Best shareholder perks lost through nominees

Article Abstract:

UK investors are being persuaded by stockbrokers to use nominee accounts, but this means that they can lose some of the benefits of being a direct shareholder. Companies offer discounts to shareholders and other benefits which nominees do not have access to. This applies to 24 companies of 118 which offer incentives, and the number could increase since it is complicated to deal with nominees. Investors also lose voting rights and are not protected by the Investors Compensation Scheme if they use nominee accounts.

Management, Stock-exchange, Stock exchanges

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Assurance for nominees

Article Abstract:

Some UK stockbrokers are offering insurance to investors to cover them if the broker goes bankrupt. This insurance can cover investors using nominee accounts. Sharelink offers such a service at a time when there is concern over levels of protection for investors using nominee accounts. Investors do not automatically gain compensation if they use these accounts and this is an area where there is confusion as to investors' rights and protection levels.

Marketing, Investments

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