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Questions Page
Q. What
is CHESS?
Q. What
is a HIN?
Q. What
is the difference between Broker Sponsored and Issuer Sponsored?
Q. Can
I transfer stock from one Sanford trading account to another?
Q. Can
I transfer stock from my previous broker to my trading account
with Sanford?
Q. How
long does it take to transfer my securities from another broker?
Q. What
is settlement and how long is the settlement term?
Q. How
do I receive my proceeds from share sales?
| Answers to Settlement Questions |
What is CHESS?
CHESS stands for Clearing House Electronic Sub-Register System.
Instead of issuing a physical share certificate, CHESS records
an individual's share ownership via the ASX's computer-based
share and settlement transaction system. An individual's securities'
holding is recorded against their HIN and a statement is sent
out to their registered address. All clients that wish to
trade through Sanford are required to be registered on CHESS
and hence be Broker Sponsored.
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What is a
HIN?
HIN stands for Holder Identification Number. It is the number
by which CHESS identifies individuals and registers their
holdings. It also identifies the broker they hold the securities
with. You will be provided with a HIN when you complete the
Broker Sponsorship Agreement in your share trading application
form.
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What is the
difference between Broker Sponsored and Issuer Sponsored?
There are different ways that you can hold your CHESS-approved
securities; issuer sponsored, broker sponsored or certificated.
To be broker-sponsored, Sanford will assign a HIN to you.
Each month you will receive a single CHESS statement showing
any share movements during the month. You are able to trade
with Sanford over the phone or the internet. Issuer Sponsored
means no broker is involved in the sponsoring of your shares.
In effect, the issuer sponsors the shares. The issuer is the
company whom the shares were bought from. For example, Woolworths,
Telstra, etc. Holders of Issuer Sponsored holdings are given
an SRN (Security Holder Reference Number) which are detailed
on the holding statement.
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Can I transfer
stock from one Sanford trading account to another?
Stock can be moved from one Sanford trading account to another,
this is known as an off-market transfer. To complete an off-market
transfer you will need to fill in the Off-Market Transfer
Form which Sanford can provide for you. The cost of an off-market
transfer involves an administrative charge of $55 (incl.GST)
per security transferred, plus stamp duty.
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Can I transfer
stock from my previous broker to my trading account with Sanford?
Yes you can. Just complete the broker
to broker transfer form and specify the HIN or stocks
you want transferred over. Send/fax this form back to us and
we will process this request.
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How long does
it take to transfer my securities from another broker?
Australian Stock Exchange requires transfers be conducted
within 2 business days.
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What is settlement
and how long is the settlement term?
Once you have bought or sold a stock, it needs to be settled
by all parties involved. During this period, the exchange
of stock and money occurs between brokers. Settlement term
is currently T+3 (trade date + 3 business days).
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How do I receive
my proceeds from share sales?
Once you have sold your shares and settlement has been completed,
proceeds from share sales can be remitted to you in any of
the following ways:
- Direct credit to your Cash
Management Account
- Direct credit to your nominated
bank account
- By cheque
If you have a CMA
If you establish a Cash Management Account, settlement proceeds
will be directly transferred into that account. Proceeds remain
in the CMA unless you specify in writing to transfer funds
out into a nominated bank account. Funds Transfer forms, can be found on the Accounts
Services pages, for members.
If you do not want the sales proceeds to be deposited to
your CMA
You must instruct us in writing to transfer the sale proceeds
to your nominated bank account, as specified on your original
application forms.
Sale proceeds should be received on T+3 in most circumstances,
however some delays may occur due to delays in bank processing.
If you did not originally nominate a bank to transfer funds
out to, then a cheque will be posted out to you.
To change your nominated bank details or to request a funds
transfer, please download the forms from the Account Services page, for members.
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