FAQ’s


How do I open a share trading account?

What is meant by account type?

What information is needed to complete this trading account application?

What is meant by the term Company Type?

Who is considered an eligible person for the purpose of certifying identification documents?

What identification documents are acceptable?

Why do existing account holders / applicants need to provide their current Username?

Why do I need to create a Username and Password?

What is an Authority to Trade?

As a company applicant, what is meant by industry types?

What is a Nominated Account?

Can my margin lending account be in a different name to the trading account?

What is CHESS and the CHESS Sponsorship Agreement?

What is an Issuer Sponsored Holding?

What is a Broker PID?

What is a HIN?

Do I need to provide a Tax File Number (TFN), Australian Business Number (ABN) or Exemption Code?




How do I open a share trading account?

Please complete the online application, submit it, print and post it to the address on the printed version of your application. If you do not wish to complete the online application please print the application form from the website, complete it and post it to the address provided on the application.

What is meant by account type?

The name that you are applying for the trading account in must be either the name of an Individual, Joint, Company, a Trust (with an Individual Trustee) or a Trust (with a Company Trustee).

What information is needed to complete this trading account application?

The information required depends on the different account type that the trading application is being applied for. Below is a list of requirements based on Account Type.

Individual Applicants (including sole traders)

 

A valid email address

Your Bank Account details

Identification

Tax File Number or Exemption code (optional)

Your Username and password (if you have an existing trading account)

 

Joint Applicant

 

A valid email address

Bank account details in the name of the joint applicants

Identification for each applicant

Tax File Number or Exemption code (optional) for both applicants

The Username and password (password only required for first applicant of all applicants that have an existing trading account)

 

Company Applicant

 

A valid email address

Bank account details in the Company name

Details of Account Operators (maximum of 3)

Identification – for each Account Operator

Company ACN (mandatory), ABN (optional)

Company Tax File Number or Exemption code (optional)

The Username and password (password only required for first applicant of all account operators that have an existing trading account)

 

Trust / Superfund Applicants (Individual Trustees)

 

A valid email address

The Trust Bank Account details

Individual details of all Trustees

Identification for all Account Operators (maximum of 3)

Trust/Superfund Tax File Number or Exemption code (optional)

Trust Deed

The Username and password (of all account operators that have an existing trading account)

Trust / Superfund Applicants (Company Trustees)

 

A valid email address

The Trust Bank Account details

Individual details of all Trustees

Identification for all Account Operators (maximum of 3)

Trust/Superfund Tax File Number or Exemption code (optional)

Trust Deed

The Username and password (of all account operators that have an existing trading account)

What is meant by the term Company Type?

There are two types of companies, proprietary and public.

A Public Company is a separate legal entity from the owners (shareholders). The shares are listed on an exchange and available to the public.

Under the governing Corporations Act, a proprietary company must either be:

  • Limited by shares: In this case, shareholders are afforded more protection when it comes to the level of liability they face for company debts. Generally speaking, this is the set-up most preferred by small businesses; or
  • An unlimited company that has a share capital. Here, shareholders face unlimited liability.

The proprietary company must have at least one shareholder and no more than 50 non-employee shareholders. Unlike a public company, a proprietary company can not sell shares to the public, however, it can offer its shares to:

  • Existing shareholders of the company; or
  • Employees of the company or a subsidiary of the company.

Companies are regulated by the Australian Securities and Investment Commission (ASIC).

Who is considered an eligible person for the purpose of certifying identification documents?

The certified photocopy(s) must include a statement "I certify that this is a true copy of the original document" (or similar wording). The certifier must also include their full name, signature and qualification or occupation which makes them eligible, on the photocopied identification and photocopied extract of the Trust Deed (if applicable).

The list of eligible persons who are allowed to certify identification:

• Chiropractor

• Dentist

• Legal practitioner

• Medical practitioner

• Nurse

• Optometrist

• Patent attorney

• Pharmacist

• Physiotherapist

• Psychologist

• Trade marks attorney

• Veterinary surgeon

• Person who is enrolled on the roll of the Supreme Court of a State or Territory, or the High Court of Australia, as a legal practitioner

• Agent of the Australian Postal Corporation who is in charge of an office supplying postal services to the public

• Australian Consular Officer or Australian Diplomatic Officer (within the meaning of the Consular Fees Act 1922)

• Bailiff

• Bank officer with 2 or more continuous years of service

• Building society officer with 2 or more years of continuous service

• Chief executive officer of a Commonwealth court

• Clerk of a court

• Commissioner for Affidavits

• Commissioner for Declarations

• Credit union officer with 2 or more years of continuous service

• Employee of the Australian Trade Commission who is:

o in a country or place outside Australia; and

o authorised under paragraph 3 (d) of the Consular Fees Act 1922; and

o exercising his or her function in that place

• Employee of the Commonwealth who is:

o in a country or place outside Australia; and

o authorised under paragraph 3 (c) of the Consular Fees Act 1922; and

o exercising his or her function in that place

• Fellow of the National Tax Accountants’ Association

• Finance company officer with 2 or more years of continuous service with a finance company

