SCOPE, STRUCTURE, OWNERSHIP, CAPITAL,
REGULATION AND AUDIT
The purpose of this section is to
understand the ownership structure and financial strength of your
institution, as well as the level of regulatory and operational
supervision to which it is subject.
Scope, Structure, Ownership
|
| 1 |
Rule 17f-7, by reference to Rule 17f-4, requires
that, for a depository to be eligible to hold securities of U.S.
registered investment companies (such depositories hereinafter referred to
as “Eligible Securities Depositories”), the depository must be a “system
for the central handling of securities where all securities of any
particular class or series of any issuer deposited within the system are
treated as fungible and may be transferred or pledged by bookkeeping entry
without physical delivery of the securities.”
In particular, are
all securities of a particular class or series of any issuer that are
deposited in your institution treated as fungible, and can they be
transferred or pledged by bookkeeping entry without physical delivery of
the securities? 
Yes
No - then
answer 1a
Other - then answer
1a
1a. Please explain:
|
| 2 |
Rule 17f-7 also requires that an Eligible
Securities Depository “acts as or operates a system for the central
handling of securities or equivalent book-entries in the country where it
is incorporated,” or “acts as or operates a transnational system for the
central handling of securities or equivalent book-entries.”
Does
your institution: (Choose all that apply.)
Act as or operate a system for the central handling
of securities or equivalent book-entries in the country where it is
incorporated?
Act as or operate
a transnational system for the central handling of securities or
equivalent book-entries?
Act in
another capacity with respect to the handling of securities or equivalent
book-entries? - then answer
2a
Not
applicable - then answer
2a
Other - then answer 2a
2a.
Please explain:
|
| 3 |
What type of legal entity is the institution?
(Choose all that apply.)
Public Company
Private Company
Central
Bank (or part thereof)
Stock
Exchange (or part thereof)
Other - then answer
3a
3a. If other, please
explain:
|
| 4 |
Is the institution operated as a "for profit" or a
"not for profit" organization?
For profit
Not for profit
Other - then
answer 4a
4a. If other, please
explain:
|
| 5 |
Please provide the names of the owners and their
ownership interest percentages.
Exchanges (29%)
Banks
(30%)
Pension Funds (30%)
Life Insurance Cos. (10%)
Others
(1%)
|
| 6 |
What is the date of establishment of the
depository?
March
1993
|
| 7 |
What is the date that the depository's operations
began?
September
1995
|
| 8 |
Under what regulation or statute is the depository
established and governed?
Under law 18.876 and its
regulation.
- then answer
8a
8a. Is the regulation or statute
electronically available?
Yes - then
answer 8b
No
8b. If regulation or statute
is electronically available, please supply web address or upload
document.
8c. If more than
one link or document, please supply additional information
here:
8d. If more than
one link or document, please supply additional information
here:
8e. If more than
one link or document, please supply additional information
here:
8f. If more than
one link or document, please supply additional information
here:
|
| 9 |
Rule 17f-7 requires that an Eligible Securities
Depository “is regulated by a foreign financial regulatory authority as
defined under section 2(a)(50) of the Act”, with section 2(a)(50)
establishing that “’foreign financial regulatory authority’ means any (A)
foreign securities authority, (B) other governmental body or foreign
equivalent of a self-regulatory organization empowered by a foreign
government to administer or enforce its laws relating to the regulation of
fiduciaries, trusts, commercial lending, insurance, trading in contracts
of sale of a commodity for future delivery, or other instruments traded on
or subject to the rules of a contract market, board of trade or foreign
equivalent, or other financial activities, or (C) membership organization
a function of which is to regulate the participation of its members in
activities listed above.”
Who regulates the activities of the
depository? (Choose all that apply.)
A governmental body or regulatory organization empowered to
administer or enforce laws related to securities matters.
A governmental body or self-regulatory
organization empowered to administer or enforce laws related to other
financial activities.
A membership
organization which regulates the participation of its members in
securities matters or other financial activities.
Other. - then answer
9a
9a. Please explain:
|
| 10 |
Please provide the name of the regulatory
authority(ies) identified in question 9:
Superintendencia de Valores y
Seguros de Chile (SVS)
|
| 11 |
Rule 17f-7 requires that an Eligible Securities
Depository “is subject to periodic examination by regulatory authorities
or independent accountants.”
Is the depository subject to periodic
examination by: (Choose all that apply.)
Regulatory authorities?
Independent accountants?
Other. - then answer
11a
11a. Please explain:
Vigilance Committee which is
composed of 5 representatives of the participants.
Internal
Auditors.
|
| 12 |
What enforcement actions are available to the
regulatory authority(ies) for breach of applicable statute or regulatory
requirements? (Choose all that apply.)
Name of Authority
(1):
Superintendencia de Valores y
Seguros de Chile (SVS)
- then answer
12a
12a.
Fines.
Restrictions on depository activities.
Suspension of depository activities.
Termination of depository
activities.
Other. - then answer
12b
12b. Please explain:
Written
reprimand
12c. Name of Authority
(2):
- then answer 12d
12d.
Fines.
Restrictions on depository activities.
Suspension of depository activities.
Termination of depository
activities.
Other. - then answer
12e
12e. Please explain:
|
| 13 |
Has there been any use of such enforcement actions
in the last three years?
Yes - then
answer 13a
No
Other - then answer
13a
13a. If yes or other, please
explain:
|
Capital |
| 14 |
Are annual financial statements publicly
disclosed?
Yes - then
answer 14a
No - then answer
14c
Other - then answer
14h
14a. If yes, the AGC requests a
copy of the institution's annual report. Is the annual report available
electronically?
Yes - then
answer 14b
No. (If no, please send a copy of the annual report to the
Washington office of Baker & McKenzie, 815 Connecticut Ave, NW,
Washington, DC 20006, Attn: Brian C.
Herbert)
14b. If yes, please upload the
document here or insert web link:
14f. If more than
one document for 14b, please upload the additional document here or insert
web link:
14g. If more than
one document for 14b, please upload the document here or insert web
link:
14c. If no, and
annual report and/or financial statements are not disclosed, please state
your share capital, reserves, and retained earnings (or equivalents as
determined under local accounting standards).
Share
Capital:
- then answer 14d
14d.
Reserves:
- then answer 14e
14e.
Retained Earnings:
14h.
If other, please explain:
|
Audit
With respect
to the depository's financial audit |
| 15 |
Do internal auditors perform a financial audit?
(Choose all that apply.)
Yes - then answer
15a
No ›› take you to 16
Other - then answer
15g
15a. If Yes, which department in
your depository handles the financial audit?
Audit
Department.
- then answer
15b
15b. How frequently does the
financial audit occur? (Choose one.)
Two or more times a year - then answer 15d
Annually -
then answer 15d
Less than Annually - then
answer 15c
Other. Please explain in 15c. - then answer 15c
15c. If
less than annually or other, please explain:
15d.
Are results of the financial audit publicly available?
Yes - then
answer 15e
No - then answer
15e
15e. Please select the statement
that most accurately characterizes the results of the last financial
audit: (Choose one.)
No material exceptions found.
Minor exceptions
found. - then answer
15f
Material exceptions found. -
then answer 15f
Other - then answer
15f
15f. If minor, material or "other"
exceptions were found, what actions were taken? Please
describe:
15g.
If other, please explain:
15h.
Please list the date of your last financial audit performed by internal
auditors and the period that the audit covered:
|
| 16 |
Do independent external auditors perform a
financial audit? (Choose all that apply.)
Yes - then answer
16a
No ›› take you to 17
Other - then answer
16h
16a. If yes, what is the name of
the accountant/accounting firm that handles the financial
audit?
Ernst &
Young
- then answer
16b
16b. How frequently does the
financial audit occur? (Choose one.)
Two or more times a year - then answer 16d
Annually -
then answer 16d
Less than Annually - then
answer 16c
Other. Please explain in 16g. - then answer 16g
16c. If
less than annually, please explain:
16d.
Are results of the financial audit publicly available?
Yes - then
answer 16e
No - then answer
16e
Other - then answer
16i
16e. Please select the statement
that most accurately characterizes the results of the last financial
audit: (Choose one.)
No material exceptions found.
Minor exceptions
found. - then answer
16f
Material exceptions found. -
then answer 16f
Other - then answer
16f
16f. If minor, material or "other"
exceptions were found, what actions were taken? Please
describe:
16i.
If other, please explain:
16g.
If other, please explain:
16h.
If other, please explain:
16j.
Please list the date of your last financial audit performed by
independent external auditors and the period that the audit
covered:
|
| 17 |
Do regulatory authorities perform a financial
audit? (Choose all that apply.)
Yes - then answer
17a
No ›› take you to 18
Other - then answer
17h
17a. If Yes, what is the name of
the regulatory authority that handles the financial audit?
Superintendencia de Valores y
Seguros de Chile (SVS)
- then answer
17b
17b. How frequently does the
financial audit occur? (Choose one.)
Two or more times a year - then answer 17d
Annually -
then answer 17d
Less than Annually - then
answer 17c
Other. Please explain in 17g. - then answer 17g
17c. If
less than annually, please explain:
17d.
Are results of the financial audit publicly available?
Yes - then
answer 17e
No - then answer
17e
17e. Please select the statement
that most accurately characterizes the results of the last financial
audit: (Choose one.)
No material exceptions found.
Minor exceptions
found. - then answer
17f
Material exceptions found. -
then answer 17f
Other - then answer
17f
17f. If minor, material or "other"
exceptions were found, what actions were taken? Please
describe:
17g.
If other, please explain:
17h.
If other, please explain:
17i.
Please list the date of your last financial audit performed by
regulatory authorities and the period that the audit covered:
|
| 18 |
Do any other auditors perform a financial audit?
(Choose all that apply.)
Yes - then answer
18a
No ›› take you to
19
Other - then answer 18h
18a. If
Yes, please explain and identify by name?
- then answer 18b
18b.
How frequently does the financial audit occur? (Choose one.)
Two or more times a year - then answer 18d
Annually -
then answer 18d
Less than Annually - then
answer 18c
Other. Please explain in 18g. - then answer 18g
18c. If
less than annually, please explain:
18d.
Are results of the financial audit publicly available?
Yes - then
answer 18e
No - then answer
18e
18e. Please select the statement
that most accurately characterizes the results of the last financial
audit: (Choose one.)
No material exceptions found.
Minor exceptions
found. - then answer
18f
Material exceptions found. -
then answer 18f
Other - then answer
18f
18f. If minor, material or "other"
exceptions were found, what actions were taken? Please
describe:
18g.
If other, please explain:
18h.
If other, please explain:
18i.
Please list the date of your last financial audit performed by any
other auditors and the period that the audit covered:
|
With respect to the
depository's operational audit |
| 19 |
Do internal auditors perform an operational audit?
(Choose all that apply.)
Yes - then answer
19a
No ›› take you to 20
Other - then answer
19g
19a. If Yes, which department in
your depository handles the operational audit?
Audit
Department.
- then answer
19b
19b. How frequently does the
operational audit occur? (Choose one.)
Two or more times a year
Annually
Less than
Annually - then answer
19c
Other.
