If you are invested in an MDA product, Sandhurst is the custodian of the assets that you acquire through the MDAs.
Sandhurst is licensed by ASIC (AFSL 237906) to, amongst other things, act as a custodian. Sandhurst Trustees is a wholly owned subsidiary of Bendigo and Adelaide Bank Limited (AFSL 237879).
Under financial services laws and ASIC’s policies, an entity which holds the legal title to clients’ assets must meet certain minimum financial requirements. This includes a minimum level of net tangible assets of $5 million.
To ensure these minimum financial requirements are met, Endeavor entered into a custody agreement with Sandhurst. Under this custody agreement Sandhurst will hold the legal title to any assets acquired or held through the MDAs. While Sandhurst holds legal title, the beneficial interest in the shares remains with you. In accordance with customary practice, Sandhurst will hold the assets under the agreement in a pooled account, but the assets will be identified as your own using our electronic book-entry system.
This arrangement means that Endeavor holds records for all individual clients and is able to produce client reports on request at any time but does not hold the legal title to the shares. Under the custody agreement, Sandhurst holds the legal title to your shares as a ‘bare trustee’. This means that Sandhurst does not have the right to deal with your shares other than as directed by us.
Accordingly, Sandhurst’s role is simply to hold the legal title to the assets of clients of the MDAs and to give effect to the instructions provided by your Endeavor investment manager.
Sandhurst is obliged under the custody agreement to give effect to your investment manager’s instructions and is also required to provide various reports to Endeavor at regular intervals in relation to the assets held by it in connection with the MDAS.
Finally, under the custody agreement Sandhurst is required to maintain an adequate level of insurance in relation to its activities as a custodian.