Securities Lending

What is a nominee account?

A nominee account is how most investment platforms hold your shares and funds. The investments are registered in the platform’s name (the “nominee”), but they belong to you. The platform is just the legal holder.

Why do platforms use nominee accounts?

Efficiency. If every investor held shares directly in their own name, buying and selling would be slow and expensive. Nominee accounts let platforms bundle everything together and process trades quickly.

It also means you don’t get mountains of paperwork from every company you own shares in.

Is my money safe in a nominee account?

Yes, with proper protections. FCA rules require platforms to keep your investments separate from their own assets. If the platform goes bust, your investments shouldn’t be mixed up with money owed to creditors.

The FSCS also covers up to £85,000 if something goes wrong and your investments can’t be returned.

What’s the downside?

You’re not the registered shareholder, so you might not automatically get shareholder perks (like discounts some companies offer) or voting rights. Some platforms pass these on, others don’t.

If you want to be the registered owner, you’d need a “personal crest” account. But these are expensive and only make sense for large holdings.

Key points about nominee accounts

• Platform holds investments in their name, but they’re legally yours
• Kept separate from platform’s own money. Protected if they fail
• Standard practice. Almost all UK platforms work this way