Safeguarding Share Certificates

[Pheo]

Hi All

Hopefully a quick one. My grandmother has some share certificates from a number of FTSE100 companies. Due to a recent "incident" I'm interested in ensuring that these are safe, and cannot be sold without the family being aware.

Given they are literally in a shoebox in the dresser. Whats the best way to safeguard them? Can they be put on file with a broker?

The holding is approx £15000 so not huge, but worth enough to look after!

[DoubleSix]

Dematerialise into CREST via a broker, yes.

However, her paper certs are not really at risk of being sold by anyone as they too would have to dematerialise them into CREST and as you will soon see that will involve ID checks etc - share certs are not bearer documents.

The reasons for putting into CREST are many:

- Easy admin
- Easy sale
- Automatic corp action adjustments
- Favourable tax calcs


Get it done now as it's a pain when the inevitable happens.

[Pheo]

Thanks kindly, much appreciated.

Any recommendations for a cheap, but decent broker?

[DoubleSix]

Pheo said:

Thanks kindly, much appreciated.

Any recommendations for a cheap, but decent broker?

As a broker myself I hate recommending the competition BUT for the amounts you are talking about I would just opt for a simple online platform with clear admin, Hargreaves Lansdown for example.

[Pheo]

Ha, apologies.

I have an account with HL - for my own tiny shareholding (drip feeding into Vantage). Can I use my account? presumably not because I'm not her?

Appreciate your help!

[DoubleSix]

Correct. You can't put other people's shares in your account unless you transfer ownership.

[megaphone]

I would also consider putting them into an ISA wrapper, would mean selling and repurchasing, you would lose a small amount. This would shelter them from any tax and capital gains. Also no need then to put them on a self assessment, if you Gran does one?

Hargreaves Lansdown will do it for you, send them the certs, they put in a Vantage account, you then switch online to an ISA account. You could have access to her account, just need the passwords etc, like I do with my Mum's account.

Edited by megaphone on Friday 27th February 09:48

[bad company]

DoubleSix said:

Pheo said:

Thanks kindly, much appreciated.

Any recommendations for a cheap, but decent broker?

As a broker myself I hate recommending the competition BUT for the amounts you are talking about I would just opt for a simple online platform with clear admin, Hargreaves Lansdown for example.

I have an account with HL and they are very good (great website and easy to contact by phone when required).

[2.5pi]

If transferred to HL or similar also tick the box for automatic dividend reinvestment as it cuts out paperwork and makes it less likely that a divi cheque goes astray.

When transferring also check with the registrar that the certificates you have represen the whole holding and if any are missing deal with it now rather than later.

Good luck

[Claudia Skies]

2.5pi said:

If transferred to HL or similar also tick the box for automatic dividend reinvestment as it cuts out paperwork and makes it less likely that a divi cheque goes astray.

And this is particularly beneficial within an ISA where the investment can gross-up free of tax.