How to obtain accreditation as a Fund Custodian.

Collaboration May 15, 2022 Add to Reading List

If you like finance or love to be a financier at any level, WSANDN Fund Custodian might be your dream come through.

WSANDN Fund Custodian accreditation obtained from The Global Directorate, Department of Fund Management to carry on Fund custody and management services on behalf of the WSANDN and on different scales. It is a niche curated to end poverty through global economic growth. The purpose of the WSANDN Funds is to generate and distribute required capital for development in every sector of the global economy as well as human development. The WSANDN Funds are targeted at various subnational, national and international regions, irrespective of size and location for the betterment of all the people and communities. Principally funds are allocated to each Fund Custodian, for effective management and onward distribution to their constituencies for approved projects.

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What is WSANDN Fund Custodian?

Generally, a WSANDN Fund Custodian is a registered ltd or public liability company, which is accredited to act as a manager, to keep custody and disburse funds solely on behalf of the WSANDN. The funds are provided by the WSANDN while they are managed by the custodians which go through a thorough process of accreditation. Who is eligible to set up a Fund Custodian company?

WSANDN Fund Custodian Companies can be established by locally based individuals, groups of individuals, community development associations or private corporate entities and must have a minimum of 3 directors.

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Sectors Of Operation

For wider reach and more equitable development, there are Funds created specifically for the following critical sectors of global economy:

1. Economic Growth

2. Food and Agricultural Development

3. International Aviation development

4. International Labour

5. Global Maritime sector development

6. Health sector development

7. Education sector development

8. Children

9. Emergency Intervention

10. Local and global Infrastructure development

11. Industries/ industrialisation

12. Wealth Funds

13. Small and Medium Enterprises development

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Accreditation And Regulation

The WSANDN Department of Fund Management periodically releases guidelines and regulations for Fund Custodians with relation to their registration, licensing, operation and administration. All Companies/organizations intending to operate as WSANDN Fund Custodians are required to be accredited by the WSANDN Department of Fund Management.

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Categories of WSANDN Fund Custodians

There are four categories an applicant may apply for. They are:

a. Tier 1 Fund Custodians:

A Tier 1 Fund Custodian is exclusively authorized to operate in a local government/ local council area, and is not allowed to open any offices outside the approved jurisdiction. Each Tier 1 Fund Custodian is authorised to manage transactions between $1Million - $1Billion as allotted by the Department of Fund Management.

b. Tier 2 Fund Custodians:

A Tier 2 is an exclusive subnational state or provincial level Fund Custodian, authorized to operate in one State or Province or a National Capital Territory NCT. It serves and operate as the subnational state/provincial headquaters of each Fund. A Tier 2 Fund Custodian is not allowed to open any branches except the state/provincial office. In this Tier, Fund Custodians are authorised to manage and handle transactions between $100million - $10billion or more as approved by the WSANDN Department of Fund Management.

c. Tier 3 Fund Custodians:

A Tier 3 is a National Fund Custodian authorized to operate in more than one State including the NCT. It serves and operate as the national headquaters of each Fund. A Tier 3 Fund Custodian is not allowed to open any branches except the national office. Each Fund Custodian in this Tier is authorised to manage direct transactions between $1billion - $100billion or more as approved by the WSANDN Department of Fund Management, as well as have oversight on all Custodians of the same sector in a nation.

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Application procedure for a Fund Custodian

Application for a WSANDN Fund Custodian is as follows:

1. Pre-accreditation Presentation

Before submitting a formal application for accreditation, promoters and investors must give the The Department of Fund Management a pre-accreditation presentation on the business case of the proposed Fund Custodian, demonstrating their understanding of the sector and particular WSANDN Fund of interest, their proposed constituency needs and strategy of meeting the needs.

2. Approval In Principle

Application for accreditation to operate as a WSANDN Fund Custodian should be sent to The Global Director of The Department of Fund Management. The Application should be accompanied by the following documents:

1. Evidence of payment of non-refundable application fee to the WSANDN Global Account.

2. Evidence of capital contribution made by each shareholder;

3. Evidence of fully refundable bond deposit to the WSANDN Global Account;

4. Certified true copies (CTC) of Company Registration

5. Detailed business plan or feasibility report

6. Draft copy of the company’s constitution or governing document or Memorandum and Articles of Association

7. Shareholders’ agreement providing terms for disposal/transfer of shares as well as authorization, amendments, waivers, reimbursement of expenses;

8. Detailed Company Policies

9. Duly signed resume and valid means of identification for the shareholders

10. Board composition, directors’ duly signed resumes and valid means of identification

11. Evidence of location of Head Office (rented or owned) for the take-off of the business

12. Consolidated statement of account showing the capital contribution for all shareholders.

13. Evidence of ability to meet technical requirements and modern infrastructural facilities such as office equipment, computers, telecommunications, to perform operations and meet other regulatory requirements.

14. Copies of letters of offer and acceptance of employment in respect of the management team

15. List of proposed top management staff and duly signed resume stating their qualification (including photocopies of academic and professional credentials), experience, records of accomplishments and valid means of identification

16. Comprehensive plan on the commencement of operations with milestones and timelines for roll-out.

17. As a requirement to the grant of Fund Custodian accreditation, the WSANDN Department of Fund Management will conduct an inspection of the premises and facilities of the proposed Fund Custodian to determine its compliance with the relevant requirements.

18. Evidence of capacity to manage tier funds

Following the receipt of an application, the WSANDN Department of Fund Management will communicate its decision to the applicant within 60 days either approving or denying the grant of the Accreditation.

B. Final Accreditation

Upon readiness to commence operation by the Fund Custodian, it will inform the WSANDN Global Department of Fund Management in writing and submit same with a copy of the following information:

1. Shareholders’ Register;

2. Share certificate issued to each investor;

3. Opening statement of affairs signed by directors and external auditors;

4. Risk Management Framework

5. Internal control policy

6. Minutes of pre-commencement board meeting;

7. Evidence of integration of their infrastructure with the National Payments System(if applicable); and

8. Evidence of ability to meet technical requirements and infrastructural facilities in office equipment, computers, telecommunications, to perform operations, render regulatory returns, respond to the Department of Fund Management’s requests and handle customer complaints quickly and efficiently.

9. Board and board committee charters stating the roles and responsibilities of the board and sub-committees.

10. Evidence of location of Office(s) (rented or owned) fully branded with the name and logo of the Sector Fund for the take-off of operations.

11. Evidence of designated name registration/incorporation.

Upon granting of accreditation, the Fund Custodian is expected to display a copy of the Accreditation Certificate in a conspicuous position at all its offices, branches and centers.

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Financial Requirements for WSANDN Fund Custodian