Please explain in 19c. - then answer
19c
19c. If less than annually or
other, please explain:
19d.
Are results of the operational audit publicly available?
Yes - then
answer 19e
No - then answer
19e
19e. Please select the statement
that most accurately characterizes the results of the last operational
audit: (Choose one.)
No material exceptions found.
Minor exceptions
found. - then answer
19f
Material exceptions found. -
then answer 19f
Other - then answer
19f
19f. If minor, material or "other"
exceptions were found, what actions were taken? Please
describe:
19g.
If other, please explain:
19h.
Please list the date of your last operational audit performed by
internal auditors and the period that the audit covered:
|
| 20 |
Do independent external accountants perform an
operational audit? (Choose all that apply.)
Yes - then answer
20a
No ›› take you to 21
Other - then answer
20h
20a. If Yes, what is the name of
the accountant/accounting firm that handles the operational
audit?
Ernst &
Young
- then answer
20b
20b. How frequently does the
operational audit occur? (Choose one.)
Two or more times a year - then answer 20d
Annually -
then answer 20d
Less than Annually - then
answer 20c
Other. Please explain in 20g. - then answer 20g
20c. If
less than annually, please explain:
20d.
Are results of the operational audit publicly available?
Yes - then
answer 20e
No - then answer
20e
20e. Please select the statement
that most accurately characterizes the results of the last operational
audit: (Choose one.)
No material exceptions found.
Minor exceptions
found. - then answer
20f
Material exceptions found. -
then answer 20f
Other - then answer
20f
20f. If minor, material or "other"
exceptions were found, what actions were taken? Please
describe:
20g.
If other, please explain:
20h.
If other, please explain:
20i.
Please list the date of your last operational audit performed by
independent external accountants and the period that the audit covered:
|
| 21 |
Do regulatory authorities perform an operational
audit? (Choose all that apply.)
Yes - then answer
21a
No ›› take you to 22
Other - then answer
21h
21a. If Yes, what is the name of
the regulatory authority that handles the operational audit?
Superintendencia de Valores y
Seguros de Chile (SVS)
- then answer
21b
21b. How frequently does the
operational audit occur? (Choose one.)
Two or more times a year - then answer 21d
Annually -
then answer 21d
Less than Annually - then answer 21c
Other. Please explain in
21g. - then answer
21g
21c. If less than annually, please
explain:
Auditing is
infrequent and SVS has the power to audit whenever they
choose.
21d. Are results of the
operational audit publicly available?
Yes - then
answer 21e
No - then answer
21e
21e. Please select the statement
that most accurately characterizes the results of the last operational
audit: (Choose one.)
No material exceptions found.
Minor exceptions
found. - then answer
21f
Material exceptions found. -
then answer 21f
Other - then answer
21f
21f. If minor, material or "other"
exceptions were found, what actions were taken? Please
describe:
21g.
If other, please explain:
21h.
If other, please explain:
21i.
Please list the date of your last operational audit performed by
regulatory authorities and the period that the audit covered:
|
| 22 |
Do any other auditors perform an operational audit?
(Choose all that apply.)
Yes - then answer
22a
No ›› take you to 23
Other - then answer
22h
22a. If Yes, please explain and
identify by name:
There
is an instance called Vigilance Committee, administrated directly by
participants . Its rules are expressed in the law.
- then answer 22b
22b.
How frequently does the operational audit occur? (Choose one.)
Two or more times a year - then answer 22d
Annually -
then answer 22d
Less than Annually - then
answer 22c
Other. Please explain in 22g. - then answer 22g
22c. If
less than annually, please explain:
22d.
Are results of the operational audit publicly available?
Yes - then
answer 22e
No - then answer
22e
22e. Please select the statement
that most accurately characterizes the results of the last operational
audit: (Choose one.)
No material exceptions found.
Minor exceptions
found. - then answer
22f
Material exceptions found. -
then answer 22f
Other - then answer
22f
22f. If minor, material or "other"
exceptions were found, what actions were taken? Please
describe:
22g.
If other, please explain:
22h.
If other, please explain:
22i.
Please list the date of your last operational audit performed by any
other auditors and the period that the audit covered:
|
PARTICIPANTS AND
PARTICIPATION
The purpose of the section is to understand
issues relating to participation in the depository, including eligibility
requirements, conditions of participation, and supervision of
participants.
Participant Eligibility Requirements |
| 23 |
What types of entities are eligible to become
participants and how many of each type are there currently? (Choose all
that apply.)
Banks - then answer 23a
Brokers - then answer
23b
Individuals - then answer
23c
Foreign
Institutions - then answer
23d
Other
entities. - then answer
23e
Not
applicable
23a. How many Bank participants are
there currently?
27
- then answer 23g
23g.
Please select the features included in the eligibility requirements for
Banks. (Choose all that apply.)
Financial Thresholds - then answer
23h
Regulatory
Oversight - then answer
23h
Market
Experience - then answer
23h
Other. Please explain
in 23q. - then answer
23q
23h. Where can a description of the
specific eligibility requirements for Bank participants be
found?
Depository law
(law 18876).
23q. Please
explain:
23b.
How many Broker participants are there currently?
41
- then answer 23i
23i.
Please select the features included in the eligibility requirements for
Brokers. (Choose all that apply.)
Financial Thresholds - then answer
23j
Regulatory
Oversight - then answer
23j
Market
Experience - then answer
23j
Other. Please explain
in 23r. - then answer
23r
23j. Where can a description of the
specific eligibility requirements for Broker participants be
found?
Depository law
(law 18876).
23r. If other, please
explain:
23c.
How many Individual participants are there currently?
- then answer 23k
23k.
Please select the features included in the eligibility requirements for
Individual participants. (Choose all that apply.)
Financial Thresholds - then answer
23l
Regulatory
Oversight - then answer
23l
Market
Experience - then answer
23l
Other. Please explain
in 23t. - then answer
23t
23l. Where can a description of the
specific eligibility requirements for Individual participants be
found?
23t.
If other, please explain:
23d.
How many Foreign Institution participants are there
currently?
0
- then answer 23m
23m.
Please select the features included in the eligibility requirements for
Foreign Institution participants. (Choose all that apply.)
Financial Thresholds - then answer
23n
Regulatory
Oversight - then answer
23n
Market
Experience - then answer
23n
Other. Please explain
in 23u. - then answer
23u
23n. Where can a description of the
specific eligibility requirements for Foreign Institution participants be
found?
Depository law
(law 18876).
23u. If other, please
explain:
23e.
If you have selected "Other entities" above, please
explain:
Some
institutions like banks, brokers, mutual funds, investment funds, foreign
investment funds, pension funds, insurance companies and stock exchanges
can apply directly, because they are explicitly authorized by the
depository law (law 18.876). “Others institutions” can apply, and it is up
to the depository’s board of directors to make a decision or to grant
permission (70% of directors).
- then
answer 23f
23f. Indicate how many
"Other entities" are currently participants?
81
- then answer 23o
23o.
Please select the features included in the eligibility requirements for
the participants referred to above as "Other entities". (Choose all that
apply.)
Financial Threshold - then answer 23p
Regulatory Oversight - then answer 23p
Market Experience - then answer
23p
Other. Please explain
in 23s. - then answer
23s
23p. Where can a description of the
specific eligibility requirements for participants describe above as
"Other entities" be found?
Depository law (law
18876).
23s. If other, please
explain:
|
| 24 |
Are participants required to contribute capital to
the depository that would result in ownership of the depository?
Yes - then
answer 24a
No
Not applicable
Other - then
answer 24b
24a. If yes, what fixed
amount is required or what formula is used to determine the appropriate
contribution level?
24b.
If other, please explain:
|
| 25 |
Are prospective participants subject to an initial
review and approval process regarding compliance with eligibility
requirements?
Yes
No
Not applicable
Other - then answer 25a
25a. If
other, please explain:
|
Conditions of participation
|
| 26 |
What governs the relationship between the
depository and the participants? (Choose all that apply.)
Relevant law and regulation
Standard participation contract
Established terms and conditions of
participation
By-laws of the
depository
Rules of the
depository
Other - then answer 26a
Not applicable
26a. Please
explain:
|
| 27 |
Rule 17f-7 requires that an Eligible Securities
Depository “holds assets for the custodian that participates in the system
on behalf of the Fund under safekeeping conditions no less favorable that
the conditions that apply to other participants.”
Please confirm
that assets of foreign investors held by custodians as participants in the
depository are held under safekeeping conditions no less favorable than
the conditions that apply to other participants.
Yes
No - then
answer 27a
Not applicable - then answer
27a
Other - then answer
27a
27a. If no, other or not
applicable, please explain:
|
| 28 |
How does the depository notify participants of
material changes to the conditions of participation? (Choose all that
apply.)
By e-mail
By telephone
By public announcement
By
press release
Other - then answer
28a
Not
applicable
28a. Please explain:
By letter sent to the
participants.
|
Governance of participants
|
| 29 |
Who enforces compliance with the depository’s
conditions of participation? (Choose all that apply.)
The depository
The exchange
The
depository's regulator
Other - then answer
29a
Not
applicable
29a. Please explain:
|
| 30 |
What enforcement actions are available to the
enforcement authority? (Choose all that apply.)
Fines
Restrictions on participation
Suspension of participation
Termination of participation
Other - then
answer 30a
Not
applicable
30a. Please explain:
|
| 31 |
Has there been any such enforcement actions in the
last three years?
Yes - then
answer 31a
No
Not applicable
Other - then
answer 31b
31a. If yes, please explain,
including information relative to any suspensions of depository
participants:
31b.
If other, please explain:
|
DEPOSITORY FUNCTIONALITY AND SERVICES; USE
OF AGENTS
Certain functionalities and services reduce risk
to an investor if provided in an efficient manner. The purpose of this
section is to identify those functionalities that may potentially be
offered by depositories and clearing systems around the world, and
ascertain whether they are offered by your institution.
General
|
| 32 |
For which of the following security types do you
serve as a depository or clearing system? (Choose all that
apply.)
Government
Securities - then answer
32b
Equities - then answer
32c
Corporate
Bonds - then answer 32d
Corporate Money Market
Instruments - then answer
32e
Others - then answer
32a
Not
applicable
32a. Please name the other security
types:
Bank bonds,
mortgage bonds, certificates of deposit.
- then answer 32f
32f.
Please name other depositories and clearing systems that handle the
same securities listed in "Others" in your market:
Depósito Central de Valores S.A.,
Depósito de Valores (DCV) is the only institution in the
country.
32b. Please name other
depositories and clearing systems that handle Government Securities in
your market:
DCV is the
only institution in the country.
32c.
Please name other depositories and clearing systems that handle
Equities in your market:
DCV is the only institution in the
country.
32d. Please name other
depositories and clearing systems that handle Corporate Bonds in your
market:
DCV is the only
institution in the country.
32e. Please
name other depositories and clearing systems that handle Corporate Money
Market Instruments in your market:
DCV is the only institution in the
country.
|
Government Securities
Settlements |
| 33 |
Is the use of the depository in your market
compulsory by law or compulsory by market practice for the
settlement of government securities?
(Please note that
responses to questions 33 through 42 should be consistent with questions
73 and 74.)
