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
Don't panic!

The Greek vote is a great opportunity to buy Europe

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

Paul Hodges: house prices could fall 50% in 'Great Unwinding'

Merryn Somerset Webb interviews Paul Hodges about deflation, the global economy's 'Great Unwinding', and how Britain's house prices could halve.


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.


30 January 1933: Adolf Hitler takes power

Adolf Hitler came to power on this day in 1933 following a political gamble that went disastrously wrong, and allowed the Nazi leader to call fresh elections.