Selling commonwealth bank of Australia shares

Mistermeaner

Hi

My late mother and (not late) father own some shares in the commonwealth bank of australia (ASX code CBA). Details are vague but they somehow came into ownership of these many years ago via a scheme offered by the teachers union they were both members of. For clarity my mum and dad are both UK residents and have only ever lived and worked in the UK.

My mum passed away earlier this year and I've been sorting the estate.

I have lots of dividend statements and others communication relating to the shares but no certificates of ownership.

Agreed with dad that selling these shares would be best so contacted the various parties in the file I have (most recent documents from the share centre).

Share centre had no records and passed me to someone else who passed me to someone else who eventually lead me to 'Link Market services' ... spoke to them in the UK but they couldn't help and pointed me towards their australian branch

( https://www.linkmarketservices.com.au/corporate/home.html )

I've managed to register and find the holdings etc. on this website but am unable to sell as apparently my mum and dad don't have an australian bank account (no surprise!)

I have written to them and emailed (no response yet) and will try phoning at night when I get chance (12 hour time difference) but just wondering if anyone has any experience of selling ozzy shares and how they went about doing it?

I did speak with HL, CSD and a couple of other UK share brokers but none of them could help.

The Link Market Services australian website does provide a link to the ASX stock exchange website where it is stated I can find a broker but wondering if there is a better / easier way.

Also can anyone advise on potential tax implications? Between them they own approx 1000 shares which are apparently worth AUD81 each, so AUD81K = £45K!!

Thanks

londoninvestor

Mistermeaner wrote: »

Also can anyone advise on potential tax implications? Between them they own approx 1000 shares which are apparently worth AUD81 each, so AUD81K = £45K!!

The estate would be liable for CGT based on the difference between the sterling value of the shareholding when your mum passed away (which is also the value of the shares for IHT purposes), vs the sterling value of the shareholding when you sell it.

On a £45k total holding, that gain is probably well below the £12k allowance the estate has. So hopefully nothing to pay if those are the only shares in the estate.

digerati

From the Commonwealth Bank website: https://www.commbank.com.au/about-us/investors/managing-your-shares-faqs.html


How can I buy or sell my Commonwealth Bank shares if I live overseas?

All sales need to go through a broker who is able to trade on the Australian Securities Exchange (ASX), as these shares are listed on the ASX.

You will need to contact the broker of your choice, as all brokers charge a different fee for their services. These can be either telephone based or internet based brokers. You can find an internet based brokers on the Find a broker page of the ASX website.

You will require your Security holder Reference Number (SRN) or Holder Identification Number (HIN). This can be located on Statements and all personalised forms and would begin with the letter "I" or "X".

If you reside in the United Kingdom, please use this link London Stock Exchange (LSE) to locate a stockbroker who is able to trade on the ASX.

For CBA shareholders in all other jurisdictions you should contact the Australian Securities Exchange (ASX) on +61 2 9338 0000 or visit the ASX website for further information.

========

If you sell them on the London Stock Exchange it could be quite expensive but no international bank transfer would be necessary. You'll need to weigh this up against selling in Australia via an online broker and doing an international transfer (Transferwise probably cheapest)

Hope this helps.

[Deleted User]

Hi,


have a look at Interactive Investor.

Mistermeaner

thanks for input all

I have emailed 5 brokers from links on provided by the australian stock exchange website and also contacted interactive investor

Will update thread and things progress in case of interest / help to anyone else

digerati

I know from experience that you will not have any CBA share certificates as most Aussie and NZ shares are de-materialized i.e. directly held at the registrar. Your parents should have a CSN or Holder Number, and FIN (equivalent to a bankcard PIN). These will allow you to sell via a broker. If you can't find them, then you can request a new FIN from the registrar.

Mistermeaner wrote: »

Hi

My late mother and (not late) father own some shares in the commonwealth bank of australia (ASX code CBA). Details are vague but they somehow came into ownership of these many years ago via a scheme offered by the teachers union they were both members of. For clarity my mum and dad are both UK residents and have only ever lived and worked in the UK.

I have lots of dividend statements and others communication relating to the shares but no certificates of ownership.

Thanks

Simby

You can open an au bank account as a non resident if you need, you should also check with the ato ( Australian tax office) as there may be capital gains tax due in Australia, plus Australia has a dividend franking system which in simple terms means the dividends come with tax due to a standard rate au tax payer already paid ( google franking and franking credits) but as your parents are not tax resident in AU they are not libel to receive franking credits to reduce their tax bill in Australia.

