CHESS Sponsorship: Who Qualifies and What You Get
Learn how CHESS sponsorship provides direct legal ownership of your shares when you trade through a broker.
CHESS sponsorship is a system used in the Australian market to ensure that when you buy shares, you have a direct legal link to them.
Who it's for
This is for retail investors who buy and sell shares through a broker.
What you get
You receive direct legal ownership of your shares. This is confirmed through a HIN, which is a unique number used to identify your specific holding in the market.
What it costs you
There is no specific cost to use this system, but you will still need to pay the standard brokerage fees charged by your broker for every trade.
The catch to know
Not all brokers offer this. If your broker does not use CHESS sponsorship, they will hold your shares as a custodian, meaning they hold them on your behalf rather than you having a direct legal link to the shares.
How to apply
- Open a trading account with a broker.
- Check if your broker offers CHESS sponsorship.
- Confirm you receive a HIN after your first transaction.