Nominee Services

When you are choosing a financial entity to help you buy and sell investments, cost is not the only consideration. Traditionally when you bought shares or funds, you would be the registered owner and received a printed certificate confirming this. This would have meant that your name appears on the share register, ensuring you can vote during a shareholders’ meeting.

However, in case of overseas shares the certificate system requires you to send your certificate to the financial entity before being able to sell the shares, which makes dealing cumbersome and expensive since it also means more administration work for the entity. This procedure however does not apply to the sale of local shares on the Malta Stock Exchange.

Many financial entities licensed to provide investment services may be able to buy and sell investments on your behalf, and register such investments in their own name. This service is called “nominee”. Financial entities will generally register your investments in “pooled nominee accounts”.

  • Why have nominee accounts become so popular?

  • How do nominee accounts work in practice?

  • How do I know if a financial entity offers nominee services or not?

  • How safe are Nominee accounts?

  • Will I be kept updated about the performance of my investment portfolio?

  • I noticed that my entity charges me a “custody fee”. Why is this? What does “custody” mean?

  • What happens if the beneficial owner of an investment passes away?