Malaysia: Implementation of segregated account structure for RENTAS debt securities - update
This Announcement, originally published on 20 March 2018 and modified on 6 April 2018, 13 April 2018 and 27 April has been updated following the postponement of the implementation of segregated account structure for RENTAS debt securities. Changes are highlighted in both this page and the attached PDF.
Further to Marketflash M18002 and effective
21 May 2018
the Malaysian central bank, Bank Negara Malaysia (BNM), requires resident and non-resident investors (as described in Table A of the attached PDF) of Real-Time Electronic Transfer of Funds and Securities System (RENTAS) debt securities settle these securities per ultimate beneficial owner (UBO) via segregated securities accounts. The new requirement is being introduced by BNM in order to enhance the domestic settlement infrastructure, provide greater transparency and facilitate the surveillance of the onshore financial market.
Clearstream Banking1 will comply with BNM’s segregated securities account requirement effective 21 May 2018, and will ensure that the impacts of the new requirement are kept to a minimum for our customers.
Impact on customers
Customers are requested to take note of the following in order to continue holding RENTAS debt securities via Clearstream Banking.
1. Obtain Legal Entity Identifier (LEI) per UBO.
By 20 April latest
2. Request Clearstream Banking to open an additional account per UBO in Clearstream Banking’s books.
By 6 April latest
3. Request Clearstream Banking to open a segregated securities account per UBO in Clearstream Banking’s depository and RENTAS.
Upon obtaining the LEIs
By 20 April latest
4. Instruct Clearstream Banking to migrate RENTAS debt securities from the existing customer omnibus account to the new Clearstream Banking account opened per UBO.
Upon opening of the additional Clearstream Banking account per UBO.
By 16 May latest
For full details please see the PDF attached below “Implementation of segregated account structure for RENTAS debt securities”
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.