By law -
then answer 33a
By market practice - then
answer 33a
Neither/other - then answer
33b
Not
applicable
33a. What is the percentage
of the total market of government securities in your jurisdiction (either
volume or value) settled within your institution, exclusive of your links
with third parties?
33b.
If neither/other, please explain:
It is only compulsory by law for
brokers. For the other participants it is compulsory by market
practice.
|
Government Securities
Safekeeping |
| 34 |
Is the use of the depository in your market
compulsory by law or compulsory by market practice for the
safekeeping of government securities? (Choose all that
apply.)
(Please note that responses to questions 33 through 42
should be consistent with questions 73 and 74.)
By law - then answer
34a
By market
practice - then answer 34a
Neither/other - then answer 34b
Not applicable
34a. What is the
percentage of the total market of government securities in your
jurisdiction (either volume or value) held in safekeeping within your
institution?
34b.
If neither/other, please explain:
It is only compulsory by law for
pension funds, due to 90% of pension funds assets shall be deposited in
the depository. For the other participants it is compulsory by market
practice.
|
Equities Settlements |
| 35 |
Is the use of the depository in your market
compulsory by law or compulsory by market practice for the
settlement of equities? (Choose all that apply.)
(Please
note that responses to questions 33 through 42 should be consistent with
questions 73 and 74.)
By law - then answer
35a
By market
practice - then answer 35a
Neither/other - then answer 35b
Not applicable
35a. What is the
percentage of the total market of equities in your jurisdiction (either
volume or value) settled within your institution, exclusive of your links
with third parties?
35b.
If neither/other, please explain:
It is only compulsory by law for
brokers. For the other participants it is compulsory by market
practice.
|
Equities Safekeeping |
| 36 |
Is the use of the depository in your market
compulsory by law or compulsory by market practice for the
safekeeping of equities? (Choose all that apply.)
(Please
note that responses to questions 33 through 42 should be consistent with
questions 73 and 74.)
By law - then answer
36a
By market
practice - then answer 36a
Neither/other - then answer 36b
Not applicable
36a. What is the
percentage of the total market of equities in your jurisdiction (either
volume or value) held in safekeeping within your institution?
36b.
If neither/other, please explain:
It is only compulsory by law for
pension funds, due to 90% of pension funds assets shall be deposited in
the depository. For the other participants it is compulsory by market
practice.
|
Corporate Bonds Settlements
|
| 37 |
Is the use of the depository in your market
compulsory by law or compulsory by market practice for the
settlement of corporate bonds? (Choose all that
apply.)
(Please note that responses to questions 33 through 42
should be consistent with questions 73 and 74.)
By law - then answer
37a
By market
practice - then answer 37a
Neither/other - then answer 37b
Not applicable
37a. What is the
percentage of the total market of corporate bonds in your jurisdiction
(either volume or value) settled within your institution, exclusive of
your links with third parties?
37b.
If neither/other, please explain:
It is only compulsory by law for
brokers. For the other participants it is compulsory by market
practice.
|
Corporate Bonds Safekeeping
|
| 38 |
Is the use of the depository in your market
compulsory by law or compulsory by market practice for the
safekeeping of corporate bonds? (Choose all that
apply.)
(Please note that responses to questions 33 through 42
should be consistent with questions 73 and 74.)
By law - then answer
38a
By market
practice - then answer 38a
Neither/other - then answer 38b
Not applicable
38a. What is the
percentage of the total market of corporate bonds in your jurisdiction
(either volume or value) held in safekeeping within your
institution?
38b.
If neither/other, please explain:
It is only compulsory by law for
pension funds, due to 90% of pension funds assets shall be deposited in
the depository. For the other participants it is compulsory by market
practice.
|
Corporate Money Market
Instruments Settlements |
| 39 |
Is the use of the depository in your market
compulsory by law or compulsory by market practice for the
settlement of corporate money market instruments? (Choose all that
apply.)
(Please note that responses to questions 33 through 42
should be consistent with questions 73 and 74.)
By law - then answer
39a
By market
practice - then answer 39a
Neither/other - then answer 39b
Not applicable
39a. What is the
percentage of the total market of corporate money market instruments in
your jurisdiction (either volume or value) settled within your
institution, exclusive of your links with third parties?
39b.
If neither/other, please explain:
It is only compulsory by law for
brokers. For the other participants it is compulsory by market
practice.
|
Corporate Money Market
Instruments Safekeeping |
| 40 |
Is the use of the depository in your market
compulsory by law or compulsory by market practice for the
safekeeping of corporate money market instruments? (Choose all that
apply.)
(Please note that responses to questions 33 through 42
should be consistent with questions 73 and 74.)
By law - then answer
40a
By market
practice - then answer 40a
Neither/other - then answer 40b
Not applicable
40a. What is the
percentage of the total market of corporate money market instruments in
your jurisdiction (either volume or value) held in safekeeping within your
institution?
40b.
If neither/other, please explain:
It is only compulsory by law for
pension funds, due to 90% of pension funds assets shall be deposited in
the depository. For the other participants it is compulsory by market
practice.
|
Other Eligible Securities
Settlements |
| 41 |
Is the use of the depository in your market
compulsory by law or compulsory by market practice for the
settlement of other eligible securities? (Choose all that
apply.)
(Please note that responses to questions 33 through 42
should be consistent with questions 73 and 74.)
By law - then answer
41a
By market
practice - then answer 41a
Neither/other - then answer 41c
Not applicable
41a. What is the
percentage of the total market of other eligible securities in your
jurisdiction (either volume or value) settled within your institution,
exclusive of your links with third parties?
- then answer 41b
41b.
Please provide description of the other securities:
41c.
If neither/other, please explain:
It is only compulsory by law for
brokers. For the other participants it is compulsory by market
practice.
|
Other Eligible Securities
Safekeeping |
| 42 |
Is the use of the depository in your market
compulsory by law or compulsory by market practice for the
safekeeping of other eligible securities? (Choose all that
apply.)
(Please note that responses to questions 33 through 42
should be consistent with questions 73 and 74.)
By law - then answer
42a
By market
practice - then answer 42a
Neither/other - then answer 42c
Not applicable
42a. What is the
percentage of the total market of other eligible securities in your
jurisdiction (either volume or value) held in safekeeping within your
institution?
- then answer 42b
42b.
Please provide description of the other securities:
42c.
If neither/other, please explain:
It is only compulsory by law for
pension funds, due to 90% of pension funds assets shall be deposited in
the depository. For the other participants it is compulsory by market
practice.
|
| 43 |
Are there any activities performed by a third party
for which the depository would assume responsibility on behalf of
participants (e.g., vaulting of physical securities, registration,
entitlement processing, etc.)?
Yes - then
answer 43a
No
Not applicable
Other - then
answer 43g
43a. If agents are employed,
please indicate which services they supply:
- then answer 43b
43b. If
agents are employed, do you assume responsibility for losses that may
arise due to the actions or inactions of the agent(s)?
Yes - then
answer 43c
No
43c. If you acknowledge
responsibility, please indicate whether your responsibility is assumed
(Choose all that apply.)
regardless of whether such loss was caused by any action or
inaction of the agent; - then answer
43d
if such loss was
caused by the agent's action or inaction and such action or inaction was
deemed to be negligence on the part of the agent; - then answer 43d
if such loss was caused by the agent's action or inaction and such
action or inaction was deemed to be gross negligence on the part of the
agent; - then answer 43d
if the loss was caused by the willful
default or other willful conduct on the part of the
agent; - then answer 43d
Other -
then answer 43h
43d. If you acknowledge
responsibility for agents, your responsibility is assumed for losses
(Choose all that apply.)
without limit.
which are
not consequential losses.
subject to a monetary limit not based on insurance
limits. - then answer 43e
subject to a monetary limit based on
insurance limits. - then answer
43f
Other - then answer
43i
43e. Please specify
limit:
43f.
Please specify limit:
43i.
If other, please explain:
43h.
If other, please explain:
43g.
If other, please explain:
|
| 44 |
Has any participant suffered any losses in the past
three years due to the depository’s performance?
Yes - then
answer 44a
No
Not applicable
Other - then
answer 44m
44a. If yes, please select
all of the following in which loss has occurred. You will be prompted to
enter the number of instances and total loss in USD thereafter. (Choose
all that apply.)
Corporate Action - then answer 44b
Settlement Process - Securities -
then answer 44c
Settlement Process - Cash - then
answer 44d
System
Outage - then answer 44e
Other -
then answer 44f
44b. Corporate Action.
Please specify number of instances:
- then answer 44g
44g.
Corporate Action. Please specify total loss in USD.
44c.
Settlement Process - Securities. Please specify number of
instances:
- then answer 44h
44h.
Settlement Process - Securities. Please specify total loss in
USD:
44d.
Settlement Process - Cash. Please specify number of
instances:
- then answer 44i
44i.
Settlement Process - Cash. Please specify total loss in
USD:
44e.
System Outage. Please specify number of instances:
- then answer 44j
44j.
System Outage. Please specify total loss in USD:
44f.
If Other, please explain:
- then answer 44k
44k.
For Other, please specify number of instances:
- then answer 44l
44l.
For Other, please specify total loss in USD:
44m.
If other, please explain:
|
Other Services |
| 45 |
Who accepts cash deposits for depository
transactions? (Choose all that apply.)
Depository
Central
Bank
Banks appointed by
depository. - then answer
45a
Others - then answer
45b
Not
applicable
45a. Please name
banks:
45b.
If others, please explain:
Banks. The seller receives a cashier
check and deposits it in his bank account. These documents have the
guarantee of the Central Bank of Chile, in case any Commercial Bank can
not pay the funds due to liquidity problems.
|
| 46 |
Who processes cash clearing for depository
transactions? (Choose all that apply.)
Depository
Central Bank
Banks
appointed by depository. - then answer
46a
Others - then answer
46b
Not
applicable
46a. Please name banks appointed by
depository:
46b.
If others, please explain:
|
| 47 |
Who controls the movement of cash for cash
deposits? (Choose all that apply.)
Depository
Central
Bank
Banks appointed by
depository. - then answer
47a
Others - then answer
47b
Not
applicable
47a. Please name banks appointed by
depository:
47b.
If others, please explain:
1. Buyer goes to the seller and pays
the trades with a cashier check. These documents have the guarantee of the
Central Bank of Chile. 2. Seller receives the payment and registers this
in the depository system. 3. Securities are transferred to the buyer
account.
|
| 48 |
Who controls the movement of cash for cash
clearing? (Choose all that apply.)
Depository
Central Bank
Banks
appointed by depository. - then answer
48a
Others - then answer
48b
Not
applicable
48a. Please name banks appointed by
depository:
48b.
If others, please explain:
|
| 49 |
Please indicate services you provide. (Choose all
that apply.)
Information in advance on
corporate (annual or special) meetings in order that owners can
vote.
Tax assistance where
foreign holders may be entitled to tax relief at source or through a
claim.
In order to avoid fails,
an automatic securities lending facility - if requested - is provided
for: - then answer 49a
Collateral handling in support of
activities including securities lending, overdraft coverage, cash
management, repurchase agreements, etc. Please provide
details - then answer 49c
Same day turnaround
settlements.
