Clients Can Transfer Securities Assets Kept in Bank SNORAS
OREANDA-NEWS. February 17, 2012. The Bankruptcy Administrator has completed the investigation into the ownership rights in respect of assets issued by Lithuanian issuers held in custody accounts for its clients, reported the press-centre of Bank Snoras.
AB Bankas Snoras (the “Bank”) operated a brokerage business and acted as custodian on behalf of individual clients for certain assets such as bonds and securities. These assets are held in custody accounts on behalf of the individual clients. In the view of the Bankruptcy Administrator these assets belong to the respective clients and not to the bankruptcy estate. Following initiation of bankruptcy proceedings, the Bank can no longer act as custodian or maintain custodian accounts. Therefore, the assets held for these clients need to be transferred to external custody accounts at other financial institutions.
The Bank will individually approach each client that the Bank holds assets as custodian for and inform the clients of the requirement to transfer such assets. The Bank will provide clients with a form that needs to be completed by them. When completing the form, each client will have the option to name a new financial institution which is registered to act as custodian of securities with the Central Securities Depositary and to request that their assets are transferred to the new custodian. When the Bank has confirmed the entitlement of the client to the assets it will undertake the necessary transfer procedures with the new custodian. When the new custodian confirms receipt of the relevant documents to accept custody, the Bank will transfer the assets to the new custodian
The Bank kindly asks clients not to send any other requests or letters in connection with assets held by the Bank as custodian until the clients have been approached by the Bank. Other requests will not be considered until the Bank has carried out the process set out above.