Following their recent licensing by the Qatar Financial Markets Authority (QFMA), Qatar National Bank (QNB) and Standard Chartered (StanChart) Bank have signed a Depositary Agreement with Qatar Exchange to start Custody activities.
The agreement raises the number of custodians working in the Qatari market, including HSBC, to three.
Andre Went, Chief Executive Offier of Qatar Exchange (QE) commended this development as a major step towards increased post-trade efficiency by offering more options to the institutional clients and high net worth investors, and making services more competitive.
He noted that both Qatar National Bank and Standard Chartered will start their activities as Custodians in the next few days.
Adel Khashabi, QNB’s General Manager, Asset and Wealth Management, said, “We are pleased to receive Custody license from Qatar Financial Markets Authority and start offering Custody Services working closely with QE. Custody Services complements our investment advisory, asset management and trade execution capabilities and enhances our financial services value proposition in Qatar and beyond.”
Charles Carlson, Chief Executive of Standard Chartered Bank in Qatar, said, “We are pleased to be the one of the pioneer banks to receive a Custody License from QFMA and we are committed to do our part in developing and growing the capital markets in the country and this license is a real step in that direction.”
He also added: “We shall continue to invest in the business to meet and exceed our clients’ expectations and contribute to the Qatari market.”
Custodians are responsible for safeguarding clients’ financial assets and providing functions such as safekeeping assets (equities and bonds), arranging settlements of any purchases and sales of such securities, collecting information an income from assets such as dividends and coupons, as well as providing information on the underlying companies and their annual general meetings and corporate actions.
Increasing the number of custodians in the Qatari market is a key element of the QE strategy to enhance the services provided to local, regional and international investors.