Trading 212 shares ownership

Tumtitums

I have bought  some shares using the trading 212 app however someone has suggested that i check to make sure that the shares are in my name. I cant find confirmation of this on the trading 212 website . My question is , when i buy shares via trading 212 are the shares registered as being  in my name or are they in the name of some intermediate company

wmb194

Tumtitums said:

I have bought  some shares using the trading 212 app however someone has suggested that i check to make sure that the shares are in my name. I cant find confirmation of this on the trading 212 website . My question is , when i buy shares via trading 212 are the shares registered as being  in my name or are they in the name of some intermediate company

Yes, it will be in the name of its nominee company. Unless you use a stockbroker which offers Crest accounts - rare and more expensive - then this is normal. Realistically, if you want them to be held in your own name you need to go down the certificated route with all the related costs and complications.

Edited to add:
"13.6. Investments purchased by us on your behalf or transferred to us will be registered in the name of a nominee company or our name or a sub-custodian. We will be responsible and liable for our nominee to the same extent as for our own acts, including losses arising from fraud, wilful default or negligence."

https://www.trading212.com/legal-documentation/client-agreement-stock-trading

Tumtitums

i ) So when you by shares in company A via the app its technically wrong to say that you own  shares in company A as they are actually in the name of the intermediate company ??

ii) If company A is bought by another company which is offering £10 per share to all registered shareholders i hope this includes the people who bought shares via the app  and where they intermediate company is registered as the shareholder . This is my main worry

wmb194

Tumtitums said:

i ) So when you by shares in company A via the app its technically wrong to say that you own  shares in company A as they are actually in the name of the intermediate company ??

ii) If company A is bought by another company which is offering £10 per share to all registered shareholders i hope this includes the people who bought shares via the app  and where they intermediate company is registered as the shareholder . This is my main worry

The shares are owed to you by T212 and you'll receive the dividends, interest, PIDs, capital distributions or whatever's related to them. Assuming T212 allows transfers out, you can transfer them to another broker if you want to. Income and capital gains related to them are also yours to declare as your own tax liability. You need to Google stockbroker nominee accounts. It's not something I'd be anxious about - nominee accounts have been around for decades - but if you are then you can go the certificated or Crest account route.

masonic

Tumtitums said:

i ) So when you by shares in company A via the app its technically wrong to say that you own  shares in company A as they are actually in the name of the intermediate company ??

No, it is not technically wrong to say you own them. You are the beneficial owner of the shares, which does not necessarily mean that they are directly held by you.

Tumtitums said:

ii) If company A is bought by another company which is offering £10 per share to all registered shareholders i hope this includes the people who bought shares via the app  and where they intermediate company is registered as the shareholder . This is my main worry

Normally nominees will allow the owner of the shares to vote and take up options when such issues arise. You should check your T&Cs if unsure on this point.

DireEmblem

wmb194 said:
Assuming T212 allows transfers out, you can transfer them to another broker if you want to.

This is apparently in flight, with transfers in about to commence testing first.

george4064

Just to add, this nominee account setup is used across the popular and established platforms such as Hargreaves Lansdown, AJ Bell, II etc. so you shouldn’t have any concerns about it.

adindas

DireEmblem said:

wmb194 said:
Assuming T212 allows transfers out, you can transfer them to another broker if you want to.

This is apparently in flight, with transfers in about to commence testing first.

Do you have any idea the timelime when they will start offering the SIIP account ??

DireEmblem

adindas said:
Do you have any idea the timelime when they will start offering the SIIP account ?? 

Let me consult my magic 8 ball 

Its a much needed thing for a lot of users (not myself personally, but I can see the advantage).  There was a mention tentatively suggesting it would be ready by Q1 2021, but at a guess I don't think they realised at the time just how much work it would take to split out their European users/arm and was put on pause like a lot of things.  It is probably time the question was raised again.



Might be out of date, but it could become the cheapest platform for a SIPP if you are happy to simply hold ETFs and so on.

If I were to make an educated guess, once the waiting list has gone for UK accounts, it might then be back in the pipeline.

masonic

It seems to be missing most of the cheaper options: Fidelity (capped at £3.75/month for exchange traded investments), Jarvis X-O, and iWeb.

Also, by comparing the maximum possible fees, it is not relevant to anyone who opts for a cheaper service (e.g. caps on percentage fees for holding ETFs/ITs/shares). Particularly misleading for interactive investor, because they've given the total fee for SIPP and trading account/ISA, where SIPP only is cheaper, and SIPP added to ISA/trading account is only a small increment, and have also failed to indicate that it comes with free online trades.

adindas

DireEmblem said:

adindas said:
Do you have any idea the timelime when they will start offering the SIIP account ?? 

Let me consult my magic 8 ball 

Its a much needed thing for a lot of users (not myself personally, but I can see the advantage).  There was a mention tentatively suggesting it would be ready by Q1 2021, but at a guess I don't think they realised at the time just how much work it would take to split out their European users/arm and was put on pause like a lot of things.  It is probably time the question was raised again.



Might be out of date, but it could become the cheapest platform for a SIPP if you are happy to simply hold ETFs and so on.

If I were to make an educated guess, once the waiting list has gone for UK accounts, it might then be back in the pipeline.

I intend to use SIIP account for trading Individual stocks and ETFs. So it should have a wide varieties of stocks and ETFs, to be selected similar to those available with Freetrade.

When this SIIP available under T212 I might do in specie transfer some of my current ISA to T212 SIIP account if it is allowed.