Aria Capital takes the security of clients’ assets very seriously. The following are Frequently Asked Questions in relation to the security of client assets, how investments are held and the safeguards over such assets.

Question:
Who regulates Aria Capital and what is its regulatory status?

Answer:
Aria Capital is regulated by the Central Bank of Ireland. The firm is a Multi Agency Intermediary and is authorised under Section 10 of the Investment Intermediaries Act, 1995 (as amended).

Question:
What safeguards and controls are in place over client assets?

Answer:
Aria Capital does not hold client assets. Most clients’ assets are held by Pershing Securities International Limited (“Pershing”) or in some cases by one of the regulated insurance companies operating in Ireland. We have chosen Pershing because of the range of markets it can facilitate transactions and because of the strength of its business offering in Ireland and the UK. Pershing is a subsidiary of the Bank of New York Mellon Corporation and is regulated by the Central Bank of Ireland. In 2014 Pershing was named in the European Wealth Briefing awards as the best Global Custodian for excellence in cost, efficiency and flexibility as well as for providing exceptional stability as a custodian of assets. For more information on Pershing please visit www.pershing.ie.

Question:
Who does Aria Capital use to facilitate asset administration, order processing and settlement?

Answer:
Aria Capital outsources these activities to a company called Conexim Advisors Limited (“Conexim”). We appointed Conexim after a detailed selection and due diligence process. Conexim works closely with Pershing which was an important factor in their selection. Conexim was established in 2010 to provide a new and innovative platform and trading service for Trustees, Intermediaries and their clients to access funds, equities, ETFs and fixed income products at institutional rates. Conexim currently administers approximately €1 billion of assets on behalf of investors. For more information on Conexim please visit www.conexim.ie.

Question:
If I have cash in my account where is it held?

Answer:
Money held by Pershing for your account will be held in compliance with the Applicable Law. This means, amongst other things, that your money will be kept in a special designated client bank account which would be designated as “Client Asset Account” and therefore completely separate from any money belonging to Pershing.

Question:
What would happen to my assets in the unlikely event of Aria Capital, Conexim or Pershing going out of business?

Answer:
Investments and money held on behalf of clients are legally segregated from both Aria Capital, Conexim and Pershing’s own assets. This means that in the unlikely event of any of these companies going out of business, their creditors would not have recourse to client assets when making a claim against the firm.

Question:
Is Aria Capital subject to external supervision?

Answer:
Yes. Aria Capital is subject to external oversight, as follows:

  • The Central Bank of Ireland supervises Aria Capital, since it is responsible for the regulation and supervision of investment firms in Ireland in the interests of protecting investors and market integrity. As a regulated entity, we are subject to reviews by the Central Bank of Ireland.
  • We are audited on an annual basis, which includes a review of our internal controls.
  • Certain parties, including certain third party fund managers, have reserved the right to carry out reviews of our controls.

Question:
Who has beneficial ownership of assets held by a custodian?

Answer:
The client at all times remains the beneficial owner assets even though Pershing or one of its affiliates may be registered as the legal owner.

Beneficial ownership arises where one party holds assets on behalf of another. The legal owner (i.e. the registered holder) has control over the asset and can, for example, buy and sell the asset on behalf of the beneficial owner. However, the legal owner in this instance is not entitled to the asset and so, while it will receive the income and capital on behalf of the beneficial owners, it will never benefit from it. The beneficial owner receives the benefits associated with ownership such as dividends and gains from the asset, etc.

Question:
Can Aria Capital buy or sell assets in my account without my authorisation?

Answer:
No. Aria Capital is an advisory manager and cannot operate your account on a discretionary basis.

Question:
Where can I obtain further information?

Answer:
If you would like further information on the safeguarding of client assets please email compliance@aria-capital.ie.