Direct Broking to Jarden Direct to Hatch ?

[Waltzing]

Profitable business or did transaction volumes start to dry up ...

after Brian E's article one wonders if money flowed out of the markets and went to yield...

and thats why stock prices have almost crashed ....

said recently it was starting to feel like a mini GFC for NZ and now treasury is making noises along those lines ...

you ned to make sure your portfolios have exposure through listed companies to overseas markets ..

not hard as many NZ companies now make more money in AUS than they do here...

[Basil]

Somewhat surprisingly, I had a reply from Jarden Direct a copy of which is below.

Thanks for reaching out.

With Hatch all ASX, US, and UK shares will be traded and managed on a custodial basis. For your NZX shares, we will be offering both custody and own-name trading. Custody trading however, will be offered at a better price point and will allow us the ability to manage dividends, corporate actions, and tax.

Hatch was launched in 2018 by Kiwi Wealth (now Fisher Funds) and was the first digital investing platform to give New Zealanders low-cost, easy access to the US share markets. Hatch was also the first to offer Kiwi investors full and fractional shares. In 2021, FNZ acquired Hatch, connecting the platform to FNZ's global wealth management system.

From their Wellington roots, FNZ has grown into a global financial powerhouse and today have a strong presence in more than 20 countries with over 4,000 employees.

FNZ provides the backend financial infrastructure that makes platforms like Vanguard, Barclays - and Hatch - possible. While FNZ works behind the scenes, they've been at the forefront of the retail investing revolution for 17 years. FNZ is responsible for more than US$1.5 trillion in funds under administration and counts some of the largest global financial institutions among their clients.

If you decide that you'd prefer to deal directly with an advisor at Jarden, we can certainly pass your details on to one of the team.

A full list of our advisors can be found on Jarden's website here.

Emphasis added.  That's a red line for me so it's good they haven't crossed it and will be offering own name trading.  Also good is that Jarden's advisory service is continuing and that might be an option for me or maybe Craigs. 

[BlackPeter]

Somewhat surprisingly, I had a reply from Jarden Direct a copy of which is below.

Overall that's some comfort. 

Cheers for sharing.

Just a funny coincidence - my German banking provider (started as "netbank", taken over by and rebranded as Augsburger Aktienbank, turned later into ebase was a year or so ago taken over by and integrated into FNZ.

So far it feels the service did improve since then.

Maybe there is hope for good old Direct Broking as well? Who knows ...

[Left Field]

Thanks Basil Beagle for starting this thread and sharing your concerns and response from the DB team.

I too wish to retain my family trust's direct ownership of shares via "own name trading" so am relieved that this will be an option in the new 'service' however, I await more details re the cost comparison versus custodial holdings.

I won't be rushing to sign any new terms and conditions and will keep an open mind on the alternative options available to change or go elsewhere.

That said, I know one of the original founders of Hatch and it's encouraging to see how this service has progressed. I hope that going forward current DB/Jardens clients will have an even stronger service arising from the combination with Hatch.

[Henry Filth]

I have followed this sad, sorry, saga from Direct Broking through ANZ Securities to Jarden Direct. The trajectory has not been one of constantly improved operational functionality, improved customer service, and reduced cost.

I have low expectations of the New Zealand financial services industry, and little expectation that this will change as Jarden Direct is stuffed and squeezed into Hatch.

If I could access the NZX from offshore, I'd be outta here like a shot.

[Breezy]

I have followed this sad, sorry, saga from Direct Broking through ANZ Securities to Jarden Direct. The trajectory has not been one of constantly improved operational functionality, improved customer service, and reduced cost.

I have low expectations of the New Zealand financial services industry, and little expectation that this will change as Jarden Direct is stuffed and squeezed into Hatch.

If I could access the NZX from offshore, I'd be outta here like a shot.

Exactly and more competition desperately needed, too much influence from people higher up with no idea of how things work on the shop floor in practical terms trying to fix things that aren't broken and then turning them into broken things.

[Henry Filth]

I especially don't like the direction of travel when it comes to the proposal for custody arrangements for New Zealand securities. All I can see is the prospect of the traditional New Zealand  percentage-based fee structure clipping the ticket with no benefit - tangible or otherwise.