Information on
distribution of new issues (IPO, Privatization).
Other. - then answer
49d
Not
applicable
49a. Automatic securities lending
facility is provided for: (Choose all that apply.)
Brokers
Banks
Other Financial Institutions
Other -
then answer 49b
49b. If Other, please
explain:
49c.
Collateral Handling: Please provide details:
49d.
If Other services, please explain:
|
| 50 |
What procedures are in place for the collection of
corporate action entitlements? (Choose all that apply.)
Credited to the securities account on the day indicated below
regardless of whether actually collected by the depository on the
scheduled date - then answer
50a
Credited to the
securities account upon actual receipt by the depository.
Corporate action entitlements are
handled by an entity separate from the depository. - then answer 50c
Not applicable.
Other.
Please explain in 50d. - then answer
50d
50a. Credited to the securities
account: (Choose all that apply.)
On pay date.
On pay date
+1.
On pay date +2.
Other. -
then answer 50b
50b. If other, please
explain:
50c.
Name of entity:
Registrars and Transfers Agents. In
some cases is the same corporation and in others are services
providers.
50d. If other, please
explain:
|
| 51 |
What is the average percentage of entitlements that
have actually been collected by the depository when the credits are made
to the participant accounts?
0
|
| 52 |
What procedures are in place for the collection of
interest and dividends? (Choose all that apply.)
Credited to the cash account on the day indicated below regardless
of whether actually collected by the depository on the scheduled
date - then answer 52a
Credited to the cash account upon actual
receipt by the depository.
Income and dividend collection is handled by an entity separate
from the depository. - then answer
52c
Not
applicable.
Other. Please
explain in 52d. - then answer
52d
52a. Credited to the cash account:
(Choose all that apply.)
On pay date.
On pay date
+1.
On pay date +2.
Other. -
then answer 52b
52b. If other, please
explain:
52c.
Name of entity:
Commercial banks. The depository
calculates the amount of interest and dividends and then notifies the
participants to claim the payments which are due to them. And in turn
advises to the issuers of their forthcoming payments to depository’s
participants.
52d. If other, please
explain:
|
| 53 |
What is the average percentage of income receipts
which have actually been collected by the depository from issuers or
paying agents when the credits are made to the participant
accounts?
0
|
Linkages with Other Central
Securities Depositories (CSD) or International Central Securities
Depositories (ICSD) |
| 54 |
Please identify the existence and scope of
electronic processing linkages with foreign depositories or settlement
systems:
Do you have any electronic processing linkages with
foreign depositories or settlement systems?
Yes
No ›› take
you to 63
Other. Please explain in 54a. - then answer 54a
and ›› take you to
63
Not
applicable ›› take you to
63
54a. If other, please
explain:
|
| 55 |
If yes, identify entity, name of CSD or ICSD with
which linkage has been established (if more than one, you will be prompted
to enter their name at the end of this series of
questions):
- then answer 55a
55a. Is
the linkage Unilateral or Bilateral? (For an explanation of unilateral
linkage and bilateral linkage, click on the "Help" button on the tool bar
on the right side of this page.) (Choose all that apply.)
Unilateral - then answer
55b
Bilateral - then answer
55b
Not
applicable
Other - then answer
55l
55b. Does an intermediary provide
interface to depository?
Yes - then
answer 55c
No - then answer
55d
55c. If yes, name
intermediary:
55d.
Is cross listing on the other exchange mandatory for usage of
depository linkages?
Yes - then
answer 55e
No - then answer
55e
55e. Is Delivery-vs.-payment
settlement possible?
Yes
No
Other. Please explain in
55j. - then answer
55j
55f. Is Free-of-payment settlements
required?
Yes
No
Other. Please explain in
55k. - then answer
55k
55k. If other, please
explain:
55g.
Timing of transfers: How are they effected? (Choose all that
apply.)
Batch mode
Real time
Not applicable
Other - then answer
55m
55m. If other, please
explain:
55h.
What is the percentage of all trades settled at your institution with
this CSD or ICSD link?
55i.
Do you have any additional electronic processing linkages with foreign
depositories or settlement systems?
Yes. If so please proceed to next
question.
No ›› take you to
60
Other - then answer
55n
55n. If other, please
explain:
55j.
If other, please explain:
55l.
If other, please explain:
|
| 56 |
If yes, identify entity, name of CSD or ICSD with
which linkage has been established (if more than one, you will be prompted
to enter their name at the end of this series of
questions):
- then answer 56a
56a. Is
the linkage Unilateral or Bilateral? (For an explanation of unilateral
linkage and bilateral linkage, click on the "Help" button on the tool bar
on the right side of this page.) (Choose all that apply.)
Unilateral - then answer
56b
Bilateral - then answer
56b
Not
applicable
Other - then answer
56l
56b. Does an intermediary provide
interface to depository?
Yes - then
answer 56c
No - then answer
56d
56c. If yes, name
intermediary:
56d.
Is cross listing on the other exchange mandatory for usage of
depository linkages?
Yes - then
answer 56e
No - then answer
56e
56e. Is Delivery-vs.-payment
settlement possible?
Yes
No
Other. Please explain in
56j. - then answer
56j
56f. Is Free-of-payment settlements
required?
Yes
No
Other. Please explain in
56k. - then answer
56k
56k. If other, please
explain:
56g.
Timing of transfers: How are they effected? (Choose all that
apply.)
Batch mode
Real time
Not applicable
Other - then answer
56m
56m. If other, please
explain:
56h.
What is the percentage of all trades settled at your institution with
this CSD or ICSD link?
56i.
Do you have any additional electronic processing linkages with foreign
depositories or settlement systems?
Yes. If so please proceed to next
question.
No ›› take you to
60
Other - then answer
56n
56n. If Other, please
explain:
56j.
If other, please explain:
56l.
If other, please explain:
|
| 57 |
If yes, identify entity, name of CSD or ICSD with
which linkage has been established (if more than one, you will be prompted
to enter their name at the end of this series of
questions):
- then answer 57a
57a. Is
the linkage Unilateral or Bilateral? (For an explanation of unilateral
linkage and bilateral linkage, click on the "Help" button on the tool bar
on the right side of this page.) (Choose all that apply.)
Unilateral - then answer
57b
Bilateral - then answer
57b
Not
applicable
Other - then answer
57l
57b. Does an intermediary provide
interface to depository?
Yes - then
answer 57c
No - then answer
57d
Other - then answer
57n
57c. If yes, name
intermediary:
57d.
Is cross listing on the other exchange mandatory for usage of
depository linkages?
Yes - then
answer 57e
No - then answer
57e
Other - then answer
57o
57e. Is Delivery-vs.-payment
settlement possible?
Yes
No
Other. Please explain in
57j. - then answer
57j
57f. Is Free-of-payment settlements
required?
Yes
No
Other. Please explain in
57k. - then answer
57k
57k. If other, please
explain:
57g.
Timing of transfers: How are they effected? (Choose all that
apply.)
Batch mode
Real time
Not applicable
Other - then answer
57m
57m. If other, please
explain:
57h.
What is the percentage of all trades settled at your institution with
this CSD or ICSD link?
57i.
Do you have any additional electronic processing linkages with foreign
depositories or settlement systems?
Yes. If so please proceed to next
question.
No ›› take you to
60
Other - then answer
57p
57p. If other, please
explain:
57j.
If other, please explain:
57o.
If other, please explain:
57n.
If Other, please explain:
57l.
If other, please explain:
|
| 58 |
If yes, identify entity, name of CSD or ICSD with
which linkage has been established (if more than one, you will be prompted
to enter their name at the end of this series of
questions):
- then answer 58a
58a. Is
the linkage Unilateral or Bilateral? (For an explanation of unilateral
linkage and bilateral linkage, click on the "Help" button on the tool bar
on the right side of this page.) (Choose all that apply.)
Unilateral - then answer
58b
Bilateral - then answer
58b
Not
applicable
Other - then answer
58l
58b. Does an intermediary provide
interface to depository?
Yes - then
answer 58c
No - then answer
58d
Other - then answer
58n
58c. If yes, name
intermediary:
58d.
Is cross listing on the other exchange mandatory for usage of
depository linkages?
Yes - then
answer 58e
No - then answer
58e
Other - then answer
58o
58e. Is Delivery-vs.-payment
settlement possible?
Yes
No
Other. Please explain in
58j. - then answer
58j
58f. Is Free-of-payment settlements
required?
Yes
No
Other. Please explain in
58k. - then answer
58k
58k. If other, please
explain:
58g.
Timing of transfers: How are they effected? (Choose all that
apply.)
Batch mode
Real time
Not applicable
Other - then answer
58m
58m. If other, please
explain:
58h.
What is the percentage of all trades settled at your institution with
this CSD or ICSD link?
58i.
Do you have any additional electronic processing linkages with foreign
depositories or settlement systems?
Yes. If so please proceed to next
question.
No ›› take you to
60
Other - then answer
58p
58p. If other, please
explain:
58j.
If other, please explain:
58o.
If other, please explain:
58n.
If other, please explain:
58l.
If other, please explain:
|
| 59 |
If yes, identify entity, name of CSD or ICSD with
which linkage has been established (if more than one, you will be prompted
to enter their name at the end of this series of
questions):
- then answer 59a
59a. Is
the linkage Unilateral or Bilateral? (For an explanation of unilateral
linkage and bilateral linkage, click on the "Help" button on the tool bar
on the right side of this page.) (Choose all that apply.)
Unilateral - then answer
59b
Bilateral - then answer
59b
Not
applicable
Other - then answer
59m
59b. Does an intermediary provide
interface to depository?
Yes - then
answer 59c
No - then answer
59d
Other - then answer
59o
59c. If yes, name
intermediary:
59d.
Is cross listing on the other exchange mandatory for usage of
depository linkages?
Yes - then
answer 59e
No - then answer
59e
Other - then answer
59p
59e. Is Delivery-vs.-payment
settlement possible?
Yes
No
Other. Please explain in
59j. - then answer
59j
59f. Is Free-of-payment settlements
required?
Yes
No
Other. Please explain in
59k. - then answer
59k
59k. If other, please
explain:
59g.
Timing of transfers: How are they effected? (Choose all that
apply.)
Batch mode
Real time
Not applicable
Other - then answer
59n
59n. If other, please
explain:
59h.
What is the percentage of all trades settled at your institution with
this CSD or ICSD link?
59i.
Do you have any additional electronic processing linkages with foreign
depositories or settlement systems?
Yes. If so please proceed to next
question. - then answer
59l
No ›› take you to
60
Other - then answer
59q
59l. If yes, please prepare and
upload a document with the additional information here:
59q. If other,
please explain:
59j.
If other, please explain:
59p.
If other, please explain:
59o.
If other, please explain:
59m.
If other, please explain:
|
| 60 |
What governs the relationship in cross-system
settlements? (Choose all that apply.)
Negotiated terms and conditions of participation between the
depositories
By-laws of each
depository
Standard
participation contracts with users of cross-system services
Laws of the jurisdiction where settlement
occurs
Other - then answer 60a
60a.
Please explain:
|
| 61 |
Are procedures and controls (firewalls) in place to
avoid systemic collapse or contamination if one of the linked entities
should experience business interruptions for whatever reason?