Also Australia does not have inheritance tax but you get no tax allowance as a non resident.

maddog180169

Hi,

I'm in the same situation but only have 252 shares in CBA to sell but am finding it very hard to find anyone that can help.

Just read an article on a website called "the international investor - sell foreign stocks" and it suggests that "openmarkets" in Australia might be able to sell foreign investors shares held on the ASX.

Sorry can't add the website addresses as a new user and forum rules suggest I can't to stop spamming.

I will investigate and report back if successful.

Good luck

Alan

maddog180169

Just found this on Openmarkets website -

Overseas residents

For overseas customers, please submit your One-Off Sales application via post to OpenMarkets:
OpenMarkets Australia
Suite 300, 189 Queen Street
Melbourne VIC 3000
Along with:

1. A certified copy of your passport*
2. A certified copy of your driver license*
3. A copy of your current holding(s) or dividend statement(s)
4. A copy of a bill no more than 3 months old (overseas applicants only)
5. A copy of your current bank statement no more than 3 months old
6. All non-English documents must be translated by an accredited NAATI translator.

Please note: photo ID must be provided. If your country's drivers license does not display your photo, then a certified copy of your passport only will be accepted.


Our Fees



For each parcel of shares sold, we charge a brokerage fee of min. $200.00 or 1.5% of the trade value (whichever is greater) including GST. I.e. $200 up to the trade value of $15,000, otherwise charged at 1.5%.
International shareholders please note: an additional fee of AUD$100 is charged per Telegraphic Transfer of funds into an international bank account.







I will send them a message to see if they can assist me

londoninvestor

Good luck - probably worth making sure they are very clear on how they apply the ID requirements when you are the personal representative, and the shares are held by the estate.

maddog180169

Woke up this morning to two emails - the first from Openmarkets -

"Hi Alan,

We can sell your shares for you as a one off sale, please see our help centre article for more information

Please note, there is a $100 fee to settle the proceeds into an overseas bank account, this is on top of the standard brokerage fee.
All you have to do is fill out the form and post it in with all the relevant ID and we can process this for you.

Let me know if you have any questions.
Kind regards,
Riane El Moustafa
Client Services Officer
OpenMarkets"

Which seems promising but the next one was something I wasn't expecting, from Link Market Services (The holding company for the shares) -

Dear Mr Keenan,

Thank you for your email.

At Link Market Services, we offer a share sale facility whereby the Commonwealth Bank of Australia is a participant. To sell your shares via the Share Sale Centre, these key conditions must apply:

· Your holding must be Issuer Sponsored (starts with an I rather than X);
· A fee of 0.66% of the total value of the sale will apply, with a minimum fee of $66.00
· You must sell your entire holding, no part sales allowed
· Payments via Direct Credit can only be made to a Australian Bank account
· Cheques will be issued in AUD dollars only,
· A fee of $35.00 AUD will apply to all cheque payments, this fee will be deducted from the sale proceeds.

Alternatively, you can contact Australian Stock Exchange’s Broker Referral Service on + 61 2 9338 0000, if you do not have a broker to act for you. You may wish to visit the ASX website at (ASX website)

Please note that the sale authority form can only be sent by post to your registered address and must be returned to our office by post, as original signatures are required.

If you wish to take part in our sale facility, please return this email with the following information and the appropriate documentation will be posted to your registered:

· The Security holder reference number (SRN) of the holding;
· The registered full name of the holding;
· The registered address of the holding.

Should we be able to assist you further, please do not hesitate to contact us on 1800 022 440, or for overseas callers: +61 2 8280 7199

Regards

Matthew
Investor Services
Email Correspondence
Link Market Services Limited Ph: (02) 8767 1111
Fax: (02) 9287 0303


I think I will respond back to Link Market Services as hopefully they will not require any ID sending over to Australia as they are the holding company and it shouldn't be as complicated as using an external company.



I have checked with my bank (Barclay's) and they will receive a cheque written in Australian Dollars for a fee of course and an exchange rate fee, but at least I might eventually be able to get rid of these shares. I was always expecting to be hit by some charges trying to perform this transaction.

I will let you know how it goes :-)



Alan