[Untamed]

For anyone who is interested, when the Jarden/Hatch amalgamation was announced, they said it would be finalised by the end of the year. I messaged Hatch yesterday to ask for an update, and was told it will now  probably not happen until early next year. That was all the info he had.

Pretty disappointing as I was hoping once it went through and Hatch then supported the NZX, it might be a decent alternative to Sharesies. But the silence has been deafening, and the lack of info available doesn't give me a ton of confidence.

[777]

And now they want to know all about you.


 Invest Direct


To keep your Invest Direct account active we need some information about your employment, your financial assets, and how you intend to invest.

We're required to gather and keep this information up to date under New Zealand law as part of our anti-money laundering (AML) obligations.

The next time you log in to your account, you will be directed to provide this information.

What do I need to do?

· Log in to your account.

· Complete the questionnaire.

· That's it, you're all done!�

�Need help?

If you have any questions about this request, please visit our Help section for more information. Or contact us directly at hello@investdirect.nz

Thank you,

The Invest Direct Team

Give them heaps. Nosey bast**ds

[Jay]

Just did the survey with , shall we say minimal information
e.g Occupation - Worker!

[Otago K]

And now they want to know all about you.


 Invest Direct


To keep your Invest Direct account active we need some information about your employment, your financial assets, and how you intend to invest.

We're required to gather and keep this information up to date under New Zealand law as part of our anti-money laundering (AML) obligations.

The next time you log in to your account, you will be directed to provide this information.

What do I need to do?

· Log in to your account.

· Complete the questionnaire.

· That's it, you're all done!�

�Need help?

If you have any questions about this request, please visit our Help section for more information. Or contact us directly at hello@investdirect.nz

Thank you,

The Invest Direct Team

Give them heaps. Nosey bast**ds

I think it is merely regulatory impositions at play here, unfair to get upset with the business, if they were to be reluctant to comply they would be in effect in court, AML is partly about International Law and compliance with that. In any interactions if you are USA associated you will have a whole different level of hoops to jump thru. Haven't had the clarity to wish to face yet personally, got multiple entities within my log in and expect will have some tech glitches to complete but wen I can commit time with them on phone will get sorted, as indicated maybe quite simple and rudimentary. Hope sounds positive, got family dysfunctions affecting my mindset if I allow it at present.

[777]

So the following questions you would be happy with

"how much do you plan to invest with Invest direct in the coming year?"

"what is your net worth?"

[BlackPeter]

And now they want to know all about you.


 Invest Direct


To keep your Invest Direct account active we need some information about your employment, your financial assets, and how you intend to invest.

We're required to gather and keep this information up to date under New Zealand law as part of our anti-money laundering (AML) obligations.

The next time you log in to your account, you will be directed to provide this information.

What do I need to do?

· Log in to your account.

· Complete the questionnaire.

· That's it, you're all done!�

�Need help?

If you have any questions about this request, please visit our Help section for more information. Or contact us directly at hello@investdirect.nz

Thank you,

The Invest Direct Team

Give them heaps. Nosey bast**ds

Blame our money laundering laws ... not a lot hatch can do about it, and not even sure our government could. It is a requirement that the bank does know you, understands the source of your wealth and can identify unusual transactions. Just based on more and more stringent international agreements, implemented in a more or less stupid fashion by various banks / brokers / money transfer companies.

courtesy to Dr. Googles AI interface:

Money laundering laws in New Zealand, governed by the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act 2009, aim to detect and deter money laundering and terrorism financing. These laws place obligations on various businesses, including financial institutions, casinos, and certain professionals like lawyers and accountants, to implement measures to prevent the use of their services for illegal activities. The laws also involve reporting suspicious transactions and ensuring customer due diligence.

[Raven]

The problem with giving minimal or "inaccurate" answers could be that your later routine activities are inconsistent with your answers and trigger some automated system and your account gets flagged for suspicious activity. Unlikely for sure, but nevertheless a possibility.

[Popeye]

I have done quite a few AML questionnaires in NZ and beyond, and I cannot remember being asked how much I intended to invest with the broker, income of partner and self etc.  Mostly they just ask your source of wealth.  Methinks DB decided to err on the side of asking questions their marketing department would like to know the answer to.

I would have thought a broker could very quickly ascertain risky accounts by the volume, value and velocity of trading done...