Yes - then
answer 61a
No - then answer
61a
Other - then answer
61a
Not
applicable
61a. Please
explain:
|
| 62 |
Has a business interruption recovery plan been
developed in the event the linkages should become inoperable for any
reason?
Yes
No
Other - then
answer 62a
Not applicable
62a. If other,
please explain:
|
ACCOUNT STRUCTURES AND
RECORDKEEPING
The purpose of this section is to identify
the nature of accounts; the naming convention employed, the level of
segregation achieved, accessibility in the event of bankruptcy and the
frequency of reporting generated from them. |
| 63 |
Are participants permitted to maintain more than
one account at the depository?
Yes - then
answer 63a
No
Not applicable
Other - then
answer 63d
63a. If yes, please indicate
number (Choose one.):
An unlimited number of accounts.
More than one
account, if so please indicate below how many. - then answer 63b
Other (e.g., subaccounts). - then answer 63c
63b. If
more than one account what is the maximum?
99.
63c.
If other, please explain:
63d.
If other, please explain:
|
| 64 |
Are participants required/permitted to segregate
assets held for their own benefit from those they hold for their clients?
Yes - then
answer 64a
No
Not applicable
Other - then
answer 64d
64a. If yes, is segregation
required or simply permitted?
Required -
then answer 64b
Permitted -
then answer 64b
Other - then answer
64e
64b. How does segregation occur?
(Choose all that apply.)
By separately designated participant accounts.
By sub-accounts within a single participant
account.
By separately
designated beneficial owner accounts.
Other (e.g., share registration). - then answer 64c
64c. If
other, please explain:
64e.
If other, please explain:
64d.
If other, please explain:
|
| 65 |
Does the depository permit its participants to open
accounts in the participant's own nominee name(s)?
Yes - then
answer 65a
No
Other. Please explain in 65b. - then answer 65b
Not
applicable
65a. If “Yes”, do laws exist
which acknowledge the rights of beneficial owners with respect to shares
registered in nominee name?
Yes
No
65b. If
other, please explain:
|
| 66 |
In the event a participant's single account is
blocked for any reason (e.g., insolvency, penalties, violations, liens),
would securities held in the account on behalf of the participant's
clients be accessible:
66a. By the
participant's clients?
Yes - then
answer 66b
No
Not applicable.
Other - then
answer 66i
66b. If yes, please describe
briefly how clients of participants would access their holdings and
whether there would be any delay in their ability to do so:
The law recognizes legal actions on
behalf of the beneficiary to claim for their
securities.
66i. If other, please
explain:
66c.
By the intervening authorities controlling insolvency or other
proceedings?
Yes - then
answer 66d
No
Not applicable.
Other - then
answer 66j
66d. If yes, please describe
briefly under what conditions access would be granted to the intervening
authorities:
The
intervening authorities have access to the accounts only for inventory
purposes and then re-distribution of the securities belonging to the
beneficiary.
66j. If other, please
explain:
66e.
By the participant's creditors?
Yes - then
answer 66f
No
Not applicable.
Other - then
answer 66k
66f. If yes, please describe
briefly under what conditions access would be granted to the participant’s
creditors:
66k.
If other, please explain:
66g.
By the depository's creditors?
Yes - then
answer 66h
No
Not applicable.
Other - then
answer 66l
66h. If yes, please describe
briefly under what conditions access would be granted to the depository’s
creditors:
66l.
If other, please explain:
|
| 67 |
In what form does the depository maintain records
identifying the assets of each participant? (Choose all that apply.)
(Please refer to "Help" for clarification.)
Computer file - then
answer 67b
Microfiche - then answer
67b
Hard
copy - then answer 67b
Computer tape - then answer 67b
Other - then answer
67a
67a. If other, please
explain:
67b.
In which format is the source data maintained?
Data base
format.
|
| 68 |
Rule 17f-7 requires that an Eligible Securities
Depository “provides periodic reports to its participants with respect to
its safekeeping of assets, including notices of transfers to or from any
participant’s account.”
Does the depository provide periodic
safekeeping reports to participants, including notices of transfers to or
from the participant’s account?
Yes - then
answer 68b
No (You will be asked to confirm whether you want to move on to 70
in advance of answering subquestion 68a, do not be alarmed as it will
allow you to answer 68a before moving on.) - then answer 68a
and ›› take you to
70
Other - then answer
68a
68a. If no or other, please
explain:
68b.
If yes, please indicate the scheduled frequency: (Choose one.)
Daily.
Weekly.
Monthly.
Quarterly.
Annually.
Upon Request.
Other. - then answer 68c
68c. If
other, please explain:
|
| 69 |
What is your document retention policy for
documents described in previous question? (Choose one.)
6 months or less.
1 year.
3 years.
5 years.
7 years.
Other. - then answer
69a
69a. If other, please
explain:
The
information regarding safekeeping and transfers to or from participant’s
accounts are kept for ever.
|
SETTLEMENTS
The purpose of
this section is to identify the model of settlement employed, the
relationship between cash and securities, and the basis on which
participants’ meet their obligations. |
| 70 |
The Committee on Payment and Settlement Systems of
the Bank for International Settlements (BIS) has identified three common
structural approaches or models for linking delivery and payment in a
securities settlement system. Please indicate which model your procedures
most closely resemble (Please refer to details on the models within the
"Help" feature connected with this question): (Choose all that
apply.)
Model 1 - Gross, Simultaneous Settlements
of Securities and Funds Transfers. - then
answer 70a
Model
2 - Gross Settlements of Securities Transfers Followed by Net Settlement
of Funds Transfers. - then answer
70a
Model 3 -
Simultaneous Net Settlement of Securities and Funds
Transfers. - then answer
70a
Not
applicable
Other - then answer
70b
70a. How do your settlement
procedures vary from the model chosen above?
It doesn’t vary from the model
chosen above. Although model 2 is the most popular, we do on various
occasions use model 3 (stocks).
70b. If
other, please explain:
|
| 71 |
Are the cash and security movements
simultaneous?
Yes
No - then
answer 71a
Not applicable
Other - then
answer 71c
71a. If cash and security
movements are not simultaneous, please indicate the duration of the timing
gap: (Choose one.)
1 hour or less
2 hours
3 hours
4 hours
5 hours
Overnight
2 days
Other - then answer
71b
71b. If other, please
explain:
71c.
If other, please explain:
|
OWNERSHIP OF SECURITIES
The
purpose of this section is to determine how ownership of securities is
represented, the ways the depository maintains ownership or control of
securities held in the depository, and the extent to which ownership of
assets held by the depository is separated from the proprietary assets of
the depository. This section also considers the process by which the
ownership of securities is transferred in the depository and the existence
of any liens or claims on depository securities (such as a clearing lien)
that would affect the ownership of depository securities. |
| 72 |
How are depository eligible securities held by the
depository?
Securities in the depository are held in
certificated form. - then answer
72b
Securities in the
depository are held in dematerialized form. (You will be asked to confirm
whether you want to move on to 74 in advance of answering subquestion 72c,
do not be alarmed as it will allow you to answer 72c before moving
on.) - then answer 72c
Other. - then answer 72a
72a. If
other, please explain and identify percentage issued of total depository
holdings:
Seventy
percent of securities in the depository are dematerialized and the
remainder are immobilized.
72b. If held in
certificated form, please indicate next to the type of security the
percentage of the depository's total issues that each security represents.
(Please provide numeric answer.)
Government Securities in jumbo certificate
form
Equities in jumbo
certificate form
Corporate
Bonds in jumbo certificate form
Corporate Money Markets in jumbo certificate
form
Government Securities
in individual certificate form
Equities in individual certificate
form
Corporate Bonds in
individual certificate form
Corporate Bonds in individual certificate
form
Corporate Money Markets
in individual certificate form
Other - please explain in
72d.
72d. If other, please
explain:
72c.
If held in dematerialized form, please indicate next to the type of
security the percentage of the depository's total issues that each
security represents. (Please provide numeric answer.)
Government Securities
Equities
Corporate Bonds
Corporate Money Markets
Other - please explain in
72e.
72e. If other, please
explain:
|
| 73 |
If depository eligible securities are certificated,
can depository eligible securities be held outside of the
depository?
All eligible securities must be held in
the depository. - then answer
73b
Securities
may move freely into and out of the depository. - then answer 73g
Once entered into the depository, eligible securities must remain
in the depository. - then answer
73b
Certain designated
securities may be held outside the depository. - then answer 73a
Not Applicable.
Other - then answer
73j
73a. If certain designated
securities are held outside the depository, please indicate under which
conditions these securities would be held outside the
depository:
73b.
If depository eligible securities are required to be centrally
immobilized at the depository, where and with whom are the certificates
safekept?
- then answer 73c
73c.
Are these certificates:
Bearer
Registered -
then answer 73d
Other - then answer
73k
73d. If registered, how are the
depository eligible securities registered? (Do not be alarmed, the last
two options will prompt you to ask whether you wish to proceed to 75
before allowing you to answer the subquestion but you will be given the
opportunity to answer the subquestion before continuing).
In the name of the depository.
In the name of the depositing participant or its
nominee.
In the name of a
separate nominee of the depository. - then
answer 73f
Other. - then answer
73e
73e. If other, please
describe:
73f.
If in the name of a separate nominee, please identify by name the
nominee used:
73k.
If other, please explain:
73g.
If depository eligible securities may be held either in or out of the
depository, are these certificates:
Bearer - then answer
73h
Registered - then answer
73h
Other. Please explain
in 73i. - then answer
73i
73h. What are the control features
for receipt of certificates to the depository (e.g., authentication
procedures, re-registration)? Please describe:
Authentication procedures and asking
to the issuer.
73i. If other, please
explain:
73j.
If other, please explain:
|
| 74 |
If securities are dematerialized:
May
dematerialized security positions be re-certificated and held outside the
depository?
Yes - then
answer 74a
No - then answer
74a
Not
Applicable
Other - then answer
74j
74a. Are the securities held:
(Choose all that apply.)
Through book-entry at the depository
Through book-entry at a registrar or
issuer - then answer 74b
Other -
then answer 74k
74b. Please identify
which types of entities may act as registrars: (Choose all that
apply.)
Issuers
Separate companies that perform registrar functions
Depository
Other - then answer
74c
74c. Please explain:
74d.
If the securities held by the depository are recorded by book entry at
the registrar, are the securities registered only to the depository, with
the depository providing the function of recording ownership on a
centralized basis for the market? (Choose all that apply.)
Yes - then answer
74e
No - then answer 74g
Other - then answer
74l
74e. If yes, how are securities
held at the registrar for the account of the depository? (Choose one.)
In the name of the depository
In the name of a separate
nominee of the depository
Other - then
answer 74f
74f. Please
describe:
74g.
If the securities held with the depository are recorded by book-entry
at the registrar but are not registered exclusively to the depository, may
they be registered to:
The beneficial owner
A
nominee
Other - then answer 74h
74h.
Please describe:
74i.
If the securities held with the depository are recorded by book-entry
at the registrar, what are the control features at the registrar for
transfer of registrar positions to and from the depository (e.g.,
authentication procedures, reconciliation, confirmation of position at
registrar)? Please describe:
74l.
