If an investor wishes to hold the securities of another company in a deposit account, another issuer must also apply for the opening of a separate deposit account for the same investor by submitting to Nasdaq CSD all documents necessary for opening a new deposit account.
The “know your customer” and anti-money laundering and anti-terrorist financing requirements apply to the opening of a deposit account on the same basis as when opening a regular securities account with an account operator.
The issuer of securities shall submit all documents necessary for opening a deposit account and confirm the accuracy of the submitted information.
Opening a deposit account depends on the availability of the necessary documents and their accuracy and completeness. The account will only be opened after the “know your customer”, money laundering and anti-terrorist financing requirements have been met and actions have been taken. Only then the company can proceed with the initial registration or capital increase procedure.
The issuer must complete and sign the deposit account opening agreement and application
The issuer must complete and sign the sanction screening form
The issuer must complete and sign the due diligence information about the issuer
The investor must complete and sign the due diligence information about the account holder
In order to meet the “know your customer”, money laundering and anti-terrorist financing requirements and to perform the operations required to open an account, the Nasdaq CSD Estonian branch has engaged an external partner who is entitled to collect the necessary information about the issuer and investor and make inquiries on behalf of the CSD. Our partner also specifies the list of required documents that the issuer must submit to open an account.
Nasdaq CSD Estonian branch has the right to refuse to open an account.
The fees related to the deposit account can be found in the price list. The processing fee for the deposit account is payable in accordance with clause 184.108.40.206.1 or 220.127.116.11.2 of the price list, regardless of whether the deposit account is opened or not.
The deposit account is, by its nature, a temporary securities account. After the investor opens an ordinary securities account in a bank, the securities must be transferred from the deposit account to the ordinary securities account and the deposit account will be closed.
In order to initiate the transfer of securities, the issuer of securities must submit an application for the transfer of securities. The transfer will take place once all the necessary documents have been submitted and the requirements for the prevention of “know your customer”, money laundering and terrorist financing have been met and the operations have been completed.
After the transfer of securities, the deposit account is closed.
It is possible to transfer securities from the deposit account to another investor by transferring securities free of payment, on a condition that the investor acquiring the securities has a regular securities account opened with account operator. It is not possible to make a transfer from the deposit account against payment.
It is not possible to transfer securities to another deposit account.
In order to make a transfer, the issuer who has opened a deposit account must submit an application to the registrar of securities. If all documents are in order, the registrar shall initiate the transfer of securities.
All operations related to the pledge shall be performed upon the requests of the issuer of securities who requested the opening of a deposit account.
Pledged securities can be transferred to a regular securities account (e.g. there is a change of pledgor).
Pledge can be executed once the pledged securities are transferred to a regular securities account.
Financial collateral cannot be provided for securities held in a deposit account.
Due to the applicable legislation, due diligence measures must be applied to the owner of the deposit account (investor) and the issuer who has requested the opening of the deposit account even after the opening of the deposit account.
In order to perform due diligence measures, the CSD has the right to request the necessary documents from the issuer and the issuer has the obligation to submit the relevant information to Nasdaq CSD.
Due diligence measures are performed by an external partner.
An empty deposit account shall be closed by Nasdaq CSD without a separate instruction.