Share Certificate Services (Custody Services)
The number of brokers still permitting clients to buy and sell UK and overseas share certificates (paper) has dwindled significantly. We are pleased to offer this service through our brokers for those clients based in the UK still wishing to sell and hold their UK and overseas share certificates.
An alternative to holding share certificates is our Nominee Service (Electronic)
A nominee holding company is a segregated company which is completely independent of the stockbroking firm. If the stockbroker was to unfortunately become bankrupt, the nominee holding company would continue regardless completely unaffected as a going concern being a ring-fenced and distinct entity as custodian of assets on behalf of the firms underlying clients.
Although we have access to both services, it is recommended that shareholders use a nominee service as the advantages far outweigh holding stocks and shares in certificated form.
Our nominated stockbrokers operate both a share certificated (paper) and nominee service (electronic) to hold stocks and shares.
What are the advantages of using our Nominee Services?
- Our brokers nominee service is FREE (after three years of no activity a £40 charge is levied)
- All nominee accounts are insured up to £10 million per claim by the firms underwriters.
- Every UK and Overseas listed stock and fund can normally be held in a nominee account
- Overseas dividends can be converted in to British Pounds avoiding heavy bank charges for depositing overseas denominated cheques
- Corporate actions are automated in respect of share splits, conversion, rights issues, takeovers etc
- Share certificates can be dematerialised very simply from paper in to an electronic holding within days
- Share sales can be transacted for much shorter settlement periods providing better liquidity for clients
- Portfolio valuations, statements and portfolio performance analysis can be easily administered
- Indemnities for lost shares certificates in the UK and US can cost as high as 3% of the stock value to replace.
- Shares can be electronically transferred very quickly from one custodian to another
- Upon the death of a shareholder, a nominee account provides a simple solution to administer an estate’s assets
For more information on Share Data Nominee & Custody Service please contact us.