By Peter Egwuatu
UBA Global InvestorÂ Services (GIS) the custodian arm of the United Bank for Africa (UBA) Plc, has been appointed byÂ the Central Bank of Nigeria (CBN) as a custodian of money marketÂ and other fixed income securities.
According to a statement by the bank, â€œ This appointment by the financial regulatory institution,Â is sequel to aÂ satisfactory due-diligence inspection and other processes on theÂ UBA Global Investor Services.â€
The Nigerian FGN Treasury bill and other Money Market Instruments is a market of at least N3 trillion in size. TheseÂ assets are to be de-materialized and held by CBN appointed Custodians.
The appointment of the custodians by the apex bank, according to Mrs Toyin Sanni, CEO Global Investor Services, isÂ to ensure that the country money market structure and processes conform to global standards of best practices andÂ transparency with respect to the holding and servicing of Treasury bill and other money market/fixed incomeÂ securities currently held in the CBN accounts of banks and reflected on their balance sheets.
Accordingly, from the take-off of the new custodians, all such assets would be dematerialized and theÂ non-proprietary ones would have to be held by approved custodian like UBA GIS / Nominees.
â€˜â€˜The appointment of UBA GIS underscores the confidence UBA enjoys in the custody arena, which also supports theÂ Bankâ€™sÂ wider aspiration to be a recognized and respected player in the global financial sector,â€™â€™. Sanni said.
UBA Global Investor Services provides core and value added domestic services to global custodians and institutionalÂ investorsÂ in respect of investments in Nigeria and West Africa Economic Union (WAEMU) region comprisingÂ eightÂ Francophone West African Countries.
Its marketÂ leadingÂ position and growingÂ international statusÂ is exemplified by the recent appointmentÂ by theÂ Bank of New York MellonÂ (BNYM), the worlds largestÂ Global Custodian with over 20 TrillionÂ USD in CustodialÂ Assets, as a sub- Custodian in Nigeria for its Depository receipts Programmes (â€˜DRsâ€).
UBA Global Investor Services (GIS) was the 2008 winner of the prestigious Money Market Innovation award, thusÂ becoming the first and only West African Custodian to have received theÂ Â coveted award.