What Makes Us Different?

What is our ownership structure?

Craigs Investment Partners officially bought back the 50% equity stake in the company previously held by The Royal Bank of Scotland Group (RBS) on 1 April 2009. This restored full ownership of the business back into the hands of approximately 160 senior and former employees of Craigs Investment Partners, and coincides with Craigs Investment Partners marking 25 years in the investment advisory and investment management industry.

In addition Craigs Investment Partners expanded into wholesale services. This saw Craigs Investment Partners take over the services previously undertaken by Royal Bank of Scotland (ABN AMRO Group) in New Zealand, including Institutional Equities, Debt and Equity Capital Markets, Research and Corporate Finance.

Craigs Investment Partners operates 3 independent divisions:

• Private Wealth Services – advising private clients
• Institutional Equities
• Investment Banking

The expansion into wholesale resulted in the addition of approximately 25 new employees within wholesale, across both the Auckland and Wellington offices.

Read our History

What this means for clients and staff of Craigs Investment Partners?

There is no change to the operations of the Craigs Investment Partners business, the people leading the business or those advising our clients. We will be using exactly the same systems and compliance processes built up over the last eight years under the 50/50 JV structure with ABN AMRO.

Does this impact the security of the Cash Management Account or Custodial Services Limited?

The security of Cash Management and Custodial Services is retained under the new ownership structure.  Please click on the links below to read further.

Cash Management Trust Limited
Custodial Services Limited

What are the benefits of investing through an NZX Firm?

The New Zealand Stock Exchange (NZX) operates its market within a regulatory framework designed to maximise transparency and they continually monitor the activity of market participants, to ensure strict compliance regulation are upheld. There are only approximately fifteen full trading and advising NZX Participant Firms in New Zealand, who operate within this framework.

Craigs Investment Partners has accreditations for both:

• NZX Trading & Advising
• NZX Delivery and Settlement

As an NZX Participant, our business and our NZX qualified investment advisors operate in accordance with the rules and regulations of the NZX. There is also strict criterion regarding the handling of client’s assets (both funds and securities), which are held in a trustee capacity only, and therefore protect client assets. 

Client Funds Account

As an NZX Market participant, we are required to hold client funds bank accounts and client assets in a ‘trustee’ capacity.

The moneys held by Craigs Investment Partners (as an NZX firm), on behalf of clients must be separate and not used for any trades or business by the market participant. We must record movements of transactions and reconciliation of accounts and provide a report to the NZX daily. Moneys paid and received on clients behalf move directly to and from this account.

Client assets are held in either:

• Client funds bank account – money held on behalf of clients
• Transfer account – securities held on behalf of clients

These total client assets held must exceed ‘outstanding obligations’ to those clients at all times, and are held in a fiduciary/trustee capacity.  

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Craigs Investment Partners Custodial Service

Custodial Services provides safe custody of all negotiable financial instruments.

Clients using Craigs Investment Partners Custodial Service can do so with confidence that their investments are secured and protected as they are held in a Bare Trustee Capacity. You remain the beneficial owner of the securities and The Custodian holds securities on your behalf and deals with securities only on instructions from you.

The security, systems and processes of Craigs Investment Partners Custodial Services Limited are unchanged following the buy back of the 50% equity stake previously held by Royal Bank of Scotland (previously ABN AMRO Group).

Professional Indemnity Insurance

Both Craigs Investment Partners and The Custodian carry professional indemnity insurance for the protection of their clients.

Security is further extended by our internal systems and statutory audit processes. Craigs Investment Partners and Custodial Services are audited by NZX (New Zealand Exchange), and KPMG (the accounting firm).

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Craigs Investment Partners Cash Management Trust Limited

Craigs Investment Partners Cash Management Trust Limited was approved under the Retail Deposit Guarantee Scheme (Crown Guarantee) on 25 November 2008. The guarantee will, subject to its terms, cover all existing and new debt securities (including deposits) for the period from 12 October 2008 until 12 October 2010.

Under the Crown Guarantee, debt securities held by New Zealand tax residents or New Zealand citizens, other than financial institutions, are covered up to a maximum of $1million for any one depositor.

The Crown Guarantee covers deposits denominated in both New Zealand dollars and foreign currencies. The amount guaranteed will be the foreign currency amount, not the New Zealand dollar equivalent at any point in time. The Crown Guarantee covers both principal amount of the deposit and interest owed. Bare trusts (where providers of trustee and nominee services hold funds on behalf of other persons and have no discretion and no beneficial interest), such as Custodial Services Limited, will be covered by the Crown Guarantee. The change of ownership of Craigs Investment Partners has no impact on the Crown Guarantee.

Where and how the funds are invested?
All client deposits in the Cash Management Trust are secured under a Trust Deed monitored by an independent Trustee; The New Zealand Guardian Trust Company Limited. Monthly reports are provided to the Trustee.

The Cash Management Trust has its own Board comprising three independent Directors. Board meetings are held quarterly.  KPMG is the auditor of the Cash Management Trust.

Client funds are invested subject to the investment guidelines and restrictions outlined in the Trust Deed. There are very strict guidelines on the type of investment, credit quality, concentration of risk and, within each of the on-call accounts, liquidity requirements. An abbreviated copy of the Investment Policy is available on request.

All client funds are invested in accordance with the Trust Deed and each currency on-call account is treated as a separate pool.  We therefore have a range of solutions for creating, growing and sustaining your wealth - all with the benefits of sound, professional advice.