online share dealing, nominee accounts>?

Cunning

hey guys.
i'm in the process of setting up an account with aib for the purposes of buying shares.
the thing is that up untill now when you bought shares online with aib:

you were put on the company's registar and as far as i can understand you were in the same position as you would be with "paper" shares.


however now they are moving to a "nominee" account which as far as i can understand means, that when you ask aib to buy say €1000 of shares, they buy it for themselves (aib=goodbody) and keep the shares for you.


so what i'm wondering is for an online sharedeaing account which is a nominee account

do you need crest membership

can you take your shares "offline" (ask for the online shares to be erased in place of paper shares)

+is there any subtleties that i should be aware of with reguard to online share trading or nominee accounts, cheers

Blackjack

Cunning wrote:

do you need crest membership

AIB will be using their own CREST membership and the shares will be registered in the name of the nominee Company.

Cunning wrote:

can you take your shares "offline" (ask for the online shares to be erased in place of paper shares)

You can Materialise shares (I.e cancel the Electronic ones and have the Registrar issue a certificated version). There really is no good reason to do this however, and your shares will be in Limbo for a number of days while waiting for the registrar to issue these. There is also an associated cost.
Why exactly would you want paper shares?.

Cunning wrote:

+is there any subtleties that i should be aware of with reguard to online share trading or nominee accounts, cheers

Not really, all fairly straightforward and above board. Should you wish to attend an AGM to vote or whatever usually you just need to notify the Broker before the event (2 weeks or thereabouts) and they will issue you a letter indicating your holding and entitlement to vote etc. Dividends will be paid to your account as opposed to issued by cheque, and any corporate actions will take place pretty much as normal, with no requirement to return any certificates in the event of a change to the holding/security.

Electronic shares are the way forward. Certificated shares are for Dinosaurs.

Cunning

thanks blackjack. i suppose i was just a bit sceptical about there being a nominee account, and was worried that it may be a disadvantage in some way. i'm new to this game.

BendiBus

Cunning wrote:

thanks blackjack. i suppose i was just a bit sceptical about there being a nominee account, and was worried that it may be a disadvantage in some way. i'm new to this game.

The disadvantage is that if the nominee goes out of business, or does a runner to South America, you're snookered as you don't have a direct claim on the shares.

Cunning

am i relying on the integrity of aib/goodbody then?
i know blackjack says certificate shares are for dinosauras but it does seem more secure, you only risking the company to go bust not the company and the bank![however small that risk may be][although northern rock is food for thought]

next q.
no i think i'll do a new thread to keep this on topic

Blackjack

BendiBus wrote:

The disadvantage is that if the nominee goes out of business, or does a runner to South America, you're snookered as you don't have a direct claim on the shares.

Unlikely in the case of Goodbody's to be fair, they're backed by AIB and unless they are buying shares for their own book under the Goodbody nominee in which your shares are registered (very unlikely, there is legislation to ensure that client monies are kept seperate from the companies own assets) you should still be safe.

Up to you entirely, really. I personally think that you're be way too cautious on this and Northern Rock is a completely different kettle of fish, but it's your risk not mine, so it really depends on whether you want to spend the extra time and money on dealing with residual securities over electronic.

D'Peoples Voice

BendiBus wrote: »

The disadvantage is that if the nominee goes out of business, or does a runner to South America, you're snookered as you don't have a direct claim on the shares.

Blackjack wrote: »

Unlikely in the case of Goodbody's to be fair, they're backed by AIB and unless they are buying shares for their own book under the Goodbody nominee in which your shares are registered (very unlikely, there is legislation to ensure that client monies are kept separate from the companies own assets) you should still be safe.

Up to you entirely, really. I personally think that you're be way too cautious on this and Northern Rock is a completely different kettle of fish.

Okay, well I've just received a letter from AIB telling me that they "wish to advise that we no longer provide Nominee Share Dealing account facilities."

they suggest "open a share dealing account with either Goodbody Stockbrokers or a stockbroker of your choice and transfer your shares to that account"

the thing is that Goodbody charge a €26 yearly maintenance charge (I assume yearly its the same as an annual maintenance charge:o)

Can people advise what is the cheapest stockbroker with whom to hold a nominee account - you may assume that i merely wish to hold the shares i already have and not trade further!

irishh_bob

D'Peoples Voice wrote: »

Okay, well I've just received a letter from AIB telling me that they "wish to advise that we no longer provide Nominee Share Dealing account facilities."

they suggest "open a share dealing account with either Goodbody Stockbrokers or a stockbroker of your choice and transfer your shares to that account"

the thing is that Goodbody charge a €26 yearly maintenance charge (I assume yearly its the same as an annual maintenance charge:o)

Can people advise what is the cheapest stockbroker with whom to hold a nominee account - you may assume that i merely wish to hold the shares i already have and not trade further!

i was with goodbodys untill very recently , changed to TD waterhouse , goodbodys were twice as dear for trades , they are robbers

D'Peoples Voice

irishh_bob wrote: »

i was with goodbodys untill very recently , changed to TD waterhouse , goodbodys were twice as dear for trades , they are robbers

Are you sure? I could have swore i just read they have a quarterly charge of EUR 15?

There is a good comparison here http://www.askaboutmoney.com/showthread.php?t=6629&page=6
these seem the best http://www.redmayne.co.uk/contact/forms.htm

Blackjack

D'Peoples Voice wrote: »

Okay, well I've just received a letter from AIB telling me that they "wish to advise that we no longer provide Nominee Share Dealing account facilities."

they suggest "open a share dealing account with either Goodbody Stockbrokers or a stockbroker of your choice and transfer your shares to that account"

the thing is that Goodbody charge a €26 yearly maintenance charge (I assume yearly its the same as an annual maintenance charge:o)

Can people advise what is the cheapest stockbroker with whom to hold a nominee account - you may assume that i merely wish to hold the shares i already have and not trade further!

Any reason why you Bolded what I said, which was posted nearly 4 years ago, and there is no proof that anyone has lost their assets from being held in a Nominee account?. Have you lost money with AIB?.

D'Peoples Voice

Blackjack wrote: »

Any reason why you Bolded what I said, which was posted nearly 4 years ago, and there is no proof that anyone has lost their assets from being held in a Nominee account?. Have you lost money with AIB?.

oh no, it wasn't aimed at you,
moreso that investors in general can never say never,
when it comes to irish banks and the competency of our Civil Service/Regulator.

There would have been many that held the same view as you expressed,
moral hazard can be a dangerous thing.

In light of this, i was looking for somewhere safe,
knowing i'll not be the victim of moral hazard again!
Fool me once shame on you
fool me twice shame on me!

Blackjack

D'Peoples Voice wrote: »

oh no, it wasn't aimed at you,
moreso that investors in general can never say never,
when it comes to irish banks and the competency of our Civil Service/Regulator.

There would have been many that held the same view as you expressed,
moral hazard can be a dangerous thing.

In light of this, i was looking for somewhere safe,
knowing i'll not be the victim of moral hazard again!
Fool me once shame on you
fool me twice shame on me!

fair enough. Just thought you were having a sly dig. Appreciate your comments.