurities.co.nz.


Yours sincerely


Tim Olphert
Managing Principal
ANZ New Zealand Securities Limited


James Lee
Chief Executive Officer
First NZ Capital Securities Limited

www.anzsecurities.co.nz

That probably means I will streamline my broking needs and switch over to ASB Securities so I have a one-stop-shop for all my finances.

Shouldn't see much change from an operational viewpoint, they will have to remain competitive on brokerage, or they will lose customers to ASB(At the moment ASB are 50% dearer on a significant trade, 0.3% versus 0.2% with ANZ)

Hmmmm... -going back to the "original" name - Direct Broking , which is what it was called when I joined them. I use them and ASB to keep some things separate.

I see ASB charge $2 for a paper contract note currently, that's daylight robbery, I get all my contract notes in paper form from ANZ at no cost.

I just have to ask why you get a paper copy:confused:

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Originally Posted by Jay

I just have to ask why you get a paper copy:confused:

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I'm old school, I like physical hard copies, I've run my small business accounts without a computer for 27yrs(Just an income plus expenditure book) I do all my tax returns online however nowdays.

I didn't even get an email regarding this, reading it for the first time here

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Originally Posted by hummerh40

I didn't even get an email regarding this, reading it for the first time here

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I've only had an email in the last hour.

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Originally Posted by couta1

I'm old school, I like physical hard copies, I've run my small business accounts without a computer for 27yrs(Just an income plus expenditure book) I do all my tax returns online however nowdays.

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Print out the email, there's your hard copy, that's what I do, still costs a lot less than $2 a copy

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Originally Posted by Jay

Print out the email, there's your hard copy, that's what I do, still costs a lot less than $2 a copy

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It's costs me nothing at ANZ, I don't use ASB and this is another reason why not, besides their brokerage being 50% dearer.

As someone commented on the proposed sale on the NBR site, in this digital age, why are there only really 2 players for doing it yourself and why can't we also buy and sell other exchanges (apart from ASX) online as well, as overseas brokers are now refusing to take on new overseas clients due to AML etc.

Not sure why ASB does "copy" across the CBA platform, not exactly state of the art, but better then the current from what I have seen as Ogg point out not a lot of development/enhancements done in the last 10 years. I did ask at one stage when I had another query sometime this year and said that a refresh/upgrade was on the way sometime soon, may have been Jan/Feb 2018. Don't quote me though!

I just had a conversation with Halifax and they are looking to offer a platform for trading of shares on the NZX, they have had a lot of enquiry regarding this, would be great to get a third no frills player in the mix. Quite a few hoops to jump through though to get something up and running.

Had to smile. My first on line trading account was with Direct Broking and I have stayed ever since. I've just opened a new account pretty much only because their fees are lower than ASB. And I guess I am used to navigating their site. ANZ Sec is functional but has limitations. For example updating the different areas is flakey. My portfolio balance lags, my watchlist lags - pretty much the only way I can get close to real time is going Depth. The link between ANZ Bank and ANZ securities is pretty renous. For example i transferred money out of my ANZ account this morning - no sign of it in my OMC account yet. And the clearance times of trades takes ages (days) for the money to flow. I get the impression there are a load of people behind desks shuffling paper for every transaction.

I see nothing in the statement that hints at any improvement in customer experience. The big question for me is the structure of the trust account which will hold my trading funds

mm, the first thing that will disappear, will be the current interest rate of 1.25%, it will revert to some tiny number like 0.1% if anything.

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Originally Posted by couta1

mm, the first thing that will disappear, will be the current interest rate of 1.25%, it will revert to some tiny number like 0.1% if anything.

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Yep, as mini posted I am concerned around the structure and security of assets with this institution ,surely not same credit rating as ANZ . Will they have the ability to pay for SPP etc ??

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Originally Posted by couta1

mm, the first thing that will disappear, will be the current interest rate of 1.25%, it will revert to some tiny number like 0.1% if anything.

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That doesn't worry me. Even now its an inconsequential rate. I only have enough money in there to see me right for 1 new trade.

Less is not more. I foresee as lower call account rate and I also note there was no assurance in the press release regarding brokerage rates staying the same.
I see this in the same light as Z taking over Caltex...we're paying more.

I can't see how we don't have more options by now. DirectBroking and ASB have been the only two online brokers available for as long as I can remember. This has resulted in fees staying the same ($30) per transaction for a very basic service - pretty much for executing orders. While in Australia they have multiple options where brokerage ranges from $9.95 to $19.95, the more expensive option being via Commsec where you also get a comprehensive suite of software for live charting and news which make it worth paying more.

Reminds me of the Telecom/Vodafone duopoly before 2Degrees came in.

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Originally Posted by hummerh40

Reminds me of the Telecom/Vodafone duopoly before 2Degrees came in.