If other, please explain:
74k.
If other, please explain:
74j.
If other, please explain:
|
| 75 |
Rule 17f-7 requires that an Eligible Securities
Depository “maintains records that identify the assets of each participant
and segregate the system’s own assets from the assets of
participants.”
Does the depository maintain records that identify
the assets of each participant and segregate the system's own assets from
the assets of participants?
Yes
No
Not applicable - then answer 75a
Other - then
answer 75a
75a. If other, please
explain:
|
| 76 |
Does the law protect participant assets from claims
and liabilities of the depository?
Yes
No
Not applicable
Other - then answer 76a
76a. If
other, please explain:
|
| 77 |
Can the depository assess a lien on participant
accounts? (A lien would entitle the depository to take and hold or sell
the securities of the participant in payment of a debt.)
Yes - then
answer 77a
No
Not applicable
Other - then
answer 77l
77a. If yes, for what
reasons are liens or similar claims imposed? (Choose all that
apply.)
Fees and expenses
Collateralization of overdrafts
To secure payment for purchased securities
Other - then answer 77b
77b.
Please describe:
If
the participant doesn’t want to recognize that he deposited certificates
not valid to the issuer or registrar. Also if the security is deposited
with some restrictions or prohibitions.
77c.
Please indicate the limits of this lien as indicated below: (Choose
one.)
The lien is limited to securities in the
participant’s proprietary account.
The lien is limited to securities in the course of
purchase and sale transactions, but does not extend to settled
positions.
The lien may extend to settled client
positions. - then answer
77d
Other.
Please explain in 77d. - then answer
77d
77d. Please explain:
77e.
If a lien is placed on a participant’s account which has been
designated for its clients, will the depository select certain securities
to be subject to the lien?
Yes - then
answer 77f
No - then answer
77h
Other - then answer
77m
77f. If yes, please indicate
whether: (Choose one.)
the lien is placed on the most liquid securities
in the account
the lien is placed on the securities with the greatest value in the
account
other selection criteria is used. - then answer 77g
77g.
Please explain:
77h.
If no, please indicate whether the entire account will be subject to
the lien.
Yes
No
Other - then
answer 77n
77n. If other, please
explain:
77i.
For accounts designated as client accounts, do procedures exist to
restrict the placement of liens only to obligations arising from safe
custody and administration of those accounts?
Yes - then
answer 77j
No
Other - then answer
77o
77j. If yes, are the restrictions
accomplished by:
contract between the depository and the
participant
other procedures - then
answer 77k
77k. Please
explain:
77o.
If other, please explain:
77m.
If other, please explain:
77l.
If other, please explain:
|
| 78 |
Transfer of Legal Ownership
Does the
depository have legal authority to transfer title to securities?
Yes - then
answer 78a
No
Not applicable
Other - then
answer 78e
78a. When does title or
entitlement to depository securities pass between participants? (Choose
one.)
At the end of the business day on which the
transfer occurs. - then answer
78c
When corresponding money or other consideration is
transferred. - then answer
78c
When
the transaction is processed on an intra-day
basis. - then answer
78c
Other. - then answer
78b
78b. Please describe:
78c.
Where does title or entitlement to depository securities pass between
participants? (Choose one.)
On the depository books.
On the registrars
books.
Other. - then answer
78d
78d. Please describe:
78e.
If other, please explain:
|
HANDLING OF SECURITIES OUTSIDE THE
DEPOSITORY ENVIRONMENT
The purpose of this section is to
consider the process (and any risk inherent within such a process) that
involves the safekeeping of client assets while they are being removed
from a depository or being lodged into a depository. |
| 79 |
How are eligible securities lodged in the
depository system? (Choose all that apply.)
A registered certificate in the name of the depository is
delivered to the depository.
A participant delivers the security with a valid transfer deed or
stock power or other transfer document to the depository which then
effects registration.
A
registrar re-registers the security in the name of the
depository.
Other. - then answer
79a
Not
applicable
79a. Please describe:
|
| 80 |
When are securities lodged into the depository
reflected in a participant's depository account? (Choose all that
apply.)
Securities are reflected in the
participant's depository account immediately upon delivery to the
depository.
Securities are
re-registered prior to being reflected in the participant’s depository
account.
Other. - then answer
80a
Not
applicable
80a. Please explain:
Stocks are re-registered, the other
securities are reflected in the accounts
immediately.
|
| 81 |
How long does it usually take to lodge securities
with the depository? (Choose one.)
1 to 2 days.
3 days to 1 week.
2 to 4 weeks.
More than 4
weeks. - then answer
81a
Not
applicable.
Other. Please explain in 81b. - then answer 81b
81a.
Please specify:
81b.
If other, please explain:
|
| 82 |
During the process of lodging securities into the
depository, can the securities:
Be traded?
Yes
No - then
answer 82c
Not applicable
Other - then
answer 82c
82a. During the process of
lodging securities into the depository, can the securities:
Be
settled?
Yes
No - then
answer 82d
Not applicable
Other - then
answer 82d
82b. During the process of
lodging securities into the depository, can the securities:
Have
ownership transferred?
Yes
No - then
answer 82e
Not applicable
Other - then
answer 82e
82e. If ownership can not be
transferred, or if you answered other, please explain:
Ownership can be transferred only if
the securities are registered in the participant’s
accounts.
82d. If they can not be settled,
of if you answered other, please explain:
They can be settled only if the
securities are registered in the participant’s
accounts.
82c. If they can not be traded,
or if you answered other, please explain:
|
| 83 |
Are securities immediately available for delivery
upon transfer to the depository?
Yes
No - then
answer 83a
Not applicable
Other - then
answer 83d
83a. If no: Securities are
unavailable for:
1 to 2 days
3 days to 1 week
2 to 4 weeks
More than 4
weeks - then answer
83b
Other.
Please explain in 83c. - then answer
83c
83b. If more than 4 weeks, please
specify:
83c.
If other, please explain:
83d.
If other, please explain:
|
| 84 |
Are eligible securities held through the depository
afforded the same or greater efficiencies as securities held outside the
depository with respect to:
84a.
Income? (Choose one.)
Not applicable
No - then answer 84b
Yes - for all instrument
types
Yes -
for the following instrument types only: - then answer 84c
Other - then
answer 84b
84b. Please
explain:
84c.
Name instrument types:
84d.
Corporate actions?
Not applicable
No - then answer 84e
Yes - for all instrument
types
Yes -
for the following instrument types only: - then answer 84f
Other - then
answer 84e
84e. Please
explain:
84f.
Name instrument types:
84g.
Proxy Services?
Not applicable
No - then answer 84h
Yes - for all instrument types
Yes - for the following
instrument types only - then answer
84i
Other - then answer
84h
84h. Please explain:
84i.
Name instrument types:
|
| 85 |
Can securities held outside of the
depository:
85a. Be
traded without being lodged at the depository?
No - then
answer 85b
Not applicable
Yes
Other - then
answer 85b
85b. Please
explain:
85c.
Be settled without being lodged at the depository?
No - then
answer 85d
Not applicable
Yes - then
answer 85e
Other - then answer
85d
85d. Please explain:
The shares can be settled only if
they are lodged at the depository. The others securities can be settled
without being lodged at the depository.
85e.
If yes, do settlements of depository-eligible securities occurring
outside the depository take longer to settle?
Yes
No
Not applicable
Other - then answer 85h
85h. If
other, please explain:
85f.
Have ownership transferred without being lodged at the depository?
No - then
answer 85g
Not applicable
Yes
Other - then
answer 85g
85g. Please
explain:
|
| 86 |
How are eligible securities removed from the
depository? (Choose one.)
Securities are re-registered into the name of the
beneficial owner or a nominee.
Securities are re-certificated and re-registered
into the name of the beneficial owner or a nominee.
Securities are
re-certificated and delivered as bearer instruments.
Securities are transferred as
is any physical delivery in the market.
Other - then answer 86a
Not
applicable
86a. Please
specify:
Stocks are
re-registered into the name of the beneficial owner. The others securities
are transferred as is any other physical delivery in the
market.
|
| 87 |
How long does it usually take to remove securities
from the depository? (Choose one.)
1 to 2 days
3 days to 1 week
2 to 4 weeks
More than 4
weeks - then answer
87a
Not
applicable
Other. Please explain in 87b. - then answer 87b
87a.
Please specify:
87b.
If other, please explain:
|
| 88 |
While the securities are being removed from the
depository, can they:
88a. Be
traded? (Choose one.)
No - then
answer 88b
Not applicable
Yes
Other - then
answer 88b
88b. Please
explain:
88c.
Be settled?
No - then
answer 88d
Not applicable
Yes
Other - then
answer 88d
88d. Please
explain:
The securities
are blocked in a holding account.
88f.
Have ownership transferred?
No - then
answer 88g
Not applicable
Yes
Other - then
answer 88g
88g. Please
explain:
The securities
are blocked in a holding account.
|
| 89 |
Where are securities that are outside the
depository held in safekeeping? (Choose all that apply.)
Securities are dematerialized; ownership of
securities is identified through the records of the company
registrar.
Securities
are held physically, registered on behalf of the beneficial owner or a
nominee and physically safekept by subcustodian banks.
Securities are held physically in bearer
form in subcustodian banks.
Securities may be held physically by brokers, the registrar, or
beneficial owner.
Other - then answer
89a
Not
applicable
89a. Please specify:
|
STANDARD OF CARE
The purpose
of this section is to understand the responsibility and liability that the
depository has in providing services to its participants/members in the
settlement and clearing of securities and/or cash, and to understand what
type of protections exist for participants in the event of a participant
failure/default.
Depository Liability |
| 90 |
Does the depository accept liability (independent
of any insurance coverage) for the following:
90a.
Reconciliation errors with the registrar and/or issuer?
No
Not applicable
Yes - then answer 90b
Other - then
answer 90q
90b. If yes, please check
all of the following that apply:
Financial limits are imposed on the amount of liability assumed by
the depository
The
depository assumes liability for direct losses
The depository assumes liability for indirect or
consequential losses
Other - then answer
90y
90y. If other, please
explain:
90q.
If other, please explain:
90c.
Theft of securities (either physical certificate or electronically from
accounts at the depository) from the depository?
No
Yes - then
answer 90d
Not applicable.
Other - then
answer 90r
90d. If yes, please check
all of the following that apply:
Financial limits are imposed on the amount of liability assumed by
the depository
The
depository assumes liability for direct losses
The depository assumes liability for indirect or
consequential losses
Other - then answer
90z
90z. If other, please
explain:
90r.
If other, please explain:
90e.
Failure of the depository’s systems that result in direct damages or
losses to participants because they cannot use either securities or
funds?
No
Yes - then
answer 90f
Not applicable.
Other - then
answer 90s
90f. If yes, please check
all of the following that apply:
Financial limits are imposed on the amount of liability assumed by
the depository
The
depository assumes liability for direct losses
The depository assumes liability for indirect or
consequential losses
Other - then answer
90{
90{. If other, please
explain:
90s.
If other, please explain:
90g.
Any loss caused by the depository due to errors, omissions or fraud
that cause direct damages or losses to participants?
