Tiger Brokers Australia will launch the Australian stock trading CHESS sponsorship model on January 12, 2024, which means individual clients will have their individual HINs.
Here is the related information:
What is a Holder Identification Number (HIN)?
A HIN is a unique identifier assigned to you when you become a client of a broker who support CHESS sponsorship in Australia. It represents your identity in the Australian share market and is used to record your holdings of Australian securities.
All your CHESS sponsored shares held within the same account are represented by a single HIN. The full format for a HIN is 11 characters, usually starting with an 'X' followed by 10 digits (11 characters in total).
How do I obtain a Holder Identification Number?
You receive a HIN when you open a CHESS sponsored brokerage account in Australia. The broker will register you with the ASX's Clearing House Electronic Subregister System (CHESS), and you'll be assigned a HIN.
What is CHESS
The Clearing House Electronic Subregister System (CHESS) is the computer system developed by the ASX to manage the settlement of share transactions and to record the ownership of shareholdings on its sub-register.
CHESS has two main functions:
Facilitating the clearing and settlement of trades on shares via transfer of title and funds
Providing an electronic sub-register for shares in ASX-listed companies
All ASX trades on Tiger now are CHESS-sponsored, which means the shares you buy, sell and hold through the Tiger’s platform are registered directly with the ASX under your name and unique Holder Identifier Number (HIN).
What are CHESS Holding Statements
The ASX and issuers will send you notices when you register or trade. These CHESS Holding Statements are sent out by the share registry at the end of the month when you buy a security or if there is a change to a security you hold. If multiple securities change (bought, sold), you’ll receive individual CHESS Holding Statements for each security.
What does CHESS sponsored mean?
CHESS sponsored means the ASX ensures accurate record-keeping of share ownership, enabling direct ownership when buying or selling shares. When you buy and sell shares that are 'CHESS sponsored', it means the ASX has a record of you owning those shares directly.
Developed and maintained by the ASX, the Clearing House Electronic Subregister System (CHESS) is responsible for processing all your ASX transactions. At its core, the CHESS system has two functions:
To securely exchange cash and shares between buyers and sellers after every trade.
To create a sub register of owners for every share.
That’s where your HIN comes in. Every time you make an investment, security is assigned to your HIN, ensuring it is held under your own name.
Is a HIN different from an SRN, and how?
A HIN is used when you hold shares through a broker (CHESS-sponsored shares), while an SRN is used for shares held directly with the company (Issuer-sponsored shares).
What should I do if I lose or forget my HIN?
You can contact your broker or the share registry. They will verify your identity and provide you with your HIN. You can also find it in the Tiger mobile app and in your statements.
Can I have multiple HINs?
Yes, it's possible to have multiple HINs if you have accounts with different brokers. However, each broker will give you a separate HIN.
How is my HIN used in share trading?
Your HIN is used to identify your holdings in the CHESS system. Whenever you buy or sell shares, your HIN is used to record these transactions and maintain an accurate record of your holdings.
How do I update my personal information linked to my HIN?
Contact your broker to update your personal information. You may need to provide supporting documents for certain changes, like a change of name or address.
Can I transfer shares between HINs?
Yes, shares can be transferred between HINs. This usually requires completing a broker-to-broker transfer form and may involve fees.
What happens to my HIN if I stop trading shares?
If you stop trading shares, your HIN remains active but dormant. You won't lose it, and it can be reactivated if you resume trading. However, it's important to keep your contact details up to date with your broker, even if you're not actively trading.
What are the main advantages of CHESS Sponsorship
Full legal ownership: Since the shares you purchase are owned under your HIN (including your name and tax file number), CHESS gives you direct access to your shares rather than other people or entities holding them on your behalf.
Also more access to stock corporate a tions, for example DRPs and BSPs: CHESS gives investors the ability to elect or cancel dividend and dividend reinvestment plans (DRP) and bonus share plan (BSP) for their CHESS holdings.