Nominee account

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.

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.

Most Popular

Nationwide to give £100 cash boost to customers
Personal finance

Nationwide to give £100 cash boost to customers

Nationwide Building Society is giving customers £100 as it reinvests profits. Dubbed the Nationwide Fairer Share scheme, we look at who is eligible.
22 May 2023
Holiday rip-off: Millions of travellers hit with hidden costs by using debit card abroad
Personal finance

Holiday rip-off: Millions of travellers hit with hidden costs by using debit card abroad

A family of four on a week-long trip to France could pay an extra £212 in fees by using their everyday bank card compared to the lowest-cost option, a…
23 May 2023
Best savings accounts – May 2023
Savings

Best savings accounts – May 2023

Interest rates have been creeping up - we look at the best savings accounts on the market right now.
26 May 2023