How do you open a CDS account in Kenya?
If you have chosen a provider, you can now open the securities account . If you already have a current account with a direct bank and would also like to have the CDS account activated, you usually do not have to prove your identity again. As a new customer, however, you cannot avoid a few details.
The custodian bank asks for data such as address, account details or salary.
First steps in the new CDS account
Your bank or broker will let you know as soon as the new custody account has been set up. You can then transfer money from your checking account to the clearing account with a normal transfer (this step may not be necessary with direct banks if it is the same account). And off you go – you can set up a savings plan or buy ETF shares.
How do you change your CDS account?
If you want to change your CDS account, it is relatively easy. To do this, first open a new account with another bank or another broker. Most banks offer a relocation service (custody change service) . To do this, you fill out a form that authorizes the new bank to transfer the securities from your old custody account. Before that you have to delete open orders and, if there are any, sell fragments (i.e. the fractional parts from a savings plan).
You can also select individual stocks or funds for a transfer. Check beforehand whether the securities can also be traded with the new custody account provider – otherwise a transfer would be neither possible nor sensible. Transfers to direct banks and from well-known individual stocks and large ETFs are usually unproblematic. Before the transfer, however, you should check whether a security can be traded with the new provider. If this is not possible, then it cannot be transferred. If in doubt, customer service can help you.
However, the providers may pass on the costs of third parties, such as custodians, to you.
A CDS account change can take several weeks. During this time you sometimes cannot access your securities. You should therefore not transfer securities that you intend to sell in the near future.
