Clearstream reinstates custody and tax services for clients in Iceland
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Clearstream reinstates custody and tax services for clients in Iceland 10 February 2021Iceland Reporter: Maddie Saghir`
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Clearstream, Deutsche Boerse’s post-trade services provider, has reintroduced its securities offering for international investors in Iceland enabling it to offer its clients the full scope of custody and tax services in Iceland.
In addition to non-taxable bonds that were reactivated in the course of 2020, Clearstream has now successfully reintroduced activities for equities and taxable bonds following the adoption of new tax procedures in the market.
Clearstream says its direct link to the Icelandic central securities depository (CSD) and Central Bank results in reduced risks due to less intermediaries and higher efficiency in the custody/processing chain.
Meanwhile, Clearstream also notes that it provides a “unique custody environment” for securities via its network of over 25 direct CSD links including Iceland, many of which are assessed for Eurosystem monetary policy operations.
In terms of asset safety and most efficient processing, this is the preferred access model for domestic markets.
According to the post-trade services provider, assets held with Clearstream through a direct domestic link ensure full transparency on the structure of the domestic market.
Clearstream ensures efficient and timely reporting to the depositary banks and monitoring of the local legal and regulatory framework.
Thilo Derenbach, head of European custody products at Clearstream, says: “Clearstream has been a long-standing partner and custody provider to the Icelandic market. And it is therefore great to be able again to offer our clients the full scope of custody and tax services in Iceland.”
Derenbach explains: “Only the very strong relationships and true partnerships with the domestic CSD as well as the Icelandic Central Bank allows us to deliver to our clients this maximum proximity into this domestic market. The capital controls have, over the years, been gradually lifted, which is a strong sign of the stability of the Icelandic market.”
“Now we can again offer our full service, not only for non-taxable bonds where we updated our offering in 2020, but also for the full security scope that we offer to our clients, including equities and taxable bonds,” Derenbach adds.
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Image: Blue Planet Studio/adobe.stock.com 