No
Yes - then
answer 90h
Not applicable.
Other - then
answer 90t
90h. If yes, please check
all of the following that apply:
Financial limits are imposed on the amount of liability assumed by
the depository
The
depository assumes liability for direct losses
The depository assumes liability for indirect or
consequential losses
Other - then answer
90|
90|. If other, please
explain:
90t.
If other, please explain:
90i.
The depository acting as the central counterparty?
No
Not applicable
Yes - then answer 90j
Other - then
answer 90u
90j. If yes, please check
all of the following that apply:
Financial limits are imposed on the amount of liability assumed by
the depository
The depository
assumes liability for direct losses
The depository assumes liability for indirect or consequential
losses
Other - then answer 90}
90}. If
other, please explain:
90k.
Does the depository guaranty settlement?
No
Yes - then
answer 90l
Not applicable.
Other - then
answer 90v
90l. Please explain how this
is accomplished. What are the procedures and safeguards that permit the
depository to guaranty settlement?
90v.
If other, please explain:
90u.
If other, please explain:
90m.
Force majeure events, acts of God, or political events, etc.?
No
Yes - then
answer 90n
Not applicable.
Other - then
answer 90w
90n. If yes, please check
all of the following that apply:
Financial limits are imposed on the amount of liability assumed by
the depository
The depository
assumes liability for direct losses
The depository assumes liability for indirect or consequential
losses
Other - then answer 90~
90~. If
other, please explain:
90w.
If other, please explain:
90o.
In all cases where the depository assumes responsibility for direct or
indirect or consequential losses, is the depository’s liability limited by
a standard of care determination?
No
Yes - then
answer 90p
Not applicable
Other - then
answer 90x
90p. Please define the
standard of care applied:
90x.
If other, please explain:
|
| 91 |
Do the depository’s written contracts, rules, or
established practices and procedures provide protection against risk of
loss of participant assets by the depository in the form
of?
91a.
Indemnification
Yes - then
answer 91b
No
Other - then answer
91b
Not
applicable
91b. Please
explain:
- then answer 91i
91i.
Please provide details of the relevant sections of the contracts, rules
or practices where this information is found.
91c.
Insurance
Yes - then
answer 91d
No
Other - then answer
91d
Not
applicable
91d. Please
explain:
- then answer 91j
91j.
Please provide details of the relevant sections of the contracts, rules
or practices where this information is found.
91e.
Acknowledgement of liability for losses caused by depository's own
actions.
Yes - then
answer 91f
No
Other - then answer
91f
Not
applicable
91f. Please
explain:
- then answer 91k
91k.
Please provide details of the relevant sections of the contracts, rules
or practices where this information is found.
91g.
Other
Yes - then
answer 91h
No
91h. Please
explain:
Our contracts,
internal rules and regulations (law 18.876) stipulate that the depository
shall be held responsible for any loss of participant’s
assets.
- then answer
91l
91l. Please provide details of the
relevant sections of the contracts, rules or practices where this
information is found.
Clause 4th and 5th of the contract;
chapter 2.2 of the depository internal regulation; articles 15th, 27th and
28th of the law 18876.
|
| 92 |
Is the depository immune from legal action in its
own jurisdiction?
Yes
No
Other - then
answer 92a
92a. If other, please
explain:
|
Security Control |
| 93 |
How do participants receive information (view
actual settlement of trades, movement of securities on their accounts,
etc.) and see the status of their accounts? (Choose all that
apply.)
By direct electronic
link
By receipt of
physical account holding statements
Other - then answer
93a
Not
applicable
93a. Please explain:
|
| 94 |
Do participants have access to affect their
holdings, including confirming and affirming trades, movement of
securities on their accounts, etc.?
Yes - then
answer 94a
No
Other. Please explain in 94d. - then answer 94d
Not
applicable
94a. How is access given to
participants? (Choose all that apply.)
By direct electronic link - then answer 94b
Other - then answer
94c
94b. Please select type of
electronic link:
Dial-up modem
Secured, leased, dedicated telephone line
Internet
Fax
94c. Please explain:
94d.
If other, please explain:
|
| 95 |
Regarding data security:
95a. Are
passwords used by participants to access their accounts?
Yes
No
Not applicable
Other - then answer 95g
95g. If
other, please explain:
95b.
Does each user have a unique user ID?
Yes
No
Not applicable
Other - then answer 95h
95h. If
other, please explain:
95c.
Are passwords regularly changed?
Yes - then
answer 95d
No
Not applicable
Other - then
answer 95i
95d. How often?
Every 90
days.
95i. If other, please
explain:
95e.
Is there a user lock-out after a pre-set number of unsuccessful User ID
attempts?
Yes - then
answer 95f
No
Not applicable
Other - then
answer 95j
95f. How many?
5
95j.
If other, please explain:
|
| 96 |
Does the depository communicate with other market
entities such as stock exchanges, payment systems, clearing houses, etc.,
by secured linkages?
Yes - then
answer 96a
No ›› take you to
98
Not
applicable ›› take you to
98
Other - then answer
96a
96a. Please explain:
The depository communicate with
stock exchanges and issuers.
|
| 97 |
How does the depository communicate with other
market entities?
97a. Stock
Exchanges (Choose all that apply.)
Dial-up modem
Secured, leased, dedicated telephone line
Internet
Fax
Paper/other
Not
applicable
97b. Payment Systems (Choose all
that apply.)
Dial-up modem
Secured, leased, dedicated telephone line
Internet
Fax
Paper/other
Not
applicable
97c. Clearing Houses (Choose all
that apply.)
Dial-up modem
Secured, leased, dedicated telephone line
Internet
Fax
Paper/other
Not
applicable
97d. Are there any other
entities?
Yes - then
answer 97e
No
97e. Please
identify:
Issuers (or
institution designated by the issuers) of the securities held in the
depository.
- then answer
97f
97f. How does the depository
communicate with this/these other market entity/entities? (Choose all that
apply.)
Dial-up modem
Secured, leased, dedicated telephone line
Internet
Fax
Paper/other
|
| 98 |
How is access to the physical building controlled?
(Choose all that apply.)
By guards
By electronic keys/personal ID card
By alarm system
Other - then answer
98a
98a. Please explain:
CCTV; movement
sensors.
|
| 99 |
What are the vault security procedures for the
safekeeping of physical paper? (Choose all that apply.)
Not applicable; no vault is maintained
Electronic keys/combinations
Dual access control
Visitor logs
Vault counts - then
answer 99a
Intrusion alarms
Fire alarms
Guards
Other - then answer
99b
99a. Please indicate frequency of
vault counts:
6 times a
year. Each time 6.000 titles.
99b. Please
explain:
System against
flood.
|
Participant Default
Protections Resulting from a Participant Failure |
| 100 |
If a participant defaults, how is the loss covered?
(Choose all that apply?)
Depository insurance covers the loss - then answer 100a
The depository guaranty fund covers the loss
Loss is shared among participants - then answer 100b
Other - then answer
100c
Not
applicable
100a. Please explain the
process:
100b.
Please explain the process of how the loss is shared: (Choose one.)
Equally, among participants
Pro-rata based on
participant's volume
Limited to participants with transactions with
failing counterparty
Other - then
answer 100d
100d. If other, please
explain:
100c.
Please explain:
The
depository assures delivery of the securities versus payment of the
cashier check. The cashier checks are issued against available funds in
the buyer’s account. Once the check is issued, these funds are retained by
the bank. These documents have the guarantee of the Central Bank of
Chile.
|
| 101 |
During the past three years, has there been a
situation where a participant defaulted which resulted in a significant
loss?
Yes - then
answer 101a
No
Not applicable
Other - then answer 101a
101a.
How was the situation resolved? Or if you answered "Other," then please
explain:
|
| 102 |
Does the depository have a guaranty fund
independent of stock exchange or other market guarantees?
Yes - then
answer 102a
No ›› take
you to 103
Not applicable ›› take you to
103
Other - then answer
102l
102a. If yes, please respond to
the following questions:
What is the size of the fund?
- then answer 102b
102b.
How is the size of the fund determined? (Choose one.)
By participant volume
By asset value
A fixed
amount
Other - then answer
102f
102f. If other, please
explain:
102c.
How is the fund financed? (Choose one.)
Contributions from owners - then answer 102g
Contributions from
participants - then answer
102h
Funding from retained earnings
Other - then answer 102i
102g.
If so, what is the amount or percentage per owner?
102h.
If so, what is the amount or percentage per participant?
102i.
If other, please explain:
102d.
Who is covered by the fund? (Choose all that apply.)
Direct depository participants only
The beneficial owner also
Other - then answer
102j
102j. If other, please
explain:
102e.
When is the guaranty fund used? (Choose all that apply.)
When a broker defaults
When a direct participant defaults
Other - then answer
102k
102k. If other, please
explain:
102l.
If other, please explain:
|
| 103 |
Does the depository have forms of oversight
management for assessing and monitoring of the following? (Choose all that
apply.)
Participant eligibility
requirements
Participant
volumes
Participant financial
strength
Other loss or default
protections the depository maintains - then
answer 103a
Collateral
requirements for participants - then answer
103b
Debit caps for
participants - then answer
103c
Settlement
controls that minimize or eliminate the risk of default by a
participant - then answer
103d
Blocking of
securities movement before receipt of payment
Blocking payment until securities are
moved
Other forms of risk
management used for assessing and monitoring participant
exposures - then answer
103e
Not
applicable
103a. Please explain other loss or
default protections:
103b.
Please explain the requirements:
103c.
Please explain how these debit caps work:
103d.
What type or types of settlement controls (Choose all that
apply.)
Blocking or freezing of securities
positions - then answer
103f
Controlling
DVP settlement - then answer
103g
Simultaneous
DVP - then answer 103h
Other -
then answer 103i
103f. Please
explain:
After
registering the trade in the depository system and before the settlement,
the securities position stay in a holding
account.
103g. Please
explain:
1. Buyer goes
to the seller and pays the trades with a cashier check. The cashier checks
are issued against available funds in the buyer’s account. Once the check
is issued, these funds are retained by the bank. These documents have the
guarantee of the Central Bank of Chile. 2. Seller receives the payment and
registers this in the depository system. 3. Securities are transferred to
the buyer account.
103h. Please
explain:
103i.
Please identify and explain:
103e.
Please explain briefly how these work:
|
| 104 |
Does the stock exchange have default protections
that extend to the depository, such as the following? (Choose all that
apply.)
Margin requirements for stock exchange
members
Guaranty fund for stock
exchange members
Financial
requirements for stock exchange membership
Other - then answer
104a
No
Not
applicable
104a. Please explain:
|
BUSINESS RECOVERY PLAN
This
section is intended to identify key aspects of the depository’s Business
Recovery Plan ("BRP"), including testing requirements and past results,
expected recovery time periods, and the independent review and validation
(if any) of the BRP. |
| 105 |
Do you have a formal business recovery plan?
Yes - then
answer 105a
No
Other - then answer
105g
105a. Does your Business Recovery
Plan include: (Choose all that apply.)
Back-up of all computer files
Off-site data storage
Back-up files stored and locked
Off-site operations facility
Other -
then answer 105h
105b. Please identify
both the frequency of testing and the last date of testing for the
following third Party:
Depository Participants/Members
Every 3
months.
