Separate legal entity

Generally, securities that must be held by a Netherlands Antilles bank on behalf of its clients will be held by a custodian. In most cases the custodian is either a foundation (‘stichting’) or a wholly owned subsidiary (NV or BV) of the bank.

The scope of the activities of the custodian will be limited to holding shares, bonds, notes, certificates and other securities. The insolvency risk of the custodian is therefore minimized. Alternatively, these securities can also be held in the name of the custodian by independent custody companies abroad, including brokers, agents and sub-custodians. In both cases, the securities will not form part of the assets of the bank and will not form part of the bank’s estate if the bank becomes bankrupt.

The custody of securities is regulated by a Custody Agreement between the bank and the custodian. Provisions are laid down therein to the effect that the bank guarantees compliance with custody obligations by the custodian in accordance with market practice.

The custodian shall not be responsible for any act, omission, or default of, or for the insolvency of, any broker, agent or sub-custodian provided that it has used reasonable care in the appointment, supervision and control of them.

Karel Frielink
Attorney (Lawyer) / Partner

7 december, 2009

NAGICO respects arbitrators’ decision

PHILIPSBURG--NAGICO Insurances Chairman Imran McSood said on Thursday that the company accepts the decision of the arbitrators in the case involving Princess Juliana International Airport (PJIA).

Dutch Princess Christina, sister of Beatrix, dies at age 72

THE HAGUE--Princess Christina, youngest sister of former Dutch queen Beatrix, has died of cancer at the age of 72. The announcement was made on Friday morning by the Government Information Service RVD.

Negotiations on Oyster Pond border to commence late 2019

THE HAGUE--The actual negotiations regarding the St. Maarten/St. Martin border, including the Oyster Pond area, are expected to start at the end of 2019, confirmed Dutch Kingdom Minister of Foreign Affairs Stef Blok on Thursday.