Who owns the investments I have through Sharesies?
Short answer: you are the owner of the money in your Wallet and the investments in your Portfolio. Read on to find out how we hold them on your behalf.
It’s called ‘custody’
To put it simply, custody, or a custodial service, is how we keep your money and investments safe.
Using a custodial service means we can keep track of your money and investments over their entire journey—from the moment you top up your Wallet and invest, to when you decide to sell your investments and withdraw your money.
Who provides the custody?
Sharesies Australia Limited provides custodial services and makes sure the paperwork and other administrative tasks are taken care of. We also use a mix of third parties and companies owned by the Sharesies Group to maintain custody of the investments you hold through Sharesies and to support our operations.
Your money and investments are held ‘on trust’. Meaning, they’re held by us on your behalf and for your benefit, through a trust relationship. You’re in control and provide the instructions on what to do with them (such as buying or selling shares).
Annual audits
The custodial service is audited every year by an independent auditor. The audit is a thorough process where the auditor looks in detail at all of the systems and controls we’ve put in place to keep your money and investments safe.
You can get a copy of the latest audit report by emailing help@sharesies.com.au.
Do I own my investments?
Yes, you own all of the investments you have through Sharesies. In legal terms, you’re referred to as the ‘beneficial owner’ of your investments—you get the benefits of owning them.
For example, you’re entitled to the full value of your investments, and if you make a gain, it’s yours. If anything were to happen to Sharesies—it’s still yours.
How are my investments held?
Your investments are ‘pooled’ with the investments of other investors, and held in custody. The custody arrangement is slightly different for Australian, US, and NZ investments.
Australian investments
You are the beneficial owner of any shares you buy on the Australian Securities Exchange (ASX) through Sharesies. They’re held on your behalf in the name of our sub-custodian, Sharesies Australia Nominee Pty Limited.
A Holder Identification Number, or HIN, gets allocated to investors who trade ASX-listed investments. A HIN allows the ASX to identify the new share owner each time shares are bought. Because your investments are held in the name of Sharesies Australia Nominee Pty Limited, there’s one shared HIN for all Australian Sharesies investors. This shared HIN also means that you can invest with no minimum amount!
The main thing to remember is that even though your investments aren’t held under a personal HIN, they still belong to you.
US investments
You are the beneficial owner of any shares you buy through Sharesies on the three US exchanges we provide access to—the New York Stock Exchange (NYSE), Nasdaq, and the Chicago Board Options Exchange (CBOE). They’re held on your behalf by our US broker-dealer DriveWealth LLC in the name of a further sub-custodian of ours, Sharesies Nominee Limited.
This arrangement means we can offer access to these US exchanges with no minimum investment and competitive pricing.
Remember, you have control over your investments, and they belong to you.
NZ investments
You are the beneficial owner of any shares you buy on the New Zealand Stock Exchange (NZX) through Sharesies. They’re held on your behalf by the NZX Securities Depository in the name of Sharesies Nominee Limited.
When you buy NZX-listed shares, the trade is linked to the NZ equivalent of a HIN—this is called a Common Shareholder Number (CSN). Again, as your investments are held under Sharesies’ name, we use one shared CSN for all Sharesies investors.
Your investments aren’t held under a personal CSN, but they still belong to you. Because of this, your access to some corporate actions might be limited. We’ll let you know if you’re eligible (and able) to take part in a corporate action, and organise your dividend payments when they’re allocated to you.
Wrapping up
You own the investments you have through Sharesies, and we can’t use your money or do anything with your investments unless you tell us to.
If you have any other questions about custody, get in touch at help@sharesies.com.au.
Ok, now for the legal bit
Investing involves risk. You aren’t guaranteed to make money, and you might lose the money you start with. We don’t provide personalised advice or recommendations. Any information we provide is general only and current at the time written. You should consider seeking independent legal, financial, taxation or other advice when considering whether an investment is appropriate for your objectives, financial situation or needs.
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