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 direct or nominee CDS account?

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post Sep 22 2023, 10:40 AM

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anybody opened direct cds with maybank recently? the online brokerage now is 0.15% with minimum rm12. is that correct?

previously i think it was 0.1% with minimum rm8. or i kena con?
thljcl
post Jan 15 2024, 03:30 AM

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It seems like the rights of beneficial shareholders do differ depending on jurisdiction.

In the U.S., laws clearly define the true owner of the share is beneficial owner, thus retaining the right to vote.

Brokers or financial institutions that act as custodians have legal obligations to keep the record of beneficial owners of securities.

Laws clearly stated that the nominee has to do as the beneficial owner instructs.

Beneficial owner cast his vote via proxy voting either online, by phone or mail.

Holding shares in nominee account allow easy transaction while retaining owner’s right.

https://www.sec.gov/spotlight/proxyprocess/...votingbrief.htm

Things do differ when it comes to UK & Singapore.

Nominee shareholders are the legal shareholders on record, thus only they have the rights to vote.

If you own the share via nominee account, you don’t have the rights to vote.

You have to pay extra to hold share directly in your name in central depository system to have the right to vote.

In Malaysia, the right of shareholder via nominee account relies on how reliable the broker is as our laws do not protect the right of shareholder as U.S. laws do.

How do these differing laws affect us?

If you only buy shares in one region, you only have to remember that region’s law.

If you have access to multiple markets via Interactive Brokers, your rights differ depending on which exchange you buy the share.

In short, via IBKR, you have full voting right as the owner of U.S. share but zero voting right as owner of Singapore share, for example.

That’s why there is no need to pay for CDS fee if you open an account in U.S. broker.

Will I have the right to vote on my U.S. share if I buy share via Rakuten Trade?

I don’t actually know as it is not regulated in U.S. unlike IBKR.

As IBKR is regulated in U.S., you will certainly have the right to vote as the owner of U.S. share.


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