CHESS Broker Sponsorship
CHESS is a computer system which facilitates the transfer of
the legal ownership of securities between buyers and sellers.
CHESS allows you to receive an electronic shareholding statement,
much like a bank statement. Share certificates are no longer
used by most companies as share ownership details are registered
and stored electronically on CHESS.
If you want to buy and sell securities, the transfer of those
securities will occur through CHESS. This means that you must
buy and sell securities through a CHESS Sponsoring Broker such
as us, or you must be sponsored by the company issuing the securities.
The benefit of appointing us as your CHESS Sponsoring Broker
is that, because we have direct access to your CHESS holdings,
we can immediately confirm your shareholdings, execute orders
and settle your transactions on time. Accordingly, there is
less chance of settlement being delayed and additional fees
being incurred as a result.
When you appoint a CHESS Sponsoring Broker, all shareholdings
are held in your name and you are issued with a Holder Identification
Number (often referred to as a 'HIN'). A HIN is like a bank
account number and uniquely identifies any shares which are
held by you through that particular CHESS Sponsoring Broker.
You will be issued with a separate HIN for each CHESS Sponsoring
Broker you appoint.
If you want us to act as your CHESS Sponsoring Broker, you
should complete the form entitled 'CHESS
Sponsorship Agreement.' If you cannot understand any term
of that document you should seek legal advice. If you already
have a CHESS Sponsoring Broker or if you hold shares which are
sponsored by the issuing company and you would like us to act
as your CHESS Sponsoring Broker in respect of the securities
held through your existing sponsor, then you should also complete
the form entitled 'Change
of Sponsoring Broker.'
If you would like any further information about CHESS, please
contact your Adviser.
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