Share Basics
CHESS-Sponsored vs Issuer-Sponsored Shares
Learn the differences between CHESS-sponsored and issuer-sponsored shares and how each structure affects statements, brokers and transfers.
Australian listed shares can be registered through the CHESS subregister or an issuer-sponsored subregister. You still own the shares in either case, but the administrative pathway differs.
CHESS-sponsored holdings
A CHESS-sponsored holder is linked to a broker and identified by a HIN. Multiple listed holdings may sit under the same HIN where the registered ownership details match.
Issuer-sponsored holdings
An issuer-sponsored holding is administered through the issuing company's registry and identified by an SRN. You generally receive a separate SRN for each company holding.
Buying and selling
CHESS-sponsored holdings are already connected to a broker. Issuer-sponsored shares can usually be moved to a broker before sale, or may sometimes be sold using an issuer-sponsored sale service if available.
Off-market transfers
Transfers from CHESS holdings usually involve the broker. Transfers from issuer-sponsored holdings usually involve the registry. Both require accurate holder and recipient details.
Which structure should you choose?
That depends on your need for consolidated portfolio administration, trading access, fees and preferences. This article explains administration only and is not personal financial advice.
Ready to take the next step?
For a share donation, knowing the sponsorship type helps us direct the paperwork to the right party from the beginning.
General Information Disclaimer
This article contains general information only and does not constitute financial, legal or tax advice. Requirements vary between holdings, brokers, registries and personal circumstances. Consider obtaining advice from an appropriately qualified professional.