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Reminds me of the ASB/Direct Broking/Access Brokerage triopoly(?) before one of them went "away".

I have noticed in the last 2 or 3 weeks that execution on the ANZ site online service has got noticeably poorer and unreliable. You cannot trust a buy/sell order getting processed, settlement processes are taking longer etc, etc. The poor old staff are very helpful when you ring to enquire but that gives no comfort or confidence. I guess they are dumping staff already. Obvoius question is will transaction costs go up after the sale. Who wants to cater for investors who only want to execute trades and process settlements - not ANZ obviously and probably not FNZC?

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Originally Posted by littletramp

I have noticed in the last 2 or 3 weeks that execution on the ANZ site online service has got noticeably poorer and unreliable. You cannot trust a buy/sell order getting processed, settlement processes are taking longer etc, etc. The poor old staff are very helpful when you ring to enquire but that gives no comfort or confidence. I guess they are dumping staff already. Obvoius question is will transaction costs go up after the sale. Who wants to cater for investors who only want to execute trades and process settlements - not ANZ obviously and probably not FNZC?

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Agree things have deteriorated, but over a longer period than 2-3 weeks, I'd say over the last year or so in terms of order execution. As already mentioned, if transaction costs increase, they will lose customers to ASB.

maybe we will have access to FNZC research

Personally, all I can see coming is higher prices. With a bl**dy great heap of "know your customer" and "compliance" as an extra added bonus

I'm wondering if I might be better off using ANZ or Commsec in Australia to trade on the NZ market.

Being an idle b*gger, before I start looking, is there anybody who's had the same thought, but actually done something about it, and prepared to share their experience?

I did have a quick look yesterday at options as I don't want access to any "research" as it tends to be biased propaganda and just "noise" which we would be expected to pay for. It seems that the Aussie brokers are available only for Australian residents? Happy to be proven wrong on that. It looks like small NZ private investors have 2 choices to buy/sell online outside the brokers, being the ASB and the ANZ. Are we being thrown to the sharks?

Looks like the multi-currency accounts are going with the change to FNZC.

Got an email from them yesterday, have not read it though.
However, also got a mountain of paperwork from them a week or so to virtually re do the account opening forms for an existing AUD multli-currency account, AML and all that I suppose as they are changing who their ASX trades go thru. :t_down:

I tried to read the new Terms and Conditions. Decided not to complete final step until reading 31 pages of T&C which appear very one-sided plus they get an unstated margin on your Cash Management Account interest. Seems that they are not responsible for anything except gross negligence and are free to do what they seem fit. Sad to see a low-cost online facility sold to an outfit that will squeeze what they can from punters. Wonder what else is out there?? other than ASB Securities which are charging lots as it is.

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Originally Posted by Jay

Got an email from them yesterday, have not read it though.
However, also got a mountain of paperwork from them a week or so to virtually re do the account opening forms for an existing AUD multli-currency account, AML and all that I suppose as they are changing who their ASX trades go thru. :t_down:

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That was due back on the 11th May if it’s the same as my load. Hint: read the ‘memo’ which is a guide to fill out form. That will save you filling out 90% of it. Don’t skim over it and only focus on the ‘take no action’ bold type as this will have you throwing it under a pile of bills, never to be seen again...

anyone else losing the depth on ANZ?

mine looks like this:
Attachment 9670

Looks like it is back now ,I had the same problem

Have read the memo t. This is for a family trust which currently does not have any exposure on the ASX and may not do for a awhile yet. So it involves getting all trustees ID'd etc. Just a pain in the proverbial really

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Originally Posted by Jay

Have read the memo t. This is for a family trust which currently does not have any exposure on the ASX and may not do for a awhile yet. So it involves getting all trustees ID'd etc. Just a pain in the proverbial really

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Yes a right PITA. Surely all the info held by ANZ Securities/ Direct (The old one) should be available to them. Even when Direct took over the clients of Access Brokerage there was no requirement to repeat all the ID rubbish. It was seamless change at the time.

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Originally Posted by 777

Yes a right PITA. Surely all the info held by ANZ Securities/ Direct (The old one) should be available to them. Even when Direct took over the clients of Access Brokerage there was no requirement to repeat all the ID rubbish. It was seamless change at the time.

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I was involved with that process. Round about that time 2005-2006 things started getting a lot tighter regulatory wise. (Direct Broking got a "compliance officer" on board etc)I think it has got worse since then too. Cannot really blame Direct/ANZ/FNC for complying with the law as much of a pain in the ass as it is.

True blackcap, banks are the same I think.
But as 777 says, why can't we just carry on and they can update overtime, after all we didn't ask them to sell the broking side, but then again ANZ themselves may have had to do this in any event in time.