• Holder of a statutory office not specified in another item in this Part

• Judge of a court

• Justice of the Peace

• Magistrate

• Marriage celebrant registered under Subdivision C of Division 1 of Part IV of the Marriage Act 1961

• Master of a court

• Member of Chartered Secretaries Australia

• Member of Engineers Australia, other than at the grade of student

• Member of the Association of Taxation and Management Accountants

• Member of the Australian Defence Force who is:

o an officer; or

o a non-commissioned officer within the meaning of the Defence Force Discipline Act 1982 with 2 or more years of continuous service; or

o a warrant officer within the meaning of that Act

• Member of the Institute of Chartered Accountants in Australia, the Australian Society of Certified Practising Accountants or the National Institute of Accountants

• Member of:

o the Parliament of the Commonwealth; or

o the Parliament of a State; or

o a Territory legislature; or

o a local government authority of a State or Territory

• Minister of religion registered under Subdivision A of Division 1 of Part IV of the Marriage Act 1961

• Notary public

• Permanent employee of the Australian Postal Corporation with 2 or more years of continuous service who is employed in an office supplying postal services to the public

• Permanent employee of:

o the Commonwealth or a Commonwealth authority; or

o a State or Territory or a State or Territory authority; or

o a local government authority;

with 2 or more years of continuous service

• Person before whom a statutory declaration may be made under the law of the State or Territory in which the declaration is made

• Police officer

• Registrar, or Deputy Registrar, of a court

• Senior Executive Service employee of:

o the Commonwealth or a Commonwealth authority; or

o a State or Territory or a State or Territory authority

• Sheriff

• Sheriff’s officer

• Teacher employed on a full-time basis at a school or tertiary education institution

• Member of the Australasian Institute of Mining and Metallurgy

• An officer with, or authorised representative of, a holder of an Australian financial services licence, having 2 or more years of continuous service with one or more licensees


What identification documents are acceptable?

Acceptable Identification Standard

Original certified copy of:

1 x Primary Photographic identification (PART A) or

2 x Primary Non Photographic Identification (PART B) or

1 x Primary Non Photographic (PART B) and 1 x Secondary Identification (PART C).


Note: All documents must be current unless otherwise stated.


PART A

Primary Photographic Identification (Sufficient ID by itself)

Australian Passport issued by the Commonwealth, which has not been expired for more than 2 years

Drivers licence issued in Australia or New Zealand

Proof of Age Cards – issued under a law of a state or territory. (All States)

NSW birth card (not currently available in other states)

NSW Photocard

International Passport or Travel Document which:

o contains a photograph and signature of the person in whose name the document is issued;

o is issued by a foreign government, the United Nations (UN) or an agency of the UN; and

o if written in language not understood, accompanied by an English translation from an accredited translator.

A national identity card issued for the purpose of identity which:

o contains a photograph and signature of the person in whose name the document is issued;

o Issued by a foreign government, the United Nations (UN) or an agency of the UN; and

o if written in language not understood, accompanied by an English translation from an accredited translator.

Firearms licence issued under law (All States)

Defence Force Identity card (excluding spouse cards)

 

OR

PART B

2 x Primary Non Photographic Identification

Birth certificate or birth extract issued by an Australian State or Territory

Birth certificate issued by a foreign government, the United Nations or an agency of the UN

o if written in language not understood, accompanied by an English translation from an accredited translator

Citizenship certificate issued by the Commonwealth

Citizenship certificate issued by a foreign government

o if written in language not understood, accompanied by an English translation from an accredited translator

A pension card issued by Centrelink that entitles the person whose name the card is issued, to financial benefits

Drivers licence issued in Australia that does not contain a photograph of the person in whose name the document is issued

 

OR

PART C

1 x Primary Non Photographic (Refer PART B above) and 1 x Secondary Identification)

A notice that was issued to an individual by a the Commonwealth, State or Territory within the preceding 12 months which;

o contains the name of the person and his or her residential address: and

o records the provision of financial benefits to the individual under a law of the Commonwealth, State or Territory

Taxation Notice issued to individual within the preceding 12 months which contains the name of the individual and his or her residential address

A notice that was issued by a local government or utilities provider e.g. gas, electricity, water, rates within the preceding 3 months that:

o contains the name of the person and his or her residential address: and

o records the provision of services by the local government body or utilities provider to that address or to that person

For those individuals under 18, a notice issued by a School Principal within preceding 3 months with name and address of the person and the period of time the person attended the school

Drivers licence issued overseas

Security Guard / Crowd Safety Officer Identity Card

 

Why do existing account holders / applicants need to provide their current Username?

Please provide your current Username(s) and password(s) so that we can link the new account(s) that you are applying for to your personal Username. Each applicant, or account operator will be asked to provide their Username and password. password only required for first applicant

Why do I need to create a Username and Password?

If you do not have an existing account, you will be required to create a Username and password to access the secure website. The secure website gives you access to trading tools, research and reporting.

We ask that existing users provide their current Username(s) and password(s) so that we can link the new account(s) that you are applying for to your personal Username.

What is an Authority to Trade?

You can allow someone else to access your account, and act on your behalf by authorising additional Authority to Trade in connection with the products you apply for in this application.