105c. Please identify both the
frequency of testing and the last date of testing for the following third
Party:
Stock Exchange
Every 3
months.
105d. Please identify both the
frequency of testing and the last date of testing for the following third
Party:
Central Bank
Every 3
months.
105e. Please identify both the
frequency of testing and the last date of testing for the following third
Party:
Local Brokers
Every 3
months.
105f. Please identify both the
frequency of testing and the last date of testing for the following third
Party:
any Other third Party
Issuers, every 3
months.
105h. If other, please
explain:
105g.
If other, please explain:
|
| 106 |
How quickly can the main system be reactivated in
the event of an outage? (Choose one.)
1 - 4 hours
4 - 8 hours
8 - 24 hours
Longer than 24 hours
Not
applicable
Other - then answer
106a
106a. If other, please
explain:
|
| 107 |
If a back-up system exists, how quickly can the
back-up system be activated in the event of the main system failing?
(Choose one.)
1 - 4 hours
4 - 8 hours
8 - 24 hours
Longer than 24 hours
Not
applicable
Other. Please explain in 107a. - then answer 107a
107a.
If other, please explain:
|
| 108 |
Will the depository publicly announce any system
interruption?
Yes - then
answer 108a
No ›› take you to
109
Not
applicable
Other - then answer
108g
108a. To whom will the depository
disclose any system interruptions? (Choose all that apply.)
To the depository regulators
To all direct participants
To direct and indirect participants
To the public via the
internet - then answer
108c
In the
press - then answer 108d
Other -
then answer 108e
108b. How will the
depository disclose any system interruptions? (Choose all that
apply.)
By e-mail
By telephone
Public announcement
Press release
Other - then answer
108f
108f. Please explain:
By
letter.
108c. If so, please list webpage
address:
108d. If so, please
list publications:
108e.
Please explain:
108g.
If other, please explain:
|
| 109 |
In the past three years, has it been necessary to
activate the recovery plan in a live situation?
Yes - then
answer 109a
No
Not applicable
Other - then
answer 109d
109a. If yes:
How
much time was needed to implement the recovery plan? (Choose one.)
Less than 1
hour - then answer
109b
1 - 2
hours - then answer
109b
2 - 4
hours - then answer
109b
Longer than 4 hours - then
answer 109b
109b. How much time was
needed to recover and restore business to normal operations? (Choose
one.)
1 - 4 hours - then answer 109c
4 - 8 hours - then answer 109c
8 - 24 hours - then answer 109c
Longer than 24 hours - then answer 109c
109c.
What was the impact to the market? (Choose all that
apply.)
All securities settlements took place as
scheduled on the same day with good value
All cash settlements took place as scheduled on the
same day with good value
All
securities settlements took place one business day late with good
value
All cash settlements took
place one business day late with good value
All securities settlements took place one business
day late with value one day late
All cash settlements took place one business day late with value
one day late
All securities
settlements took place more than one business day late
All cash settlements took place more than one
business day late
As a result of
the system failure, all fines and penalties for late settlements were
waived
Even though there was a
system failure, all fines and penalties for late settlements were still
assessed
Other - then answer 109e
109e.
If other, please explain:
109d.
If other, please explain:
|
PERFORMANCE, INSURANCE AND
LOSS
This section is intended to identify the level of
insurance maintained by the depository, and the extent to which coverage
would extend to financial loss incurred by participants and their clients,
including but not limited to losses resulting from operating performance,
security breaches, and employee negligence or misconduct. |
| 110 |
Has there been any material loss by the depository
during the past three years?
Yes - then
answer 110a
No
Other. Please explain in
110b. - then answer
110b
Not
applicable
110a. If there has been a
loss, please describe the cause, the final impact and the action taken to
prevent a recurrence:
110b.
If other, please explain:
|
| 111 |
Has the depository been subject to any litigation
involving a participant during the past three years?
Yes - then
answer 111a
No
Other. Please explain in
111b. - then answer
111b
Not
applicable
111a. Please explain the
circumstances and resolution:
111b.
If other, please explain:
|
| 112 |
Has the depository realized revenues sufficient to
cover expenses during the past three years? (Choose one.)
Yes for all three years
Yes for two of the last
three years
Yes for one of the last three years
None of the last three
years
Not
applicable
Other - then answer
112a
112a. If other, please
explain:
|
| 113 |
Does the depository maintain a reserve for
operating losses?
Yes - then
answer 113a
No
Not applicable
Other - then answer 113b
113a.
Please describe and indicate reserve amount:
113b.
If other, please explain:
|
| 114 |
Has the regulatory body with oversight
responsibility for the depository issued public notice that the depository
is not in current compliance with any capital, solvency, insurance or
similar financial strength requirements imposed by such regulatory
body?
Yes - then
answer 114a
No
Not applicable
Other - then answer 114f
114a.
Please describe:
- then answer 114b
114b.
In the case of such a notice having been issued, has such notice been
withdrawn, or, has the remedy of such noncompliance been publicly
announced by the depository?
Yes - then
answer 114c
No - then answer
114d
Other. Please explain in 114e. - then answer 114e
114c.
If Yes, please describe:
114d.
If No, why not?
114e.
If other, please explain:
114f.
If other, please explain:
|
| 115 |
Does the depository have insurance for Default?
Yes - then
answer 115a
No
Not applicable
Other - then
answer 115c
115a. What is the amount of
the coverage?
USD 90
million.
- then answer
115b
115b. What is the amount of the
deductible?
The per
event deduction is USD 150.000.
115c. If
other, please explain:
|
| 116 |
Does the depository have insurance for
Fidelity?
Yes - then
answer 116a
No
Not applicable
Other - then
answer 116c
116a. What is the amount of
the coverage?
USD 90
million.
- then answer
116b
116b. What is the amount of the
deductible?
The per
event deduction is USD 150.000.
116c. If
other, please explain:
|
| 117 |
Does the depository have insurance for Operational
Errors?
Yes - then
answer 117a
No
Not applicable
Other - then
answer 117c
117a. What is the amount of
the coverage?
USD 2
million.
- then answer
117b
117b. What is the amount of the
deductible?
The per
event deduction is USD 50.000.
117c. If
other, please explain:
|
| 118 |
Does the depository have insurance for Errors and
Omissions?
Yes - then
answer 118a
No
Not applicable
Other - then
answer 118c
118a. What is the amount of
the coverage?
USD 2
million.
- then answer
118b
118b. What is the amount of the
deductible?
The per
event deduction is USD 50.000.
118c. If
other, please explain:
|
| 119 |
Does the depository have insurance for Computer
Fraud?
Yes - then
answer 119a
No
Not applicable
Other - then
answer 119c
119a. What is the amount of
the coverage?
USD 90
million.
- then answer
119b
119b. What is the amount of the
deductible?
The per
event deduction is USD 150.000.
119c. If
other, please explain:
|
| 120 |
Does the depository have insurance for the
Premises?
Yes - then
answer 120a
No
Not applicable
Other - then
answer 120c
120a. What is the amount of
the coverage?
USD 6
million.
- then answer
120b
120b. What is the amount of the
deductible?
The per
event deduction are 5 days.
120c. If
other, please explain:
|
| 121 |
Does the depository have any other insurance?
Yes - then
answer 121a
No
Not applicable
Other - then
answer 121d
121a. If so, what is it
for?
Directors and
Officers.
- then answer
121b
121b. What is the amount of the
coverage?
USD 2
million.
- then answer
121c
121c. What is the amount of the
deductible?
0 for each
Director and USD 50.000 for the company
121d.
If other, please explain:
|
| 122 |
Who is the insurance carrier? If more than one
insurance carrier, please list each carrier here and provide your
responses to question's 122a and 122b in corresponding
order.
Willis
Insurance Company: American International Group (AIG Chile) 50%; Chubb
Chile 22%; Cruz del Sur 28%.
- then
answer 122a
122a. Who is the insurance
carrier's parent company, if applicable? (If inapplicable, simply type
n/a.)
Willis Insurance
Company
- then answer
122b
122b. What is the term of the
policy?
The DCV carries
insurance in the form of a Bankers Blanket Bond (NMA2626) and Electronic
Fraud (LSW938), which applies in cases such as: electronic fraud, loss of
subscription rights, employee dishonesty, mysterious disappearance,
authenticity fraud and robbery. The limits of responsibility is 1/1000 of
the value of the securities held under custody, with a maximum coverage of
USD 90 million. The per event deduction is an inconsequential USD 150,000.
At the end of October 20004 the capitalisation of all the securities held
in DCV came to USD 100 billion, so the coverage at this date was USD 90
million.
- then answer
122c
122c. Who does the insurance
cover? (Choose all that apply.)
Depository
Direct depository participants
Final investors
Other - then answer
122d
Not
applicable
122d. If other, please
identify:
|
| 123 |
If you feel that you would like to provide
additional details on any of the given answers, feel free to provide any
additional comments here (maximum of 5,000 characters) or prepare an
additional document identifying the question(s) you are commenting on and
upload the document under 123a:
We don’t need provide additional
details.
123a. Upload document
here:
|
PUBLIC AVAILABILITY
|
| 124 |
The AGC encourages respondents/depositories to make
their answers to this questionnaire publicly available. Will you be making
your response publicly available? (For additional guidance, please review
the help feature to this question.)
Yes - then
answer 124a
No
124a. If yes, how will you be
making it publicly available: (Choose all that apply.)
Web site - then
answer 124b
By individual
request with depository - then answer
124c
Other - then answer
124i
124b. Please provide web site
address of publicly available questionnaire:
124c. Please
provide name of contact at depository who has been designated to receive
such requests.
- then answer 124d
124d.
How would they prefer to be contacted? (Choose all that
apply.)
Telephone -
then answer 124e
Facsimile - then answer
124f
By mail/air
courier - then answer 124g
By e-mail -
then answer 124h
124e. Please provide
telephone number:
124f.
Please provide facsimile number:
124g.
What is the preferred street address for mailing requests?
124h.
What is the preferred e-mail address for such requests:
124i.
If other, please describe how you will be making the questionnaire
publicly available:
124j.
Have you updated your contact details on the home page of this
questionnaire? If not, please be sure to do so. Simply click on the "Home"
button in the right tool bar and it will return you to the home page
containing your contact detail information.
You have reached the
end of the questionnaire. Please be sure to print your responses and
review them prior to submitting your questionnaire. (To print, click on
the "Print" button in the right hand tool bar. This will open up a
separate window in your web browser. It may take a few moments for the
information to load. Once it has loaded, you will be able to scroll
through your entire questionnaire and then to print, you must choose the
print feature from your web browser. In many cases, this is: "file" then
"print." Clicking on the "print" button alone in the questionnaire toolbox
will not print the questionnaire.) It is important that you ensure the
accuracy of your draft responses before submitting the responses as
submission will finalize your response. When you are prepared to submit
your answers, please return to this question and select "save" (or in the
alternative select "end" from the toolbox) which will then take you to the
submission option provided all the necessary questions have been
answered.
The members of The Association of Global Custodians thank
you for your time and for your helpful response.
|