Nominee account

Legal ownership of UK shares used to be determined by share certificates, but is now captured electronically on the register of share ownership for each firm, which is updated after every share transaction.

Usually a broker records shares bought on behalf of clients using a general ‘nominee’ account on the register with a name chosen by the broker. Nominee accounts are preferred because recording many shareholdings under a single name reduces administration time and cost, since share certificates are not issued.

However, some investors prefer to pay extra for share certificates and to have their own name on the register. This can make identifying their shares easier and quicker should a broker go bust.

MoneyWeek magazine

Latest issue:

Magazine cover
Avoid the dinosaurs

Why smaller stocks are better bets

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 4 FREE Issues

Vote in the MoneyWeek Readers' Choice Awards

Vote for your favourite financial services company in the inaugural MoneyWeek Awards, and you could win a year's subscription to MoneyWeek magazine. Find out more and vote here.


Which investment platform?

When it comes to buying shares and funds, there are several investment platforms and brokers to choose from. They all offer various fee structures to suit individual investing habits.
Find out which one is best for you.