We will accept and act upon any instructions issued by the Authority to Trade until further notice by you, the Account Owner. You undertake to ratify whatever the Authority to Trade lawfully do or cause to be done to the authorities set out below:


For Share Trading:

(a) To acquire, buy, deal with, dispose of or sell any stocks, shares, bonds, debentures, notes, rights, units, options or other securities(“securities”);

(b) To make and receive payment for any securities transactions and attendant expenses by any means whatsoever and to give goods receipts and discharges for the proceeds of sales on securities and other monies;

(c) To execute all contracts and other documents necessary or proper for the custody dealing and transfer of securities and related matters;

(d) To receive, hold, arrange custody of and deliver share certificates and other evidence of title to securities;

(e) To exercise all rights and privileges and perform all duties and obligations which may now or in the future pertain to me as holder of securities;


For Cash Management:

(a) Withdraw moneys in any matter;

(b) Overdraw to any extent permitted by us;

(c) Give and cancel authorities in for periodical payments;

(d) Use electronic banking terminals;

(e) Obtain statements of account and any information required concerning the account/s generally.


For Margin Lending:

(a) To operate a Margin Loan, including but not limited to making decisions to sell security, lodge additional security or provide additional funds in event of a margin call;

(b) To be contacted by us if we cannot contact you regarding you margin loan and to receive information from us about your margin loan and security.

Please refer to the Terms and Conditions governing each product you applied for in the Application for further information.

As a company applicant, what is meant by industry types?

Please select one of the following options as an Industry Type:

• Accommodation, Cafes and Restaurants

• Agriculture, Forestry and Fishing

• Communications

• Construction

• Cultural and Recreational Services

• Education

• Electricity, Gas and Water Supply

• Finance and Insurance

• Government Administration and Defence

• Health and Community Services

• Manufacturing

• Mining

• Personal and Other Services

• Property and Business Services

• Retail Trade

• Transport and Storage

• Wholesale Trade

• Other


What is a Nominated Account?

For clients that have elected to settle trades via a cash management account, they will be required to provide bank account details for the account that they would like to transfer funds from and to the cash management account.

Can my margin lending account be in a different name to the trading account?

Your trading account must be in either the same name as your margin loan applicant or Third Party to the margin loan.

What is CHESS and the CHESS Sponsorship Agreement?

The CHESS Sponsorship Agreement relates to the CHESS Settlement Facility System. CHESS stands for the Clearing House Electronic Sub register System. The CHESS Settlement Facility is a computerised share registry and settlement system operated by ASX Settlement & Transfer Corporation Pty Limited (ASTC), a subsidiary of the Australian Stock Exchange. Under the CHESS Settlement Facility there are no share certificates and transfers of shares are effected electronically.

For your holdings in the CHESS Settlement facility you need to be sponsored by a Settlement Participant of the ASX Group. The alternative is to be issuer sponsored, in which case your shares are registered by the individual companies that issued them.

To be CHESS Participant Sponsored you need to enter a Sponsorship Agreement with us. The Sponsorship Agreement authorises us to establish a CHESS Participant Sponsored Holding in your name(s) and control it on your behalf by carrying out instructions relating to your shareholdings. This involves sending the appropriate electronic message to the CHESS Settlement Facility and processing messages received. When a transaction occurs in your CHESS Participant Sponsored Holdings, ASTC will send you a statement detailing the changes to your shareholding in the first week of the following month.

If you have a broker sponsor, all your holdings will be registered in the CHESS Subregister rather than scattered among the various companies with which you hold shares.

What is an Issuer Sponsored Holding?

An Issuer Sponsored Holding is maintained by the issuer of your shares via the share registry. Issuer sponsored shares can be traded through any broker whom has been given permission to access your holding for the purpose of buying or selling shares. Issuer sponsored holdings are allocated a Shareholder Reference Number(SRN) prefixed by an ‘I, which can be found on your holding statement.

For each Issuer Sponsored holding, you will be allocated a unique Security holder Reference Number (also known as an SRN) by the relevant issuer. Your SRN uniquely identifies your holding on the Issuer Sponsored subregister. Unlike a HIN, your SRN will not identify any holdings on the CHESS subregister. Also, unlike a HIN, you will have a different SRN for each holding.

What is a Broker PID?

CHESS Sponsors are allocated a Participant Identification commonly referred to as a PID. The PID uniquely identifies the CHESS Sponsor.

What is a HIN?

CHESS shareholders are allocated a Holder Identification Number commonly referred to as a HIN which is similar in concept to a bank account number. Your HIN uniquely identifies you as the holder of shares.

Do I need to provide a Tax File Number (TFN), Australian Business Number (ABN) or Exemption Code?

Providing your ABN, TFN or Exemption Code is not compulsory, but if you do not, tax may be taken out of your interest at the highest marginal tax rate.

Formal trust - established as a legal entity under a formal trust deed and has a TFN. Please quote the TFN of the formal trust.

Informal trust - no formal arrangements in place e.g. minor, and there is no requirement for you to furnish a Trust income tax return to the Australian Taxation Office.