As long as New Zealand has no reliable system for proving identity, the compliance gnomes will continue to proliferate.

Ineffective, unimaginative, box-ticking at it's worst.

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Originally Posted by GTM 3442

As long as New Zealand has no reliable system for proving identity, the compliance gnomes will continue to proliferate.

Ineffective, unimaginative, box-ticking at it's worst.

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Agree. This is a ridiculous process. Took me ages to work out what info was ¨incomplete¨ for myself and the other Trustee on our family Trust. Turned out the type of driver´s licence was missing. The number of the driver´s licence was there but not the type. Doh.
What happened about that RealMe thingy ? Why isn´t everyone made to have some form of electronic ID that can be easily and quickly used, as is becoming common overseas ? Time to get into the 21st Century

This whoel ID thing is driving me nuts. I've been through it so many times in the past years there are hours if not days of my life I will never get back. Shouldn't my IRD number do?

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Originally Posted by minimoke

This whoel ID thing is driving me nuts. I've been through it so many times in the past years there are hours if not days of my life I will never get back. Shouldn't my IRD number do?

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The legal requirements FNZC has no choice but to operate within say no.

The FCNZ T&Cs mention that FCNZ will take a cut (as yet unspecified) of the interest paid on the [transferred] Cash Management Account:

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7.8.1 The rate of gross interest paid to you on money held on your behalf in the Cash Management Account(s) does not equal the interest paid to FNZC on amounts in the Cash Management Accounts. Instead, the interest paid to you on money held on your behalf in the Cash Management Accounts reflects a margin deducted and retained by FNZC from the rate of interest that is paid to FNZC by the bank as the holder of the Cash Management Account on behalf of clients (the Margin)

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I have looked at the ANZ Securities T&Cs and cannot find an equivalent fee.

Does anyone else have a concern with that arrangement?

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Originally Posted by Onion

The FCNZ T&Cs mention that FCNZ will take a cut (as yet unspecified) of the interest paid on the [transferred] Cash Management Account:



I have looked at the ANZ Securities T&Cs and cannot find an equivalent fee.

Does anyone else have a concern with that arrangement?

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Yes. Yes I do. I think it stinks.

At the moment, i have no money in any ANZaccount - I place buy orders and then pop the money into the ANZ account before settlement date.

I see that vanishing, and having no wish to have to maintain a balance in a brokerage account I will likely quit the NZX.

So, anybody know of an offshore broker who will trade New Zealand?

Quote:

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Originally Posted by Onion

The FCNZ T&Cs mention that FCNZ will take a cut (as yet unspecified) of the interest paid on the [transferred] Cash Management Account:



I have looked at the ANZ Securities T&Cs and cannot find an equivalent fee.

Does anyone else have a concern with that arrangement?

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I do know back in the day, Direct Broking took a cut as well of the total amount invested (from memory it was .25%) so I am pretty sure ANZ would be taking a cut too. Nothing new here, just hope that the FNZC cut is similar and we get a similar return.

Quote:

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Originally Posted by GTM 3442

At the moment, i have no money in any ANZaccount - I place buy orders and then pop the money into the ANZ account before settlement date.

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Without the cash in your OMCA do you pay the non-discounted fee? I.e NZ$29.90 plus 0.40%

The FAQ Do I get a discounted brokerage rate? says:

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Note: the discounted rate only applies if the required funds are available in the NZD or AUD OMCA account at the time you place your order.

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anyone else not able to place BUY orders today? Got told they are trying to fix it but can't give a timeframe
Attachment 9713

Edit: this is for ASX orders

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Originally Posted by hummerh40

anyone else not able to place BUY orders today? Got told they are trying to fix it but can't give a timeframe
Attachment 9713

Edit: this is for ASX orders

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Yes, I have the same issue. Assume it's related to changing CHESS sponsors? Haven't called up yet.

Same issue here as well. What a shambles this is. Doesn't bode well for the handover to FNZC.

Called up this morning and I'm one of the few hundred still getting processed... Should be sorted today apparently...

I have been on the phone to Nick or Jacob every day this week trying to get my orders accepted. I get the message from the ANZ S&B page that I am not registered with CHESS {despite trading regularly for years}. Apparently USB are somewhere in the middle of this, between ANZ and FNZC, and the CHESS numbers like FINs and HINs are not yet transferred. Jacob tells me that the numbers will be sent out soon. I forgot to ask him whether that would be by email or snail mail. It is a right c88k up. I have got no urgent trades but I imagine that some people will be most upset as our accounts are frozen.

On reflection, perhaps I should transfer to ASB.

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Originally Posted by Onion

Without the cash in your OMCA do you pay the non-discounted fee? I.e NZ$29.90 plus 0.40%

The FAQ Do I get a discounted brokerage rate? says:

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Yep. No discounts for me.